Nigeria’s passenger motor car imports staged a notable recovery in 2025, rebounding to ₦1.01tn in the first nine months of the year as improved foreign exchange stability eased pressure on dealers and buyers.

Foreign trade data from the National Bureau of Statistics shows that car imports rose from ₦894.09bn in the same period of 2024, reflecting a year-on-year increase of ₦113.15bn. The rebound marks a turnaround after a prolonged slowdown driven by exchange rate volatility, high landing costs and weak consumer confidence.

The recovery was uneven across the year. Imports remained subdued in the first half of 2025, indicating that the market was still adjusting to earlier currency shocks. Passenger motor car imports in the first quarter stood at ₦224.58bn, down from ₦238.73bn in the corresponding period of 2024. The second quarter followed a similar pattern, with imports valued at ₦254.67bn compared with ₦291.93bn a year earlier, as cautious sentiment persisted despite gradual improvements in foreign exchange liquidity.

Momentum shifted decisively in the third quarter. Between July and September 2025, passenger motor car imports surged to ₦527.98bn, up sharply from ₦363.42bn in the same period of 2024. The ₦164.56bn increase more than offset the declines recorded earlier in the year and became the main driver of the overall nine-month growth.

Country-level data highlights the scale of the rebound. The United States remained Nigeria’s dominant source of passenger vehicles throughout the period. In the first quarter, imports of used diesel or semi-diesel vehicles with engine capacity above 2,500cc from the US were valued at ₦93.51bn. Imports from the US remained elevated in the second quarter at ₦99.18bn, before jumping significantly in the third quarter, when used diesel vehicles above 2,500cc alone were valued at ₦184.21bn.

Additional inflows in the third quarter included ₦38.15bn worth of used vehicles with engine capacity between 1,500cc and 2,500cc from the US, alongside rising shipments from the United Arab Emirates. Vehicles imported from the UAE during the period were valued at ₦13.67bn, while petrol engine vehicles imported in completely knocked down form were valued at ₦12.68bn.

Overall, vehicles traced to the US were valued at about ₦415.05bn in the first nine months of 2025, accounting for 41.21 per cent of Nigeria’s total passenger motor car imports. South Africa followed at a distant level with imports valued at ₦47.27bn, while the UAE contributed about ₦26.35bn, largely driven by third-quarter activity.

The data shows that while imports in the first half of the year were ₦51.41bn lower than the same period of 2024, the strong third-quarter performance swung the balance, allowing the nine-month total to close higher by more than ₦113bn.

Analysts link the rebound to improved confidence in the foreign exchange market. According to FCSL Research, the naira maintained a strong and stable performance in the third quarter of 2025, appreciating by 3.2 per cent to ₦1,480.66 to the dollar. The firm attributed the stability to improved dollar inflows, sustained interventions by the Central Bank of Nigeria and a $2.87bn increase in external reserves to $42.23bn.

“The naira maintained a strong and stable performance in Q3 2025, appreciating by 3.2 per cent to ₦1,480.66/$ as improved dollar inflows, consistent Central Bank of Nigeria interventions and a $2.87bn rise in external reserves to $42.23bn anchored market confidence,” FCSL Research stated.

The firm noted that foreign exchange trading remained within a narrow ₦1,480 to ₦1,540 per dollar band during the quarter, supported by robust oil receipts, the clearance of FX forwards and renewed foreign portfolio inflows. It described the period as one of the most orderly quarters for the naira since foreign exchange market reforms began.

Also Read: Nigeria’s Q3 trade surplus slips to ₦6.69tr as import pressures grow

Looking ahead, analysts expect relative stability to hold into the final quarter of the year, supported by steady oil earnings and coordinated monetary and fiscal policies, although they cautioned that mild volatility could still emerge around import cycles or global oil price movements.

CardinalStone Research also projected further support for the currency, citing moderating inflation, a sustained current account surplus and continued reserve build-up. The firm expects the naira to close the year within the ₦1,400 to ₦1,450 per dollar range.

At the ports, industry players say the impact of exchange rate stability is already visible. An official at Ports and Terminal Multipurpose Limited attributed the surge in car imports to improved predictability in the foreign exchange market, which has allowed importers to plan more effectively.

“Unlike before, the exchange rate is now more predictable. Importers can plan ahead, inflation is slowing, and businesses are finding room to expand. This has encouraged more vehicle importation compared to the uncertainty that plagued the market in 2023 and 2024,” the official said.

Freight forwarders and customs agents have also confirmed the trend. The PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, Thomas Alor, said vehicle arrivals at the ports have increased significantly compared with last year.

Similarly, the Apapa Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, Abayomi Duyile, said changes to customs valuation methods have helped ease costs for importers.

“Last year, car clearance was slowed because duties were extremely high. With the introduction of the 846 valuation method, duties were reviewed downward. Customs now factor in depreciation, mileage and wear and tear, which has brought valuations closer to market realities,” he said.

Together, the data and industry feedback suggest that while challenges such as high prices and limited credit access remain, improved foreign exchange stability has reignited activity in Nigeria’s car import market, reversing the slump seen in previous years.

Meiza Nigeria