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Nigeria’s import bills on used vehicles, popularly known as ‘tokunbo’, fell by 83 per cent year-on-year to N138.62 billion in the first half of the year, from N819.15 billion in H1’23.
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Quarter-on-quarter, a breakdown of the National Bureau of Statistics (NBS) for the review period showed that in Q1 ’24 no used vehicle was imported compared to N69.23 billion worth of used vehicles that were imported in Q1’23.
In Q2’24, the value of imported used vehicles stood at N138.62 billion, representing an 81.5 per cent decline YoY from N749.92 billion in Q2’23.
NBS noted that the used vehicles were imported mainly from the United States of America, stating: “On the other hand, total imports from America in Q2’24 stood at N971.84 billion.
Recall that last year, the federal government introduced a new set of taxes on imported vehicles, among other things. The new tax regime stipulates that imported vehicles between 2000 capacity (two litres) and 3999 capacity (3.9 litres) engine will pay an additional charge known as Import Adjustment Tax (IAT) levy of two per cent of the value of the vehicle, while vehicles with 4000 capacity (four litres) and above engines will attract IAT of four per cent of their value.
The new levy is in addition to the 35 per cent import duty and 35 per cent levy being paid by importers of vehicles. However, vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted from the IAT levy.
The government also revised the import prohibition list with the inclusion of used motor vehicles above 12 years from the year of manufacture.
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