Price of imported 'Tokunbo' cars increase by 100% as Customs hike import duties

Recall the Nigerian Customs Service, NCS had in 2022, imposed a 15% National Automobile Commission (NAC) levy on imported used vehicles and the volume of imported vehicles soon nosedived while their prices skyrocketed after the levy was imposed on importers.

Nigerians currently looking to purchase some of these imported cars have been shocked to learn about the sharp spike in prices across some car shops.

Different checks across most of the car shops revealed that the car of choice in Nigeria, most of which are from the Toyota brand have all added about a million naira higher than the former prices.

According to some of the car dealers interviewed by The Punch, Toyota Corolla models produced between 2005-2007 were sold between ₦1.9 million and ₦2 million in 2021. The same Toyota models are now sold between ₦3.8 million and ₦4 million.

A 2004 Model Honda Accord sedan was sold for between ₦1.4 million and ₦1.6 million in 2021 while the price of the 2008 model of the same brand was ₦2 million.

The same 2004/2005 model of Honda Accord currently goes for between ₦2.9 million and ₦3.2 million while the 2008 model currently costs between ₦3.2 million and ₦3.9 million.

According to the National Bureau of Statistics, NBS, the number of ‘Tokunbo’ cars imported into Nigeria in the first half of 2022 dropped by ₦177.2 billion. A report by TheCable also shows Nigerians spent ₦346.2 billion on the importation of ‘Tokunbo’ cars in 2021.

During the same review period in 2022, the value of imported cars dropped by 51.2% to ₦169 billion. Most car dealers blamed the increased Customs duty charges and high exchange rates for the high cost of ‘Tokunbo’ cars.