Nigeria’s importation of passenger motor cars rebounded strongly in 2025, buoyed by relative stability in the foreign exchange market that eased pressure on dealers and buyers, according to foreign trade data from the National Bureau of Statistics (NBS).

NBS figures show that the value of passenger motor car imports rose to ₦1.01tn in the first nine months of 2025, up from ₦894.09bn recorded in the corresponding period of 2024. This represents an increase of ₦113.15bn, or 12.66 per cent year-on-year, signalling a clear turnaround after months of subdued demand driven by currency volatility and rising landing costs.

A breakdown of the quarterly data indicates that the recovery gained momentum only in the second half of the year. In the first quarter of 2025, passenger motor car imports were valued at ₦224.58bn, compared with ₦238.73bn in the same period of 2024—a decline of ₦14.15bn, or about 5.9 per cent. This suggested that importers were still contending with the effects of earlier exchange rate instability.

The second quarter followed a similar pattern. Imports between April and June 2025 stood at ₦254.67bn, down from ₦291.93bn in the corresponding quarter of 2024. The ₦37.26bn difference translated to a contraction of roughly 12.8 per cent, indicating that caution persisted despite gradual improvements in foreign exchange liquidity.

The trend reversed sharply in the third quarter. Between July and September 2025, the value of passenger motor car imports surged to ₦527.98bn, from ₦363.42bn in the same period of the previous year. This represented an increase of ₦164.56bn, or about 45.3 per cent, more than offsetting the declines recorded in the first half of the year and driving the overall nine-month growth.

Country-level data highlights the scale of the rebound. In the first quarter of 2025, imports of used vehicles with diesel or semi-diesel engines and cylinder capacity above 2,500cc from the United States were valued at ₦93.51bn, making the US Nigeria’s largest source of passenger vehicles during the period. South Africa followed with ₦25.84bn worth of vehicles for goods transport, while imports from Angola and Liberia were marginal.

In the second quarter, imports from the United States remained elevated at ₦99.18bn, while South Africa accounted for ₦21.43bn. Liberia and Equatorial Guinea contributed smaller values, reflecting limited volumes.

The surge became more pronounced in the third quarter. Used diesel vehicles above 2,500cc imported from the United States alone were valued at ₦184.21bn, nearly double the level recorded in the first quarter. Additional imports included ₦38.15bn worth of used vehicles with engine capacity between 1,500cc and 2,500cc from the US market. The United Arab Emirates also emerged as a key source, with imports valued at ₦13.67bn, alongside ₦12.68bn worth of petrol-engine vehicles imported in completely knocked down form.

Overall, vehicles traced to the United States were valued at about ₦415.05bn in the first nine months of 2025, meaning the US accounted for 41.21 per cent of Nigeria’s total passenger motor car imports during the period. South Africa followed at a distant ₦47.27bn, representing 4.69 per cent, while the UAE accounted for about ₦26.35bn, or 2.62 per cent of the nine-month total.

In aggregate, passenger motor car imports in the first half of 2025 were ₦51.41bn lower than in the same period of 2024. However, the third quarter alone exceeded its 2024 equivalent by ₦164.56bn, explaining why the nine-month import value closed higher by more than ₦113bn.

Analysts attribute the rebound to renewed confidence among importers as exchange rate volatility eased and access to foreign exchange improved, even though vehicle prices remain elevated. The upswing in vehicle imports aligned with developments in the FX market during the third quarter of 2025.

According to an economic and financial markets review by FCSL Research, the naira maintained a strong and stable performance in Q3 2025, appreciating by 3.2 per cent to ₦1,480.66/$, supported by improved dollar inflows, sustained interventions by the Central Bank of Nigeria (CBN), and a $2.87bn increase in external reserves to $42.23bn.

The report noted that FX trading remained within a narrow ₦1,480–₦1,540/$ band during the quarter, describing it as one of the most orderly periods for the naira since FX market reforms began. Analysts expect the currency’s stability to extend into the fourth quarter, backed by sustained portfolio inflows, steady oil earnings, and better coordination between monetary and fiscal policies, although mild volatility may arise around import cycles or global oil price movements.

CardinalStone Research projected that the naira would close the year within the ₦1,400/$–₦1,450/$ range, citing moderating inflation, a sustained current account surplus, and a steady build-up in FX reserves as supportive factors.

Market data from the CBN show that in September 2025, the naira traded below the ₦1,500/$ threshold for 10 consecutive sessions at the official market, closing as strong as ₦1,480/$. At the parallel market, it also recorded modest gains, appreciating to an average of ₦1,510/$.

Industry stakeholders have confirmed the improvement in car import volumes. The PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, Mr Thomas Alor, said vehicle importation had risen noticeably this year compared to last year, citing a significant increase in the number of vehicles arriving at ports.

Similarly, the Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, Mr Abayomi Duyile, said the surge was evident, partly due to changes in customs duty assessments on vehicles. He explained that the introduction of the 846 valuation method reduced duties by factoring in depreciation, mileage, and wear and tear, bringing assessments closer to market realities.

An official at Ports & Terminal Multipurpose Limited also linked the rebound to exchange rate stability. “Unlike before, the exchange rate is now more predictable. Importers can plan ahead, inflation is slowing, and businesses are finding room to expand. This has encouraged more vehicle importation compared to the uncertainty that plagued the market in 2023 and 2024,” the official said.