Nigeria’s automotive landscape is a vibrant and dynamic ecosystem, characterized by a unique preference that sets it apart from many other nations. While brand-new vehicles gleam in showrooms, a significant portion of the Nigerian populace gravitates towards a different segment of the market: used cars, affectionately known as “Tokunbo vehicles.” This term, derived from the Yoruba word meaning “from across the seas,” aptly describes vehicles imported from countries in Europe and North America, primarily the United States and Canada [1, 2]. The prevalence of Tokunbo vehicles is not merely a trend but a deeply ingrained aspect of the Nigerian economy and consumer behavior. This blog post will delve into the multifaceted reasons behind the dominance of Tokunbo vehicles in Nigeria, exploring the economic realities, perceived quality, and practical considerations that drive this enduring preference.
Understanding the Tokunbo Phenomenon
What are Tokunbo vehicles?
As mentioned, “Tokunbo” is the colloquial term used in Nigeria to refer to foreign-used vehicles. These are cars that have had previous owners in their countries of origin before being imported into Nigeria. Unlike locally used cars, which have been driven within Nigeria, Tokunbo vehicles are often perceived to be in better condition due to the maintenance culture and road quality in their original countries [3].
Historical context: How did they become so prevalent?
The roots of Nigeria’s preference for Tokunbo vehicles can be traced back to the economic downturns experienced in the country, particularly from the early 1990s [4]. As the national economy faced challenges, the affordability of brand-new cars became increasingly out of reach for the average Nigerian. This economic reality forced a shift in consumer behavior, leading to a greater reliance on more accessible and budget-friendly transportation options. The influx of relatively cheaper, yet still reliable, foreign-used vehicles provided a viable solution to the growing need for personal mobility. This historical context laid the groundwork for the robust Tokunbo market that thrives in Nigeria today.
Key Drivers of Preference
Affordability and Economic Realities
The most significant factor driving the preference for Tokunbo vehicles in Nigeria is their affordability compared to brand-new cars. Several economic realities contribute to the exorbitant cost of new vehicles in the country:
1.High Import Duties: The Nigerian government imposes substantial import duties on vehicles, which significantly inflates the final price of both new and used cars. While these duties affect all imported vehicles, the lower base price of Tokunbo cars means that even with duties, they remain considerably more affordable than their brand-new counterparts [5].
2.Inflation and Naira Depreciation: Nigeria has consistently battled high inflation rates and a depreciating currency. For instance, inflation hit 34.8% at the end of 2024, and the Naira depreciated by 42.1% [6]. These economic pressures drastically increase the cost of imported goods, including new cars, making them prohibitively expensive for the majority of the population. Tokunbo vehicles offer a more stable and accessible entry point into car ownership amidst these volatile economic conditions.
3.Accessibility for the Middle Class: The rising cost of living and stagnant wages mean that for many in the burgeoning middle class, a new car is simply an unattainable luxury. Tokunbo vehicles, with their lower purchase price, provide a practical pathway to car ownership, fulfilling the essential need for personal transportation and enhancing social mobility. This accessibility is crucial in a country where public transportation infrastructure can be inadequate.
Perceived Quality and Durability
Beyond affordability, the perceived quality and durability of Tokunbo vehicles play a crucial role in their popularity. Many Nigerians hold the belief that foreign-used cars are often in better condition than their Nigerian-used counterparts, even after accounting for their age and mileage. This perception is rooted in several factors:
1.Better Maintenance Culture in Source Countries: Countries like the United States, Canada, and those in Europe generally have more stringent vehicle inspection regulations and a culture of regular and thorough car maintenance. This means that vehicles imported from these regions are often well-maintained before they even arrive in Nigeria [3].
2.Longevity of Popular Brands: Certain car brands, particularly Japanese manufacturers like Toyota, Honda, and Nissan, have earned a reputation for exceptional durability and reliability. These brands are highly sought after in the Tokunbo market because they are known to withstand the rigors of Nigerian roads and continue to perform well for many years, even after significant prior use [7]. The availability of spare parts for these popular models further enhances their appeal.
Wide Availability and Variety
The Tokunbo market in Nigeria boasts an impressive array of vehicles, offering consumers a vast selection that caters to diverse tastes and budgets. This wide availability and variety are significant drawcards:
1.Diverse Range of Models and Brands: From compact sedans to robust SUVs and luxury vehicles, the Tokunbo market offers almost every car model imaginable. This extensive choice allows buyers to find a vehicle that perfectly matches their specific needs, preferences, and financial capacity.
2.Meeting Diverse Consumer Needs: Whether a buyer is looking for a fuel-efficient car for daily commutes, a spacious family vehicle, or a rugged SUV for challenging terrains, the Tokunbo market provides options. This diversity ensures that a broad spectrum of consumer needs can be met, unlike the limited options often available in the new car market.
Ease of Maintenance and Spare Parts Availability
A practical consideration that significantly contributes to the preference for Tokunbo vehicles is the relative ease of maintenance and the widespread availability of spare parts for popular models. This is a critical factor in a country where access to specialized car services and genuine parts can sometimes be a challenge for less common or newer car models:
1.Readily Available Parts for Popular Models: Due to the sheer volume of certain Tokunbo models on Nigerian roads, a robust aftermarket for spare parts has developed. This means that finding replacement parts for popular brands like Toyota and Honda is generally straightforward and often more affordable than for newer or less common vehicles [8].
2.Lower Maintenance Costs: The accessibility and affordability of spare parts directly translate to lower maintenance costs for Tokunbo vehicle owners. This is a significant advantage, especially for budget-conscious consumers who need to keep their transportation costs in check.
The Nigerian Used Car Market: Trends and Statistics
The statistics underscore the undeniable dominance of the used car market in Nigeria:
•Market Size and Growth: The Nigerian used car market is a substantial economic force. It was estimated at USD 1.24 billion in 2025 and is projected to grow to USD 1.90 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 8.9% [9, 10]. This robust growth highlights the increasing reliance on and investment in the used car sector.
•Dominance of Used Car Transactions: Nigeria holds the distinction of being Africa’s largest second-hand car market. Used car transactions account for an overwhelming majority—over 95%—of the entire automobile market in the country [11]. This figure starkly illustrates the preference for pre-owned vehicles over brand-new ones.
•Decline in New Car Sales: The preference for Tokunbo vehicles has a direct impact on the new car market. In the first quarter of 2025 alone, new car sales in Nigeria experienced a significant drop of 22.3% [6, 12]. This decline is a clear indicator of the economic pressures and consumer choices that favor the more affordable used car options.
•Consumer Preferences: Beyond the general trend towards used cars, specific consumer preferences within the Tokunbo market are also evident. Buyers often prioritize fuel efficiency, the popularity of certain models, and overall reliability when making their purchasing decisions [13]. These preferences are shaped by the practicalities of daily life in Nigeria, including fuel costs and road conditions.
Challenges and Considerations
While the Tokunbo market offers numerous advantages, it is not without its challenges and considerations for buyers:
1.Potential Risks of Buying Tokunbo: Buyers must exercise caution when purchasing Tokunbo vehicles. Issues such as undisclosed accident history, tampered odometers, or hidden mechanical faults can pose significant risks. Thorough inspection by a trusted mechanic and verification of vehicle history are crucial steps to mitigate these risks [14].
2.Government Policies and Their Impact: Government policies, particularly those related to import duties and vehicle age restrictions, can significantly impact the Tokunbo market. Changes in these policies can lead to fluctuations in prices and availability, affecting both dealers and consumers. For example, the increase in import duties announced in June 2023 has influenced consumer preferences [5].
Conclusion
The rise of used cars, particularly Tokunbo vehicles, in Nigeria is a compelling narrative shaped by economic realities, consumer pragmatism, and the enduring appeal of quality and affordability. The high cost of new vehicles, driven by import duties, inflation, and currency depreciation, has made Tokunbo cars an indispensable option for many Nigerians seeking personal mobility. The perceived durability, wide variety, and ease of maintenance associated with these foreign-used vehicles further solidify their position in the market.
As Nigeria’s largest second-hand car market continues its robust growth, the preference for Tokunbo vehicles is likely to persist. This trend reflects not just an economic necessity but also the resilience and adaptability of Nigerian consumers in navigating their transportation needs within prevailing economic conditions. The Tokunbo phenomenon is a testament to the ingenuity of a market that effectively meets demand by leveraging global supply chains to provide accessible and reliable transportation solutions.
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