This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/20/2016


                                                                                                                                Unit:   USD thousands






Total Market Size





Total Local Production





Total Exports





Total Imports





Imports from the U.S.



1,162, 200


Exchange Rate:   1 USD





Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources: 
Total Local Production:   Nigerian car dealers
Total Exports:   Businessday Online
Total Imports:   Oxford Business Group and BMI International, Nigerian Car Dealers
 Imports from U.S.:   U.S. Census Bureau
According to the Oxford Business Group, Nigeria imports nearly all of the cars on its roads. Before the announcement of the Nigerian Automotive Policy in 2013, an average of 50,000 new and 150,000 used vehicles were imported each year.  However, since June 2015 when the policy was fully implemented, formal imports of new vehicles have dropped by more than 50 percent according to a December 2015 local newspaper report.    The Nigerian government introduced the policy under its National Automotive Industry Development Plan (NAIDP) in a move to resuscitate its local automotive assembly industry which has not traditionally been able to compete with imports.  Fully Built Unit (FBU) cars falling under H.S. Code 87.03 would attract a duty of 35 percent and 35 percent levy totaling 70 percent.  Also, FBU commercial vehicles falling under H.S. Codes 87.01, 87.02, 87.05, 87.07, 87.16 would attract a 35 percent duty without levy.  Local assembly plants would be allowed to import Completely Knocked Down (CKD) units at 0 percent duty, Semi Knocked Down (SKD) of H.S. Code 87.16 at 5 percent duty and FBU cars at 35 percent duty and FBU commercial vehicles at 20 percent duty without levy in numbers equal to twice their imported CKD/SKD kits. 
Japanese car models have continued to enjoy a dominant position in the Nigerian auto market. The Toyota brand for example, controls about 50 percent of all new and used cars categories due to its perceived reliability and fuel economy.  With the exception of Ford’s Explorer, Escape, Edge and Ranger models, American car brands are generally not well received.  Nissan, Toyota, Kia and have local assembly facilities in Nigeria.  According to the National Automotive Council (NAC), it had issued 12 auto assembly licenses to interested investors as at the end of 2015.
Due to the tariff barricade that the new policy poses to import vehicles, importers have drastically reduced direct shipments to Nigeria and resorted to smuggling through neighboring Benin Republic.  Consequently, the number of vehicles entering Nigeria has remained nearly as high as previous years.  The United States is the largest source of used car imports because of two key factors:  price competitiveness and the very good condition and extra features U.S-assembled vehicles come with.  Consumer demand is greatest for Japanese models made in the United States, especially the Toyota brand due to its perceived reliability and fuel efficiency. 
Sales prospects for U.S. buses are generally low due to the dominance of Asian and locally assembled brands.

Subsector Best Prospects
The increasing influx of used cars is expected to drive demand for spare parts.  In 2014, the United States exported more than $80 million worth of vehicle parts and accessories to Nigeria according to U.S. Census Bureau figures.  Car care products, chemical additives; and auto diagnostic equipment are trade opportunity areas.

Web Resources
For more sector information, e-mail:   Chamberlain Eke, Commercial Specialist:

Local Trade Shows
Lagos Motor Fair and Auto Parts Expo
May 1-4, 2016
Federal Palace Hotels
Victoria Island, Lagos

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More Information

Nigeria Automotive Trade Development and Promotion