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Hardship: Nigerian-used car market booms as more owners sell off private vehicles

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Soaring living costs, high exchange rates, and rising import tariffs are pushing foreign-used cars out of reach for many Nigerians, with Nigerian-used cars becoming the popular option.

This trend is fuelling a boom in the Nigerian-used cars market as more buyers turn to locally pre-owned vehicles for affordability.

Findings revealed a sharp increase in vehicle listings by private owners, particularly on online marketplaces, social media platforms, and roadside car lots.

This is even as car dealers lamented the rising costs and falling demand for imported vehicles.

According to them, while foreign-used vehicles, popularly known as Tokunbo, remain popular, their prices have doubled or even tripled in the past year due to the depreciating naira and heavy import charges.

The development comes amid a significant decline in the volume of imported vehicles, following the introduction new four per cent Free On Board levy, which replaced the former one per cent Comprehensive Import Supervision Scheme charge.

The Nigerian Customs Service had earlier announced that the new levy was enshrined in the Customs Act 2023 and would serve as a major funding source for its operations, including the deployment of the B’Odogwu cargo clearance system.

NCS’s Comptroller-General, Adewale Adeniyi, said the transition from the CISS to the FOB levy was aimed at modernising the service and reducing clearance bottlenecks.

“The one per cent CISS has served the country for decades,” Adeniyi said at a recent stakeholder forum in Lagos. “But as we embrace digitisation and indigenous technology like the B’Odogwu platform, the Customs must find sustainable ways to fund these transformations.”

Nigerian-used cars market booms

Speaking with Saturday PUNCH, a dealer in Nigerian and foreign used vehicles, Nurudeen Amodu, decried the rising cost of automobiles in the country, saying the situation had also reversed the old practice of Nigerian dealers travelling to Cotonou and other neighbouring countries to buy cars.

“Back then, what we usually did in the car business was to travel to Cotonou and other neighbouring countries to bring cars because our money was valuable, but currently they come to us to buy now because our money has lost value.

“Recently we hosted some customers from Cotonou that came to buy cars, and I asked them why, they said because their money has more value now than the naira and that they would make more buying Nigerian used cars,” Amodu said.

He gave examples of price jumps in recent years: foreign used Toyota (2003–2006) models that sold for about N1.5m now cost between N8m and N10m; the Honda CR-V (2010) rose from N5m to N13m; the Lexus RX330 from N5m to N15m; and the Toyota Venza from N6m to nearly N20m.

Amodu said the sharp depreciation of the naira had pushed the prices of foreign used cars, popularly called Tokunbo, to levels comparable to, or even higher than, locally used vehicles.

“Some companies have liquidated. Imagine running a business with N100m capital and stocking vehicles for N5m each before. You could have 10 cars in stock then, but now that each costs around N15m, you can see how the business is affected.”

“What we do presently to address the situation for our customers is car swap, where we collect your old car and you add a little money to get another,” he added.

Several car dealers in Sokoto also said that they are witnessing an influx of buyers from neighboring Niger Republic, to buy Nigerian-used cars due to better pricing.

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They attributed the growing trend to the relative strength of the Nigerien currency against the Nigerian naira, making Nigerian-used vehicles more affordable for Nigerien buyers.

A car dealer operating along Maiduguri Road in Sokoto, Haruna Abubakar, said the number of customers from Niger Republic had surpassed local patronage in recent times.

“I now have more customers from Niger Republic than within Nigeria,” he said. “They often buy popular models like Toyota Corolla, Camry, and Sienna. It used to be the other way around, but with the current exchange rate, they are the ones buying from us, and it is good for our business,” Abubakar said.

Another dealer, Mallam Jamiu Bello, disclosed that he had been consistently selling Nigerian-used vehicles to Nigerien nationals over the past few years.

“Many of them not only buy vehicles here, but also request Nigerian number plates,” he disclosed. “From what I understand, their laws permit them to use Nigerian plates after securing a single document, and they drive the cars like that back home.”

Bello added that it is not uncommon to find several cars in Niger Republic bearing Nigerian registration numbers, especially from Sokoto.

According to him, the development is boosting the local automobile market in Sokoto, even as economic challenges continue to affect domestic buyers.

Also speaking, a Lagos-based car seller, who only identified himself as Sam, said people now patronise Nigerian-used cars more than foreign-used ones because of the Customs duty hike and high exchange rates.

“This current situation will make it difficult for many Nigerians to get cars. Even people now sell their cars so they can eat. I bought a fairly used 2005 Toyota Corolla for N4m. Also, in Lagos State, I saw another one whose owner said it was going for N5.2m. This is because the man has issues,” he noted.

Sam added, “Not only do people from Benin Republic buy Nigerian-used cars, but people also come from Cameroon. This is because their currency is stronger. Recently, I compared the prices of a 2013 Ford Escape in Cotonou, and it is between 2.8m to 3m CFA. In Nigeria, it is being sold for N11m to N13m.”

Dealers make case for locally assembled cars

Amid the rising cost of foreign-used vehicles and dwindling import volumes, the Association of Motor Dealers of Nigeria has urged the federal and state governments to increase their support for locally assembled cars as a sustainable alternative.

The national president of the association, Ajibola Adedoyin, argued that strengthening local automobile production would not only reduce dependence on costly imports but also create jobs and stabilise vehicle prices in the long term.

Adedoyin disclosed that the association was planning to engage car manufacturers in Nigeria to produce affordable cars for average Nigerians.

He stated, “With the current prices of cars, low-income earners earning around N100,000 monthly, even if they get a loan, they will find it very difficult to pay it back. There are many other financial obligations for such individuals.

“That is why we will be on better leverage when we purchase vehicles assembled in Nigeria. But, car manufacturers in the country are not thinking of average Nigerians. They should think about producing cars that are reasonably good and suitable for our usage. Right now, they are building supersonic cars with prices far beyond the reach of common Nigerians.

“We are trying to look inwards so as to patronise our own local assemblies in Nigeria. That is why we have been trying to partner with the National Automotive Development Council to see how we can bring that to reality. We have been talking about how to make our own cars here more efficient and durable.”

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Adedoyin also expressed concern over the increase in car duties, adding that the new percentage will further push imported cars out of Nigerians’ reach.

Adedoyin said, “What was introduced is an increment, because four per cent was introduced and only one per cent was removed. They said they are cancelling the one per cent levy, and now they have added four per cent. So, there is an increment of three per cent at the end of the day.

“The other seven per cent that we thought they were going to remove is not even meant for the Customs. It was meant for the Nigerian Ports Authority and others. They did not remove it.

“It is a demand and supply thing. There is no patronage like before due to the prices. If you check the level of vehicle importation, it has also dropped. Right now, on our side, we are trying to see how we can really bring in locally assembled Nigerian cars to be sold by our members, rather than importing from the USA or Canada.”

The AMDN National President noted that it would be difficult for many Nigerians to afford any car at the moment, as prices had increased outrageously.

Lamenting the havoc the price hike had wreaked, Adedoyin said that expired cars were being refurbished, leading to accidents on the roads because they were no longer roadworthy.

He said, “That is why we are advocating that we look inwards. However, this issue has affected car sales. Invariably, this problem is causing harm on our roads because when people cannot replace their old vehicles, they tend to manage them. Managing such vehicles leads to a lot of accidents.

“Cars are necessities. If the purchasing power is not increased, there will definitely be a drop in purchasing. The exchange rate is another factor affecting the importation of cars. Although the exchange rate is not determined by Nigeria, if we check the rate now, the amount we exchange for dollars has greatly increased. Some years ago, it was not like this. Today, the duty for a car is based on the amount it is purchased for in dollars.”

More Nigerians sell cars

A private car owner, Olumide Adegbola, told our correspondent that he had to sell his vehicle due to the worsening economic situation in the country.

He explained that feeding his family had become a daily struggle, making it nearly impossible to afford fuel for transportation.

“The economy has really been tough lately. I can’t even afford basic necessities,” he said. “To stay afloat, I had to sell my car to meet my family’s needs. It was a Corolla I bought a few years ago for N2,000,000, but I had to sell it for N4,000,000.”

Another car owner, identified simply as Yunusa, also shared that he sold his car as a result of financial hardship.

Recounting his experience, he said, “I lied to my client that I was travelling just so I could sell my car. I wasn’t travelling, hunger will make you do anything just to survive.

“Now, I don’t have a car, and honestly, I don’t know when I’ll be able to afford one again. Things are really hard.”

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“It’s the profit that made me sell it so that I can help my family and be stable financially.”

 

Agents speak

Licensed Customs agents operating in the nation’s maritime sector opined that introducing the four per cent FOB levy would negatively affect vehicles and other imports.

A former Interim National President of the Association of Nigerian Licensed Customs Agents, Pius Ujubonu, told Saturday PUNCH on Friday that the policy would make the acquisition of vehicles purely luxurious.

He added that in a few months to come, vehicles would be out of reach for nearly everybody in the country.

“It is almost making the acquisition of a vehicle purely a luxurious thing. It didn’t take into consideration the necessity of transportation, because there was no exemption in the policy introduction. If it is a situation where, for example, commercial, special-purpose vehicles, among others, are exempted, it would have been a different thing. But the moment you make it a policy without any exemption, it affects several ways. In the next one or two or three, four months, vehicles will almost be out of reach for nearly everybody,” Ujubonu said.

The National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria, Mr. Taiwo Fatobilola, said, “The very moment there is an increase, it affects everything. But, the only area where we are disturbed is the seven per cent surcharge that has not been removed. Because the assurance they gave was that they were going to remove the one per cent CISS and the seven per cent surcharge. FOB is supposed to cover both that one per cent and seven per cent, but the seven per cent is still appearing on the system, so that is the only area where I feel.”

A member of the Elders Maritime Agents Association, Nnadi Ugochukwu, described the four per cent FOB as an addition to the cost of doing business.

“So, that is an addition. Many people are abandoning their goods, especially their vehicles, in the ports, because of the cost of clearing. And now they want to add more money to the cost. And when you push that to the people, it goes to the economy to cause inflation; it’s as simple as that.

“Many businesses will have to fold. But the point is that they will add the prices they sell in the market. So, of course, it will affect imports. Some people may no longer be able to travel. They just stay around and manage what they have here,” Ugochukwu said.

A member of the National Association of Government Approved Freight Forwarders, Stanley Ezenga, however, said it was too early to attribute the introduction of the four per cent FOB levy to the drop in imported vehicles.

“The thing just started, so it would be too early to judge the effect. But, no matter what, importation can never stop, and for now, it hasn’t dropped. So, we should give them like three months to see because already some products have been imported into the country that are yet to be cleared.

“To me, it won’t lead to any decline in imports; rather, it will lead to inflation because importers will add what they have spent on the goods, and it will trickle down to the final consumers,” he said.

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Bank recapitalisation: Local investors provide 72% of N4.6tn

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The Central Bank of Nigeria (CBN) on Wednesday said domestic investors accounted for the bulk of funds raised under its banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65tn total capital secured by lenders.

The apex bank disclosed this in a statement marking the conclusion of the exercise, which began in March 2024 and saw 33 banks meet the new minimum capital requirements.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the CBN, Nigerian investors provided about N3.37tn of the total capital raised, underscoring strong domestic confidence in the banking sector, while foreign investors accounted for the remaining 27.45 per cent.

“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement said.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The bank confirmed that 33 lenders had met the revised capital thresholds, while a few others were still undergoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” it stated.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

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The regulator stressed that the recapitalisation exercise was completed without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, had improved and remained above global Basel benchmarks.

Minimum capital adequacy ratios were pegged at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The CBN added that the exercise coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall system stability.

To sustain the gains, the apex bank said it had strengthened its risk-based supervision framework, including periodic stress tests and requirements for adequate capital buffers.

It added that supervisory and prudential guidelines would be reviewed regularly to improve governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics showed that foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025 from $7.00bn in 2024, reflecting strong investor interest during the recapitalisation drive.

However, the Centre for the Promotion of Private Enterprise has cautioned that despite the strengthened banking system, credit to small businesses remains weak, warning that the benefits of the reforms are yet to fully impact the real economy.

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Court freezes N448m assets in Keystone Bank debt recovery suit

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The Federal High Court in Lagos has ordered the freezing of funds and assets valued at N448,263,172.41 in a debt recovery suit instituted by Keystone Bank Limited against five defendants.

The order was made on March 26, 2026, by Justice Chukwujekwu Aneke following an ex parte application moved by Keystone Bank’s counsel Mofesomo Tayo-Oyetibo (SAN), against Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

In his ruling, Justice Aneke granted a Mareva injunction restraining the defendants, whether by themselves, their agents, privies, or assigns, from withdrawing, transferring, dissipating, or otherwise dealing with funds, shares, dividends, and other financial instruments standing to their credit in any bank or financial institution in Nigeria, up to the sum in dispute.

The court further directed all banks and financial institutions within the jurisdiction to forthwith preserve any funds belonging to the defendants upon being served with the order.

The said institutions were also ordered to depose to affidavits within seven days of service, disclosing the balances in all accounts maintained by the defendants, together with the relevant statements of account.

In addition, the court granted a preservative order restraining the defendants from disposing of, alienating, or otherwise encumbering any movable or immovable property, including any future or contingent interests, up to the value of the alleged indebtedness.

The court also granted leave for substituted service of the originating and other court processes on the second and third defendants by courier delivery to their last known addresses.

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The matter was adjourned to April 9, 2026, for mention.

According to the originating processes before the court, the suit arises from a N500 million overdraft facility granted by the claimant to the first defendant on March 28, 2023, for a tenure of 365 days at an interest rate of 32 per cent per annum.

The claimant averred that the facility, initially secured by a $200,000 cash collateral and subsequently by a mortgaged property located at Itunu City, Epe, Lagos, expired on March 27, 2024, leaving an outstanding indebtedness of N448,263,172.41 as at October 31, 2024.

In the affidavit in support of the application, the claimant alleged that the facility was diverted for personal use by the third defendant and channelled through the fourth and fifth defendant companies.

It further contended that the first defendant is no longer a going concern and has failed, refused, and neglected to liquidate the outstanding indebtedness despite several demands made between May and October 2025.

The claimant also expressed apprehension that the defendants may dissipate or conceal their assets, thereby rendering nugatory any judgment that may be obtained in the suit, and consequently urged the court to grant the reliefs sought in the interest of justice.

After considering the application and submissions of learned silk, Justice Aneke granted all the reliefs sought and adjourned the matter to April 9, 2026, for further proceedings.

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Sanwo-Olu unveils Lagos 2026 economic blueprint, vows inclusive growth

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The Lagos State Governor, Babajide Sanwo-Olu, on Tuesday unveiled the 2026 edition of the Lagos Economic Development Update, reaffirming his administration’s commitment to driving inclusive growth and ensuring that economic progress translates into tangible benefits for all residents of the state.

The unveiling of this year’s outlook, held in Ikeja, provides an in-depth analysis of the state’s economic trajectory, capturing global, national, and local developments shaping Lagos’ growth outlook.

Represented by his deputy, Obafemi Hamzat, the governor described the report as more than a policy document, noting that it serves as a strategic compass for guiding economic direction and strengthening decision-making.

He added that despite global economic headwinds — including post-pandemic recovery challenges, inflationary pressures, and exchange rate fluctuations — the state has remained resilient through deliberate policies, fiscal discipline, and sustained investment in critical infrastructure.

“It is with a deep sense of responsibility and optimism that I join you today to officially launch the third edition of the Lagos Economic Development Update — LEDU 2026.

“This platform has evolved beyond a mere policy document; it has become a compass guiding our economic direction, shaping decisions, and reinforcing our commitment to building a resilient, inclusive, and prosperous Lagos,” he said.

He noted that while the global economic environment has remained unpredictable, Lagos has stayed on course through “clarity, discipline, and foresight,” anchored on the T.H.E.M.E.S+ Agenda.

According to him, the state had strengthened its fiscal framework, improved revenue generation, and invested in infrastructure critical to long-term growth.

Sanwo-Olu further highlighted progress recorded since the inception of LEDU, including the expansion of the state’s economic base driven by innovation, entrepreneurship, and digitalisation; improved efficiency in revenue systems; and sustained infrastructure development spanning roads, ports, energy, and urban planning.

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He added that continued investment in human capital remains central, as “people are the true engine of growth.”

Speaking on the theme of this year’s report, “Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity,” the governor said it reflects Lagos’ current economic priorities.

He explained that consolidating resilience involves strengthening institutions and fiscal discipline, while advancing competitiveness requires boosting productivity, innovation, and investment.

Delivering shared prosperity, he added, means ensuring growth translates into jobs, expanded opportunities, and improved livelihoods for residents.

Looking ahead, he reaffirmed the administration’s commitment to economic diversification, private sector-led growth, data-driven governance, sustainable urban development, and social inclusion.

He also stressed the importance of partnerships with the private sector, development institutions, civil society, and the international community in achieving the state’s development goals.

“As we launch this edition of LEDU, I urge all stakeholders to engage actively, strengthen collaboration, and align with our shared vision.

“We have built resilience; now we must translate it into sustained competitiveness and ensure that growth delivers tangible prosperity for every Lagosian,” he said.

Also speaking, the state Commissioner for Economic Planning and Budget, Ope George, said Lagos has demonstrated remarkable resilience in navigating both global and domestic economic challenges.

“Lagos is not just responding to economic shocks — we are building systems that make us stronger because of them,” he said, noting that deliberate policies, disciplined fiscal management, and strategic investments have reinforced the state’s position as a leading subnational economy in Africa.

He added that the state would continue to prioritise economic diversification, private sector growth, sustainable urban development, and social inclusion, stressing that growth must be measured not only by numbers but also by its impact on people’s lives.

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In his goodwill message, Chief Consultant at B. Adedipe Associates Limited, Biodun Adedipe, described the LEDU initiative as a credible framework for tracking economic performance and refining development strategies.

He noted that Lagos remains central to Nigeria’s economy, adding that its continued growth signals broader national progress.

“If Lagos works, a significant share of Nigeria’s commerce works,” he said, expressing optimism about the state’s economic future.

Meanwhile, the Chief Executive Officer of the Nigerian Economic Summit Group, Tayo Adeloju, urged the state government to prioritise affordable housing as a critical driver of shared prosperity.

He noted that high housing costs could limit upward mobility for low-income earners, stressing that making housing more accessible would enhance living standards and support inclusive growth.

Adeloju added that sustained fiscal discipline, improved service delivery, and a broader productive base would further strengthen Lagos’ position among Africa’s leading megacity economies.

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