As Nigerian importation deficits increases, the country has spent a total of N601.51 billion on the importation of motor vehicles in the half-year of 2021.
Brand News Day reports that a report published by the National Bureau of Statistics revealed that the recently released foreign trade report highlights the Nigeria Importation of vehicles.
This represents a 15% increase compared to N523.57 billion recorded in the corresponding period of 2020, despite the reduced import duties on vehicles.
Vehicle imports accounted for 4.4% of total imports of N13.8 trillion recorded in the period under review. Meanwhile, a total of N1.09 trillion was spent on vehicle imports in the previous year.
Going further, in the second quarter of 2021, imports of passenger cars grew by 14.03% to N311.63 billion compared to the corresponding quarter of 2020 where imports for the same item stood at N273.28 billion.
Nigeria’s Importation Of Vehicles Hits N601.51 Billion In H1 2021
Over the past three years, Nigeria has steadily increased its import of vehicles by 195% from N371.98 billion in 2018 to N1.09 trillion in 2020. This could be as a result of an increase in cab-hailing services and technologies, like Bolt, Taxify and Uber.
By extension, as the imports of motor vehicles increased in Q2 2021, it made up 39% of the total transport equipment and parts imported during the same period, which is N798.51 billion.
It is also worth noting that Nigeria imported used vehicles, otherwise known as “Tokunbo” worth N172.1 billion in the second quarter of the year, being the third highest imported item by value.
Notably, surging vehicles importation hinders several positive effects on the operating environment or encourage vehicle imports.