Low hanging fruits are available for prospective Nigerian investors in the country’s and continent’s growing used-car market, as the nation’s automobile assembly plants remain stagnant. This has raised doubts on the part of automakers willingness to make further investment in the country on the back of Federal Government’s reduction of import taxes on imported vehicles.
The opportunities for investment are opened on the back of the growing huge number of African used-car market, which unfortunately Nigeria controls just a ridiculous 1 percent financial credit penetration despite the country’s massive population size.
Figures obtained from the National Bureau of Statistics (NBS) (October 2018-September 2019) indicate that Nigeria spent N1.08 trillion on importation of used vehicles, popularly called Tokunbo and motorcycles in one year.
While Nigeria accounts for only 1 percent credit penetration in Africa’s used-car market when compared with other African nations, prospective investors and car buyers will benefit more when there are opening for credit financing with convenient interest-based credit package available for both the consumer and the registered automotive dealerships.