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Home Business & Finance Business

Nigeria, US vehicle imports hit $518m in six months

Quadri Olaitan by Quadri Olaitan
August 24, 2025
in Business
0
Nigeria US Vehicle Imports

Nigeria US Vehicle Imports reached \$518m in H1 2025, led by passenger cars, exposing weak local assembly compared to South Africa’s auto sector

Nigeria US Vehicle Imports surged to \$518 million between January and June 2025, according to figures released by the US Census Bureau and Bureau of Economic Analysis.

Also read: Nigeria US visa policy clarified by Tinubu’s aide amid reciprocity row

Passenger cars accounted for the bulk of shipments, valued at \$379 million, or 73 per cent of the total. Vehicle parts followed with \$104 million, while trucks, buses, and special-purpose vehicles made up \$35 million.

A month-by-month breakdown showed relative stability in the second quarter. In May, Nigeria imported \$95 million worth of vehicles and parts, followed by \$92 million in June.

Passenger cars slipped from \$70 million in May to \$67 million in June, while parts eased slightly from \$19 million to \$18 million. Trucks and buses dipped from \$7 million to \$6 million.

At the current average of \$86 million per month, Nigeria is on track to cross the \$1 billion mark in vehicle imports from the US by the end of 2025.

The figures underline Nigeria’s heavy reliance on fully built cars shipped directly from US ports, exposing the weakness of its local auto assembly industry.

By contrast, South Africa—though importing a similar \$525 million total in the same period—relied overwhelmingly on parts, which made up 82 per cent of its imports. Passenger cars were just \$61 million, far below Nigeria’s level.

South Africa’s robust assembly plants absorb imported parts for production and servicing, while Nigeria’s fragmented assembly base forces reliance on retail-ready cars.

Trucks and buses, while relatively small at \$35 million, remain crucial to Nigeria’s logistics, construction, and transport sectors.

The trend also comes against a backdrop of declining car imports in 2024, when the National Bureau of Statistics reported a 14.3 per cent drop to ₦1.26 trillion, down from ₦1.47 trillion in 2023.

Rising inflation, naira depreciation, and foreign exchange pressures made vehicle purchases more expensive, forcing consumers and businesses to cut back.

With 2025 now showing strong inflows despite economic headwinds, Nigeria’s dependence on foreign-built cars highlights the urgent need for stronger policies to revive domestic auto manufacturing.

Also read: Nigeria Customs contraband seizure hits ₦1.4bn in major crackdown

The Nigeria US Vehicle Imports data points to a worrying structural imbalance—steady demand for cars but weak local capacity to supply them.

Quadri Olaitan
Quadri Olaitan

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