Nigeria’s passenger vehicle imports rebounded in 2025 amid improved foreign exchange market conditions and renewed confidence among importers.
Official trade data shows that the value of passenger motor car imports rose by 12.7 percent year on year in the first nine months of 2025, reversing the weakness seen during periods of heightened FX volatility.
Passenger vehicle imports were valued at ₦1.01 trillion between January and September 2025, compared with ₦894.09 billion in the same period of 2024.
The ₦113.15 billion increase underscores a recovery driven largely by improved exchange rate conditions in the second half of the year.
A breakdown of the data shows that import activity remained subdued in the first half of 2025. In the first quarter, passenger vehicle imports declined year on year, indicating that dealers were still adjusting to earlier exchange rate disruptions and high landing costs.
The second quarter followed a similar trend, with import values remaining below the corresponding period of 2024 despite gradual improvements in FX liquidity.
The recovery gained traction in the third quarter. Between July and September 2025, passenger vehicle imports surged sharply, more than offsetting the earlier declines and driving the overall nine-month growth.
The third quarter accounted for a significant share of total imports during the period, highlighting the impact of improved FX stability on trade activity.
Trade data shows that the United States remained Nigeria’s largest source of imported passenger vehicles, accounting for over 40 percent of total import value in the first nine months of 2025.
Imports from the US were largely dominated by used vehicles with larger engine capacities, reflecting sustained demand for second-hand cars in the domestic market. South Africa ranked a distant second, while the United Arab Emirates increased its share, particularly in the third quarter.
Analysts attribute the rebound primarily to improved conditions in the foreign exchange market. During the third quarter, the naira traded within a relatively narrow range, supported by stronger dollar inflows, improved FX liquidity, and sustained interventions by the Central Bank of Nigeria. External reserves also increased during the period, helping to anchor market confidence.
Market participants say the relative predictability of the exchange rate reduced pricing uncertainty and enabled importers to plan shipments more effectively. While vehicle prices remain elevated, the easing of FX volatility has improved cost management and reduced the risk associated with vehicle imports.
Industry sources also point to changes in customs valuation practices as a contributing factor. Recent adjustments to duty assessment methods, including the consideration of depreciation and vehicle condition, helped moderate clearance costs for used vehicles, providing relief to importers after a prolonged period of elevated duties.
Port operators and freight forwarding associations report increased vehicle traffic at major terminals in the second half of the year, confirming the rebound in import activity. Although volumes have not returned to earlier peak levels, the upward trend suggests that the market has moved past its weakest phase.
Looking ahead, analysts expect passenger vehicle imports to remain supported if FX stability is sustained. However, they caution that risks remain, including potential pressures from global oil price movements, seasonal import cycles, and broader macroeconomic conditions.
Despite these challenges, the 12.7 percent increase in passenger vehicle imports marks a clear turnaround for the sector. The data indicates that improved FX stability has played a central role in restoring importer confidence and stabilising trade flows in Nigeria’s vehicle market.