A growing trend is reshaping Nigeria’s automotive landscape: the influx of imported used cars, locally known as ‘tokumbo’, according to experts.
While these vehicles offer a lifeline of mobility for many Nigerians, this rising dependence on imports is ringing alarm bells among experts and industry insiders.
Automotive experts who spoke to The PRIMANEWS said this shift has immediate implications that demand attention from policymakers and industry stakeholders.
Nigeria imports 60 per cent of all used cars from the United States, according to findings from the International Trade Administration.
The majority of these vehicles are Japanese brands, including Toyota, Hyundai, and Kia, renowned for their reliability.
Despite this dominance, there’s a notable uptick in the acceptance of American car models, signaling a subtle shift in consumer preferences.
According to a Battery and Power Systems Analyst at DM Lustrous Cars Ltd, Victor Ezeali many of these cars, after serving their ten-year lifespan in their originating countries, find their way to Nigeria.
He explained that while these vehicles provide mobility and an improved quality of life, they often arrive in compromised conditions.
Ezeali said safety features, such as airbags, might be non-functional and essential components, like tires and suspensions, are often in a deteriorated state.
He added that, unlike stringent roadworthiness standards in the West, Nigeria seems to adopt a more lenient approach, raising concerns about passenger safety.
“Many of the used cars Nigeria imports from these countries have been refurbished and will never pass a roadworthiness test there,” Ezeali said.
According to the Nigeria Customs Service, a total of 117,830 vehicles were imported into the country in the first quarter of 2021, while 97,132 vehicles were imported in the same period of 2022.
The steady decline was witnessed in the first quarter of this year as a total of 51,782 Tokunbo vehicles were imported.
Speaking with The PRIMANEWS, a Sales Professional at Rapida Mobility Solutions, Eniediabasi Henry, highlighted a shifting trend in Nigeria’s car market, emphasising the declining appeal of new cars due to customs duties and economic factors.
Henry noted the influence of forex rates and the growing preference for well-maintained Nigerian cars.
He underscored the substantial cost difference, citing examples like a 2014 or 2015 Toyota Camry priced at N8m to N10m compared to over N15m for a new one.
Henry also pointed out a market shift with the introduction of affordable vehicles like Changai and Geely, foreseeing reduced importation and a significant impact on pricing and value.
He said, “I don’t foresee this trend changing anytime soon. However, there is a shift happening with the introduction of new vehicles in the market such as the Changai and Geely. These vehicles are considerably cheaper compared to well-known brands.”