For veteran car importer David Tope, Nigeria’s once-lucrative vehicle import business has ground to a halt. By early 2025, he was forced to pause operations due to skyrocketing import costs, driven by persistent naira devaluation and steep customs duties.
Tope, who previously imported up to five vehicles weekly from the U.S. and Canada, now describes the market as unsustainable. "It’s not just the country, but our inflation rate is so high on duties and the naira devaluation — it’s affecting importing from any country at all," he said. He urged the Nigerian government to urgently reconsider import duties to keep the auto trade viable for everyday dealers.
Adding to the strain, the United States has announced a 25% tariff on vehicle imports, set to begin in April 2025. Although the policy targets vehicles entering the U.S., Nigerian dealers are bracing for ripple effects.
Many rely heavily on used car exports from the U.S. — a move that could now become cost-prohibitive.
“If the cars are being imported to the U.S. and then exported to us, the inflation rate will be unbearable,” Tope warned, underlining the urgent need for a more stable and competitive import policy in Nigeria’s auto sector.
Importers aren't the only ones affected. Vehicle prices in Nigeria have jumped nearly 400% over the past two years, putting car ownership out of reach for many consumers.
Nigerians such as Emmanuel Aaron and Akintunde Akinmolaye worry the U.S. tariff will exacerbate price woes.
"Honestly, the cost has gone so, so high that my interest in buying cars has to be suspended," Aaron said.
"We know that U.S. cars are built with quality, care, and comfort compared to other places," said Akinmolaye, "but in terms of cost now, cost may make one jettison all those preferences."