The National Bureau of Statistics (NBS) shows that Nigeria spent the sum of N1.08 trillion to import used cars and motorcycle in one year (October 2018 – September 2019).
According to reports gathered, used cars and motorcycle importation into Nigeria rose from N252.3 billion in Q4 2018 to N301.8 billion in q3 2019.
Nigeria remains a large import-dependent country as the nation’s import bill between October 2018 and September 2019 rose to N15.19 trillion while the country’s export for the same period stood at N18.87 trillion.
This implies that the country’s trade balance summed up to be N3.68 trillion showing that:
The importation of used cars gulped N676.3 billion during the period while the amount spent on motorbike importation stood at N411.3 billion.
This also says that Nigeria’s import amounting to N15.19 trillion, used cars and motorcycle importation accounted for 7% of the country’s total import.
According to the reports, most motorbikes imported into the country are completely Knocked Down . Basically a CKD form is where disassembled item parts require assembling by the end-user or the re-seller.
This means goods are shipped in CKD form to reduce freight charges on the basis of the space occupied by the volume of the item.
On the other hand, used cars imported are either with diesel or semi-diesel engine of cylinder capacity.
Further details provided by the Bureau show that the used imported cars came from countries like the United States, Italy, Belgium, Germany and Canada.
However, motorcycles (CKD) imported into Nigeria are basically from India and China.
In recent years, ride and motorcycle-hailing platforms are one of the two fastest-growing businesses in Nigeria.
As technology keeps evolving, so is the ride-hailing industry. Today, spread all over major commercial cities across the country are Uber, Bolt, OgaTaxi, GidiCab and many others, all competing in the ride-hailing industry.
On the other hand, the bike-hailing platforms are equally worth the mention, with GoKada, Opay, Max.NG and so on.
Hence, as the ride-hailing industry continues to expand, investors spend trillions of naira to import most of the items.
It is noteworthy to state that the industry expansion is indeed a welcome development as this creates thousands of jobs for Nigeria’s teeming population.
However, one would wonder why Nigeria’s automobile industry still remains at a standstill despite the huge growth potential it presents to the country.
Despite the upward reviews of tariffs and duties imposed on the importation of cars and motorcycles by the Federal Government since 2014, the story continues as car importation figures keep increasing.