Import Bill for Used Vehicles Plummets 83% to N138.62 Billion

Import bills for used vehicles, commonly known as tokunbo, into Nigeria dropped by 83 percent year-on-year, falling to N138.62 billion in the first half of 2024 from N819.15 billion in the same period in 2023, according to the National Bureau of Statistics (NBS).

The NBS report, part of the “Commodity Price Indices” and Terms of Trade for the review period, revealed that no used vehicles were imported in Q1 2024, compared to N69.23 billion worth of imports in Q1 2023.

In Q2 2024, the value of imported used vehicles reached N138.62 billion, representing an 81.5 percent decline year-on-year from N749.92 billion in Q2 2023.

The report noted that most used vehicles were imported from the United States, with total imports from America in Q2 2024 amounting to N971.84 billion.

It’s important to recall that last year, the federal government introduced new taxes on imported vehicles.

The new tax law stipulates that vehicles with engine capacities between 2.0 and 3.9 liters will incur an additional Import Adjustment Tax (IAT) levy of two percent of the vehicle’s value, while vehicles with capacities of 4.0 liters and above will face a four percent levy.

This new levy is in addition to the existing 35 percent import duty and a 35 percent levy paid by vehicle importers, although vehicles below 2,000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempt from the IAT levy.