Nigeria’s Used Car Market Booms as Owners Rush to Sell

By Dr Kayode Omolayo 

August 9, 2025

The Nigerian-used car market is experiencing an unprecedented surge, as economic hardship forces more private owners to put their vehicles up for sale.

CoolNews investigations reveal that soaring living costs, steep exchange rates, and higher import duties have made foreign-used (“Tokunbo”) cars increasingly unaffordable. As a result, locally used cars have become the preferred option for buyers seeking cheaper alternatives.

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From Lagos to Sokoto, dealers report a sharp rise in listings on online marketplaces, social media, and roadside car lots. Some even admit that buyers from neighbouring countries — including Benin Republic, Niger, and Cameroon — are snapping up Nigerian-used cars due to stronger currencies in their home markets.

“This is a reversal of what used to happen,” said Nurudeen Amodu, a Lagos-based dealer. “Before, we travelled to Cotonou to buy cars, but now, Cotonou buyers come here. A Toyota that cost ₦1.5m a few years ago is now selling for between ₦8m and ₦10m.”

The shift comes amid reduced import volumes following the introduction of a new 4% Free On Board (FOB) levy by the Nigerian Customs Service, replacing the previous 1% Comprehensive Import Supervision Scheme (CISS) charge.

For many Nigerians, however, selling their cars has become a matter of survival. “I had to sell my Corolla just to feed my family,” said Olumide Adegbola, a private car owner in Lagos. Others, like Yunusa, admit they sold for profit to cushion the impact of rising living costs, even if it meant going without a vehicle.

Dealers and industry associations are now calling for greater investment in locally assembled vehicles, warning that without action, car ownership may soon become a luxury reserved for the wealthy.

Ajibola Adedoyin, President of the Association of Motor Dealers of Nigeria, urged both federal and state governments to prioritise affordable, locally made cars. “The current situation is unsustainable. If purchasing power isn’t improved, the market will shrink further, and more unsafe, aging vehicles will remain on our roads,” he warned.

With import prices climbing and domestic demand shifting, the Nigerian-used car market may remain the hottest segment in the auto industry — for better or worse.