Nigeria’s importation of passenger motor cars has surged, hitting a value of over N1 trillion in the first nine months of 2025 (January to September). This massive rebound, evidenced in new data from the National Bureau of Statistics (NBS), is strongly linked to the relative stability and appreciation of the Naira in the foreign exchange (FX) market during the third quarter.
The N1 trillion figure, up from N894.09 billion recorded in the corresponding period of 2024, signals a clear turnaround in market sentiment and consumer willingness to make high-value purchases following months of weak demand. The recovery gathered significant momentum in the second half of the year, according to the official figures.
A breakdown of the data reveals the dramatic shift in market dynamics. Passenger car imports were valued at N224.58 billion in Q1 2025 and N254.67 billion in Q2 2025, reflecting the lingering effects of earlier currency volatility.
However, the trend reversed sharply in the three months between July and September 2025. Passenger car imports in the third quarter alone surged to a record N527.98 billion.
This exponential rise in Q3 more than doubled the Q1 and Q2 figures individually, and largely compensated for the declines recorded in the first half of the year. The third-quarter value also significantly exceeded the N363.42 billion recorded in the same period of 2024, underscoring the decisive role currency performance plays in the auto sector.
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The rebound is predominantly a result of improved market confidence and the central bank’s actions in stabilizing the local currency. Analysts from FCSL Research confirmed that the Naira maintained a strong performance in Q3 2025, appreciating by 3.2 per cent to N1,480.66 to the dollar, an improvement anchored by sustained Central Bank of Nigeria (CBN) interventions and increased external reserves. This stability allows importers to better forecast costs and, in turn, eases pressure on buyers.
Industry stakeholders noted that the introduction of the new 846 valuation method for customs duties, which accounts for depreciation and wear-and-tear on imported vehicles, has also contributed to reducing inflated duty costs. However, the data strongly suggests that the exchange rate effect remains the dominant driver, with the weakened Naira mechanically inflating the local currency value of imports even as volumes adjust.
The United States remains Nigeria’s largest source of imported passenger vehicles, accounting for over 41 per cent of the total N1 trillion import value during the nine months.
This high dependency on foreign markets means the auto sector will remain highly exposed to currency movements, despite policy efforts to promote local vehicle assembly. The persistent demand for vehicles, both for commercial transport and household use, has proven resilient, even as overall prices remain elevated due to the inflationary environment.
