Research Update On Used Cars Market In Nigeria

By LuckyManGlobal LLC (Best in Sales & Transportation of Used Cars to Nigeria)

The Nigerian used car market is experiencing both challenges and growth. While the overall market faces issues due to rising prices and economic uncertainty, it’s also seeing increased demand for used vehicles due to affordability and the desire for more sustainable transportation options.

Key Trends in the Nigerian Used Car Market:
  • Price Increases:

    The cost of used cars, particularly “Tokunbo” (foreign used) vehicles, has significantly increased in the Nigerian market. For example, one report notes a near 100% increase in Tokunbo car prices as of July 2023. Another article highlights that average vehicle prices have jumped by over 126% in the past eight years, making it difficult for middle-income earners to afford new cars. 

  • Urbanization and Infrastructure:

    Increasing urbanization and improvements to road networks are driving demand for vehicles, especially in urban centers. 

  • Digital Platforms:

    Online marketplaces are becoming increasingly popular for buying and selling used cars, offering consumers greater convenience and access to a wider range of options. 

  • Sustainability:

    There’s growing consumer awareness about sustainability, with used cars seen as a more eco-friendly option compared to new vehicles. 

  • Specific Car Models:

    Certain models like Toyota Corolla, Camry, and RAV4 are popular due to their reliability and resale value. 

  • Challenges:

    The Nigerian automotive market faces challenges including inadequate infrastructure, limited access to financing, and policy inconsistencies. 

  • EV Market:

    The electric vehicle (EV) market is still developing in Nigeria, with limited charging infrastructure and relatively low adoption rates in the first quarter of 2025. 

Future Outlook:
  • The Nigerian used car market is projected to reach USD 1.90 billion by 2030, growing at a CAGR of 8.90%. 
  • The market is expected to benefit from increased urbanization, improved road networks, and a growing middle class. 
  • Technological advancements in online auctions and virtual car tours are likely to further boost the market. 
  • The used car market’s resilience in the face of economic challenges suggests that demand will remain strong in the coming years. 

LuckyManGlobal LLC (Best in Sales & Transportation of Used Cars to Nigeria). Get in touch with us.