1. Basic situation

The Federal Republic of Nigeria (referred to as Nigeria) is a country in southeastern West Africa. The capital is Abuja. It has a land area of 924,000 square kilometers and a population of 227.713 million. It is the largest economy in Africa. According to statistics from the International Monetary Fund, in 2024, Nigeria's GDP will be US$199.7 billion, a growth rate drop of 45.1%. The population is approximately 227.71 million, and the per capita GDP is US$824. Nigeria is China's largest engineering contracting market, second largest export market, third largest trading partner and major investment destination country in Africa. According to China customs data, in 2024, the bilateral trade volume between China and Nepal will reach US$21.88 billion, a year-on-year decrease of 2.9%. Among them, China's exports to Nigeria were US$18.90 billion, a year-on-year decrease of 6.3%; China's imports from Nigeria were US$2.99 billion, a year-on-year increase of 25.8%. On September 3, 2024, under the joint witness of the heads of state of China and Nigeria, Zheng Zhajie, Director of the National Development and Reform Commission, signed four cooperation documents with relevant Nigeria departments, including the cooperation plan for the joint construction of the "Belt and Road".

2. Automobile market situation

At present, the Nigeria automobile market is mainly for foreign investment in assembly and production and direct import of complete vehicles from abroad. In 2024, the growth of the Nigeria automobile market will be sluggish, only growing by 0.4%, of which electric vehicles will grow by 1.3%. From a brand perspective, Toyota maintained its leading position, with sales increasing by 20.1%. Kia performed best among the top 10, with an increase of 86.2%. Overall, Japanese cars have a market share of nearly 60% in luxury cars, economy cars and SUVs.

2018-2024 New car sales in Nigeria in 2009

In terms of used cars, used car transactions account for more than 95% of Nigeria's car market. The annual used car transaction volume in Nigeria is about 700,000, and more than 200,000 used cars are imported every year. Mainly from the United States, Japan, South Korea, Germany, France and other countries. The best-selling used cars in the local area are Toyota, Honda, Nissan, Mitsubishi and other brands. Nigeria mainly imports used cars through the ports of Apapa and Lagos. Imported second-hand cars (commonly known as Tokunbo in Nigeria) are popular for their affordability and reliability, and for a long time Nigeria will be dominated by low-priced cars and second-hand cars.

3. Policies and regulations on used car import

1. Import policy

Nigeria can only import left-hand steering vehicles. In order to reduce environmental pollution, Nigeria issued the Customs "Consumption Tax (Change) Amendment Order 2023" on May 8, 2023 to change some taxes. This bill will come into effect on June 1, 2023. The new bill stipulates that the import of used cars with HS codes 8703.10.00-8703.90.0000 will be prohibited for more than 12 years from the year of production and taxes will be adjusted. In addition, the General Customs Administration of Nigeria (NCS) increased automobile import tax from 39.45% to 39.62% in June 2023 to reduce dependence on imported automobiles and promote the development of domestic manufacturing, which increased the price of used cars by nearly 100%.

2. Tax policy

Imported used cars from Nigeria are subject to customs duties, National Automobile Commission Taxation (NAC), Value Added Tax and Import Adjustment Tax (IAT). At the end of 2021, the old version of the Economic Community of West African States Common External Tariffs will expire and will be moved to the new version (2022-2026). The Statistics Bureau of Nigeria retains the 20% used car tariff adopted by the Economic Community of West African States. In May 2023, Nigeria issued a new consumption tax revision order to adjust the import tax on used cars. The details are as follows:

(1)Tariff: 20%

(2)National Automobile Commission Taxation (NAC):15%

(3)VAT: 7.5%

(4)Import Adjustment Duty (IAT): For vehicles with engine displacements of 2-3.9L, a 2% import adjustment duty will be added. A 4% import adjustment tax will be imposed on vehicles with engine displacements of 4L and above. Vehicles below 2L, buses and electric vehicles are exempt from adjustment tax.

3. Documents required for import

● Qualification certificate of the importing enterprise (all importing enterprises must apply for import business from the Ministry of Finance and obtain a license, and must also submit tax payment certificates for the past three years)

● Inspection report

● Final invoice

● Price and Certificate of Origin (CCVO)

● Packing List

● B/L/AWB/Waybill

:: Certificate issued by the transport operator

● Insurance certificate

● Manufacturing certificate issued by the manufacturer to record specifications

● Form M application

● SONCA certification

Source: "China's Used Car Export Country Guide 2024"

This article is reproduced from the "2024 Country Guide" and is only used for information sharing. If infringement is involved, please contact and delete it. This site does not bear relevant legal responsibilities.