Nigeria experienced a significant decline in passenger vehicle imports in 2024, with total import value dropping to N1.26 trillion from N1.47 trillion in 2023, representing a 14.3% decrease according to the National Bureau of Statistics (NBS).

This decline follows a substantial import surge in 2023 when vehicle imports more than doubled compared to 2022 levels. The downturn reflects growing economic pressures that forced both businesses and consumers to reduce non-essential spending, with many Nigerians turning to the local second-hand market as an alternative.

Import Trends Over Five Years

Nigeria's vehicle import patterns have shown considerable volatility since 2020:

- 2020: N546.79 billion

- 2021: N695.40 billion

- 2022: N655.69 billion (slight decline)

- 2023: N1.47 trillion (124.7% increase)

- 2024: N1.26 trillion (14.3% decrease)

Key Economic Factors Behind the Decline

Two major economic challenges contributed to the reduced imports:

Record-High Inflation

Inflation reached a nearly three-decade high of 34.8% in December 2024, eroding purchasing power across the country. The annual average inflation rate for 2024 stood at 33.2%, significantly higher than the 24.7% recorded in 2023. This persistent rise in consumer prices forced many Nigerians to prioritize essential expenses over major purchases like vehicles.

Severe Currency Depreciation

The naira experienced dramatic depreciation against major currencies:

- Official exchange rate: N1,535/$ at the end of 2024, representing a 40.9% depreciation from N907.11/$ in late 2023

- Parallel market: N1,660/$ (26.8% depreciation from N1,215/$ at the end of 2023)

The World Bank identified the naira as one of the worst-performing currencies in Sub-Saharan Africa in 2024, citing strong dollar demand, limited forex inflows, and delays in foreign exchange disbursements by the Central Bank of Nigeria as contributing factors.

Despite the CBN's introduction of new forex policies intended to improve market transparency and attract foreign investment, the increased cost of foreign exchange continues to constrain import-dependent sectors like the automotive industry.​​​​​​​​​​​​​​​​