Nigeria’s passenger vehicle imports staged a notable comeback in 2025, buoyed by calmer conditions in the foreign exchange market that eased pressure on both auto dealers and buyers, official foreign trade data from the National Bureau of Statistics (NBS) has shown.
Figures released by the NBS indicate that the value of passenger motor car imports climbed to N1.01 trillion in the first nine months of 2025, up from N894.09 billion recorded in the same period of 2024. This represents an increase of N113.15 billion, or 12.66 per cent year-on-year, marking a clear recovery after a prolonged slump triggered by exchange rate instability and rising import costs.
A breakdown of the data reveals that the rebound was uneven, with weak performance in the first half of the year before a sharp turnaround in the third quarter. In the first quarter of 2025, vehicle imports were valued at N224.58 billion, compared with N238.73 billion in the corresponding period of 2024—a decline of N14.15 billion, or 5.9 per cent. This suggested that importers were still contending with the lingering effects of earlier FX volatility.
The slowdown persisted into the second quarter. Between April and June 2025, imports stood at N254.67 billion, down from N291.93 billion in the same quarter of the previous year. The shortfall of N37.26 billion, equivalent to a 12.8 per cent contraction, reflected continued caution among market players despite gradual improvements in FX liquidity.
Momentum, however, shifted decisively in the third quarter. From July to September 2025, passenger car imports surged to N527.98 billion, a sharp rise from N363.42 billion recorded in the same period of 2024. The increase of N164.56 billion, or 45.3 per cent, more than compensated for the earlier declines and was the main driver of the nine-month growth.
Country-specific figures highlight the scale of the recovery. In the first quarter of 2025, Nigeria imported used diesel and semi-diesel vehicles with engine capacity above 2,500cc worth N93.51 billion from the United States, making it the country’s largest source of passenger vehicles at the time. South Africa followed with N25.84 billion worth of vehicles for goods transport, while imports from Angola and Liberia were relatively insignificant.
The pattern remained largely unchanged in the second quarter, with imports from the US valued at N99.18 billion and South Africa accounting for N21.43 billion. Contributions from Liberia and Equatorial Guinea were modest, reflecting lower shipment volumes.
The third quarter recorded a more pronounced spike. Imports of used diesel vehicles above 2,500cc from the US alone were valued at N184.21 billion—almost double the first-quarter figure. Additional imports included N38.15 billion worth of used vehicles with engine capacities between 1,500cc and 2,500cc from the US. The United Arab Emirates also emerged as a notable source, supplying vehicles valued at N13.67 billion, alongside N12.68 billion worth of petrol-engine vehicles imported in completely knocked-down form.
Overall, vehicles traced to the United States were valued at about N415.05 billion in the first nine months of 2025, accounting for 41.21 per cent of Nigeria’s total passenger car imports during the period. South Africa ranked a distant second, with imports worth N47.27 billion, or 4.69 per cent of the total, while the UAE contributed N26.35 billion, representing 2.62 per cent.
In aggregate terms, imports in the first half of 2025 were N51.41 billion lower than in the same period of 2024. However, the strong third-quarter performance—where imports exceeded the previous year’s level by N164.56 billion—pushed the nine-month total higher by more than N113 billion.
Market analysts attribute the resurgence to renewed confidence among importers following improved FX stability and better access to foreign exchange, even as vehicle prices remain elevated. The trend mirrors developments in the FX market during the third quarter of 2025.
According to an economic and financial markets review by FCSL Research, the naira delivered one of its strongest and most stable performances in recent years during Q3 2025, appreciating by 3.2 per cent to N1,480.66 per dollar. The firm attributed this to stronger dollar inflows, sustained interventions by the Central Bank of Nigeria (CBN), and a $2.87 billion increase in external reserves to $42.23 billion, which collectively helped stabilise the market.
FCSL noted that FX trading during the quarter was largely contained within a narrow N1,480 to N1,540 per dollar range, supported by robust oil revenues, the clearance of FX forward obligations, and renewed foreign portfolio inflows. It described the period as one of the most orderly for the naira since the introduction of FX market reforms.
Looking ahead, the firm expects the currency’s relative stability to extend into the fourth quarter, underpinned by steady oil earnings, continued portfolio inflows, and improved coordination between monetary and fiscal authorities. However, it cautioned that mild volatility could still arise around peak import cycles or fluctuations in global oil prices.
Similarly, analysts at CardinalStone Research project that the naira will close the year within the N1,400/$ to N1,450/$ range, citing easing inflationary pressures, a sustained current account surplus, and ongoing accumulation of FX reserves as key supportive factors.
Recent market data supports these projections. In September 2025, the naira traded below the N1,500/$ mark for 10 consecutive sessions at the official market for the first time in over six months, closing at N1,497/$ on September 15 before strengthening further to N1,480/$. The parallel market also recorded modest gains, with the currency appreciating to an average of N1,510/$.
Financial institutions including AIICO Capital and Cowry Asset Management have linked the currency’s improved performance to stronger liquidity from local participants, oil-related inflows, offshore portfolio investments, and consistent CBN interventions, expressing optimism that near-term stability will be maintained.
Economists note that the earlier slump in vehicle imports reflected not just weak demand, but deeper structural challenges in the economy, including high inflation, rising taxes, and limited access to credit. The recent rebound, they say, suggests that easing FX pressures may be providing some relief to import-dependent sectors.
