The National Bureau of Statistics (NBS) has unveiled a significant development in Nigeria’s import landscape, with used cars worth N733.9 billion entering the country during the second quarter of 2023.
In a report titled “Foreign Trade in Goods Statistics (Q2 2023),” the NBS highlighted the remarkable increase in used car imports, ranking them as the second most imported product during this period, just behind Premium Motor Spirit (PMS), commonly known as petrol.
This quarter marks the first instance where used vehicle imports, specifically those with diesel or semi-diesel engines and cylinder capacities exceeding 2500 cc, have taken the second spot among the most imported products, surpassing natural gas, which now stands in third place.
This surge in used car imports comes despite the federal government’s decision to raise car import duties by 40 percent and impose a two percent Import Adjustment Tax (IAT) on vehicles aged beyond 12 years.
The report also revealed that Nigeria’s total trade in the second quarter of 2023 amounted to N12.7 trillion, reflecting a 5.77 percent increase compared to the preceding quarter. However, it represented a 7.60 percent decline when compared to the same quarter in 2022.
Nigeria’s exports during this period reached N7 trillion, showing an 8.15 percent increase compared to the previous quarter. Crude oil exports played a pivotal role, accounting for N5.5 trillion (79.63 percent), while non-crude oil exports amounted to N1.4 trillion.
Meanwhile, total imports reached N5.7 trillion, indicating a 2.99 percent increase from the previous quarter. Agricultural goods imports amounted to N454.8 billion, marking a slight decrease of 3.51 percent compared to Q1 2023 and a 2.07 percent decrease compared to the same quarter in 2022 (N464.4 billion).
Nigeria’s top export destinations during this period included the Netherlands, with N788.8 billion (11.24 percent of total exports), followed by the United States of America, Indonesia, France, and Spain. Together, these five countries accounted for 44.23 percent of Nigeria’s total exports in Q2 2023.
Conversely, China was the primary source of Nigeria’s imports, with goods valued at N1.2 trillion (22.17 percent of total imports), followed by the United States, Belgium, India, and the Netherlands.
