The dream of owning a car is slipping further away for many Nigerians.
Soaring living costs, high import tariffs, and an ever-weakening naira have pushed foreign-used vehicles, popularly known as Tokunbo, out of reach for the average buyer.
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In their place, Nigerian-used cars are enjoying an unprecedented boom, attracting not only local buyers but also customers from neighbouring countries, according to findings by PUNCH.
Until a few years ago, the hierarchy was clear: foreign-used cars sat at the top of the market, valued for their perceived reliability and quality, while locally used vehicles were a fallback for those on a tighter budget. Now, that equation has flipped.
Findings across Lagos, Sokoto, and other major markets reveal a surge in listings for Nigerian-owned cars on social media, online marketplaces, and roadside dealerships. Dealers confirm that while Tokunbo cars remain desirable, their prices have doubled or tripled within a year, pricing out much of the market.
“Back then, we would travel to Cotonou and neighbouring countries to bring cars because our money was valuable,” said Nurudeen Amodu, a dealer in both Nigerian and foreign-used cars. “Now they come to us to buy, because our money has lost value.”
Amodu noted that a foreign-used Toyota (2003–2006) that once sold for about ₦1.5 million now costs between ₦8 million and ₦10 million. The Honda CR-V (2010) has jumped from ₦5 million to ₦13 million, while the Toyota Venza, which used to sell for ₦6 million, now goes for nearly ₦20 million.
Policy Shifts and Price Shocks
The price shock has been compounded by government policy changes. In 2023, the Nigerian Customs Service replaced its long-standing one per cent Comprehensive Import Supervision Scheme (CISS) charge with a four per cent Free On Board (FOB) levy.
Customs Comptroller-General Adewale Adeniyi explained the move as part of a broader modernisation push, including the deployment of the indigenous B’Odogwu cargo clearance system.
While aimed at streamlining operations, the increased levy has added to the final price tag of imported cars, further discouraging Tokunbo purchases.
Foreign buyers eye Nigerian-used cars
The shift has not only affected Nigerian consumers but also reshaped cross-border trade. Dealers in Sokoto report an influx of customers from Niger Republic, while traders in Lagos and other border regions attract buyers from Benin and Cameroon.
“I now have more customers from Niger Republic than within Nigeria,” said Haruna Abubakar, a dealer in Sokoto. “They often buy Toyota Corolla, Camry, and Sienna. With the current exchange rate, they’re the ones buying from us—it’s good for our business.”
Another dealer, Mallam Jamiu Bello, noted that many Nigerien buyers even request Nigerian number plates, which their laws allow after securing a single document. As a result, it is common to find cars in Niger bearing Sokoto registrations.
Car swaps and hard choices
Dealers are adapting to the market’s new reality. Amodu said his business now offers swap deals, taking a customer’s old vehicle plus a cash balance for a newer model, just to keep sales moving.
In Lagos, a seller known simply as Sam said the economic strain is prompting people to sell their cars for basic survival needs. “Even people now sell their cars so they can eat,” he said. “I bought a fairly used 2005 Toyota Corolla for ₦4 million. I saw another for ₦5.2 million because the owner needed the money.”
A market turned upside down
The combination of currency weakness, higher import duties, and foreign demand has created an unusual market: Nigerian-used cars, once the cheaper, less prestigious option, are now a hot commodity, even across borders.
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For many Nigerians, however, this boom is bittersweet. The rising resale value of local cars may be good for sellers, but for first-time buyers and low-income households, the road to ownership has never looked longer.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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