Nigeria depends on used vehicles to meet local demand
As the year is coming to an end, a total of 8,300 used vehicles have been shipped into the nation’s roll-on roll-off port at Tincan Island Port within the last two months.
The vehicles were conveyed to the port by 16 vessels from United States and Europe through direct shipments.
Already, importation of used vehicles to the port has grown 4.6 per cent (73, 244 units) in 2017.
In December alone, Nigerian Ports Authority (NPA)’s shipping position revealed that 3,550 units were shipped to the Port and Terminal Multi-services Limited (PTML) by 10 vessels led by Grande Coastal Davoria with 350 units; Grand Lagos, 450 units; Grande Togo, 300 units; Grande Tema, 400units; Grande Luanda, 400 units; Grande Guinea, 350 units; Rep Argentian, 300 units; Paran, 300 units; Grande Abdjan, 400 units; and Grande Congo, 300 units.
Also, between October and November, Rep Argentina discharged 300 units; Rep Delibrasile, 350 units; Grand Cotonou, 400 units; Grand Dakar, 400 units, Pagna, 400 units and Grande Costa Devorte, 300 units.
It would be recalled that between June 2016 and April 2017, the country imported 78, 065 used vehicles as consumers demand for Japanese models made in the United States, especially the Toyota brands.
Also, NPA’s records revealed that in June 2016, importers shipped 10,000 vehicles to the country; July, 10,000; August, 5,000; September, 12,000; October, 11,000; November, 13,000 and December, 12,000.
Owing to inadequate local vehicle production, Nigeria is still highly dependent on used vehicles.
According to Deloitte Africa, passenger vehicles constitute the second-largest import category in the country.
It noted that overall annual automotive-related imports stood at $6.9 billion, while passenger vehicle imports stood at $2.9 billion, accounting for approximately 11.5per cent of Nigeria’s total imports.
The firm explained that a large share of second hand vehicles were imported from the United States (U.S.), given that vehicle specifications in this market were more in line with the demand and taste of Nigerian consumers.
It would be recalled that before the hike of import duties on second-hand vehicles, Nigeria imported more than 100,000 cars per year from the US.
However, in 2015, imports from the US plummeted to less than 40, 000 units because of Federal Government’s auto policy.
In addition to Nigeria, the Port of Cotonou in Republic of Benin is a key transit point for second hand vehicles destined for Nigerian market.
It is estimated that 85 per cent of Benin’s used vehicle imports end up in Nigeria.
In 2013, the European Union (EU) and the U.S. exported approximately 300,000 cars to Benin.
Based on the import figures for Benin, an additional 255,000 units of used cars from the EU and the U.S. entered Nigeria via Benin within the same period.