Nigeria spends ₦1.18trn on cars as vehicle imports surge 146%

Nigeria spent about ₦1.18 trillion on passenger motor cars in the first half of 2026, a 145.6 per cent increase from ₦479.26 billion a year earlier, underscoring the strength of vehicle demand and the country’s continued dependence on imported transport equipment.

Latest analysis of the National Bureau of Statistics (NBS) Foreign Trade Statistics showed that the value of passenger motor car imports rose from ₦552.34 billion in the first quarter to ₦624.75 billion in the second quarter.

The sharp increase lifted Nigeria’s overall transport equipment and parts import bill to ₦3.73 trillion in H1 2026, up 44.2 per cent from ₦2.59 trillion in the corresponding period of 2025.

Transport equipment imports increased from ₦1.75 trillion in Q1 to ₦1.99 trillion in Q2, reflecting stronger demand for vehicles and other transport-related equipment. The latest NBS trade report was released on September 7.

Passenger vehicles recorded the strongest growth among the major transport categories. Q1 imports rose to ₦552.34 billion from ₦224.58 billion a year earlier, while Q2 imports reached ₦624.75 billion from ₦254.67 billion.

The increase has occurred despite prolonged pressure on household incomes and the relatively high cost of vehicles in the Nigerian market.

The broader transport import bill was also supported by other transport equipment, which rose to ₦1.83 trillion in H1, from ₦1.36 trillion in the first half of 2025.

Industrial transport equipment accounted for ₦1.39 trillion, up from ₦975.18 billion a year earlier, while non-industrial transport equipment rose more moderately to ₦440.73 billion from ₦380.96 billion.

Imports of parts and accessories, however, moved in the opposite direction, falling about 4.4 per cent to ₦722.59 billion from ₦755.43 billion.

The pattern indicates that the growth in Nigeria’s transport import bill is being driven primarily by complete vehicles and other equipment rather than replacement parts.

The surge in vehicle imports is also reflected in physical cargo activity. The Nigerian Ports Authority reported that 58,870 vehicles were handled at Nigerian ports in the first quarter of 2026, up 67 per cent from 35,262 units in Q1 2025.

US vehicle shipments have also increased. Data reported by the US Census Bureau showed that Nigeria imported about ₦927 billion worth of vehicles from the United States in H1 2026, with passenger cars accounting for the largest share.

The increase comes as the Federal Government pushes policies aimed at reducing transport costs and encouraging alternative-fuel vehicles.

The government has introduced duty waivers on electric vehicles, mass-transit buses and manufacturing machinery, while authorities have also promoted compressed natural gas (CNG) as an alternative to petrol following the removal of the fuel subsidy.

President Bola Tinubu has said state governments would increasingly deploy CNG and electric vehicles to reduce transportation costs from October 1.

Yet the surge in conventional vehicle imports suggests that the transition to alternative-fuel transport has not displaced demand for petrol-powered cars.

For the economy, the import growth has two opposing implications. Stronger vehicle demand supports activity across ports, logistics, dealerships, repairs and related services, but it also increases the amount of foreign exchange required to meet domestic transport demand.

The figures are particularly relevant as Nigeria seeks to strengthen its external position and reduce import dependence. Greater availability of foreign exchange and a relatively more stable naira may be helping importers plan purchases more confidently, while pent-up demand could also be contributing to the increase.

The longer-term policy challenge is whether Nigeria can convert the growing vehicle market into local assembly, component manufacturing and alternative-fuel production, rather than allowing most of the economic value to accrue to overseas manufacturers.

Nigeria’s ₦1.18 trillion passenger-car import bill therefore tells two stories: rising demand for mobility and a persistent gap in domestic automotive capacity. The success of current transport and industrial policies will ultimately depend on whether future growth in vehicle demand creates more local production, jobs, technology transfer and value addition rather than simply a larger import bill.