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Thursday , October 29 2020

Importation of used vehicle surged by 42% and reached a total sum of N1.28trillion

In Nigeria, imported used vehicle and motorcycles in one year reached a total sum of N1.28 trillion in one year. The National Bureau of statistics disclosed this statistics. Between (Q3 2019 – Q2 2020) Nigeria recorded a sum of N1.28 trillion as the value of imports for used vehicles and motorcycles, compared to N899 billion recorded in the corresponding period (Q3 2018 – Q2 2019), which means a significant increase of 42 per cent. The Nigeria economy has always been an import-dependent economy and this is as a result of their dependence on importation of manufactured goods. N799.5 billion used vehicle imported into Nigeria was estimated during the period under review, compared to N564.9 billion in the corresponding period which implies that imported used vehicle surged by 42%. N477.1 billion used motorcycle Imported into Nigeria was estimated during the period of review, compared to N335 billion recorded in the corresponding year which implies a 42% increased. But, most motorbikes imported into Nigeria came into the country in their disassembled state, and are required to be assembled by the end-user or the reseller.

A close observation of the report shows that the imported used cars are from United States, Netherlands, Italy, Belgium, Germany and Canada. The sudden surge in the importation of used vehicles and motorcycle in Nigeria has been largely driven by e-hailing car and bike services, one of the two fastest-growing businesses in Nigeria. The increasing adoption of technology in the business sector has a significant impact on the ride- hailing industries in Nigeria. Presently, all over some cities in the country are the Bolt, OgaTaxi, GidiCab and Uber and some other companies all competing. On the other hand, the bike-hailing platforms are equally worth the mention, with GoKada, Opay, Max.NG to mention a few.

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Another major factor increasing the need for ride-hailing services include increasing population, increasing urbanization and also because the world is becoming a digital place. The Nigerian economy seems to be corroborated by a fierce regulation and certitude in policy. investors are continually faced with severe regulatory system. Bike-hailing startups operating in Lagos State saw their business dissolve after the government put an end to commercial motorcycling in 15 local government areas of Lagos State February 2020. A decision that was followed by a wide protest.

In addition, car-hailing start ups has been pestering the government for months over licensing fees and disputed levies. Of recent, the Lagos state government announced that ride-hailing operators will pay a levy of N20 known as road improvement fund, on each trip their drivers make in a day starting from August 27. While the increased demand for vehicles and motorcycle in the country is expected to indirectly attract investors and grow the automobile industry, trillions are continually being spent year on year to meet the country’s vehicles demand deficit. In spite of the effort of the present government to get Toyota and some other manufacturing companies into the country, the pace has been slowed down due to stunted growth of the country as a whole.

About Adegboyega Johnson

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