Nigeria’s vehicle market continues to face an affordability crisis as the cost of both brand-new and used cars remains high despite a recent reduction in import-related charges.

For middle-income Nigerians, small business owners and logistics operators, vehicle ownership is increasingly becoming a major financial burden, forcing many buyers to rethink the traditional dealership model in search of more affordable options.

Data from Jiji, an online marketplace, showed that listing prices for 10-year-old economy models, such as Toyota Corolla, Nissan Almera, Honda Civic, and Hyundai Accent, average N15 million, while medium-range models, such as Toyota Camry and competitors, are priced slightly higher.

The offer prices, which have remained unchanged since late last year, reflect the impact of inflation, naira depreciation, import costs and rising operating expenses across the automotive market.

According to the platform’s analysis of the past 24 months, the average asking price of foreign-used vehicles (popularly known as Tokunbo) listed on the platform rose from about N25 million to N45 million, representing an increase of about 80 per cent.

The price of Nigerian-used vehicles also recorded a significant jump, moving from an average of N6 million to N16 million, a rise of more than 160 per cent.

The prices remain high despite the Federal Government’s recent fiscal intervention aimed at easing vehicle importation costs.

From July 2026, the government reduced the National Automotive Council (NAC) levy on used vehicles from 15 per cent to five per cent.

However, industry operators and consumers continue to contend with other charges, FX-related pressures and the newly introduced engine-size-based Green Tax, which has limited the impact of the levy reduction on final vehicle prices.

The increase in prices is also driving buyers towards online direct transactions as they seek to eliminate additional costs associated with middlemen and conventional dealership operations.

Jiji said its first-quarter 2026 data recorded a 97 per cent year-on-year increase in searches for used items, generating more than 40.2 million visits, with vehicles among the major categories driving engagement on its site.

Despite the steep rise in average asking prices, the platform said there are still relatively affordable options available.

According to the platform, about 60 per cent of vehicle listings on Jiji are priced below N20 million, providing some room for buyers operating with tight budgets.

Workhorse vehicles continue to account for a significant portion of market activity, with the Toyota Camry alone representing roughly one in every 10 car listings on the platform.

The data also indicated significant geographic differences in vehicle prices within Lagos. Listings from premium Island locations command prices that are almost twice those of vehicles listed on the Mainland on average, reflecting differences in inventories, seller profiles and market demographics.

For dealers, the rising cost of replenishing inventories had also made the conventional dealership model increasingly difficult to sustain.

Managing Director, Apex Motors, Babatunde Kushemi, said rising replacement costs and physical dealership overheads were forcing dealers to rethink how they reach customers.

He explained that the cost of importing vehicles and maintaining physical car lots ultimately feeds into retail prices, making direct digital listings an increasingly attractive option for dealers and consumers.

“As a car dealer, the huge costs of replacing our inventory have forced us to adjust our retail strategy,” Kushemi said.

“Importing cars to sit in a physical car lot incurs massive overheads that buyers cannot afford to absorb right now. So, listing directly on Jiji has helped us connect directly with serious buyers, while keeping our turnaround times realistic,” he added.

Senior Financial Analyst at Jiji, Chinedu Ezekiel, said the changing purchasing patterns reflected a broader shift in consumer behaviour.

“This behavioural change reflects a maturing market where consumers actively dictate their spending limits through direct-to-owner access and smart platform tools,” he said.

Also, Chief Operating Officer of Jiji, Maxim Makarchuk, described the development as a structural shift in Nigeria’s automotive retail market, arguing that consumers are increasingly unwilling to absorb traditional dealership mark-ups.