Several factors including harsh economic conditions, low consumer preference of Made-In-Nigeria cars and high production costs have continued to stifle domestic production of vehicles. Imports therefore dominate supply in the Nigerian car market. Most Nigerians are unable to afford new cars and therefore resort to used cars instead, especially, Japanese brands. In the past 10 years, used car imports have maintained upward trends and account for about 80% of all new and pre-owned car imports. The United States currently accounts for more than 70% of all categories of automobiles supplied to Nigeria most of which are used cars and trucks. Imports from the United States will record even greater improvements in 2010 because of the growing popularity of U.S.- assembled vehicles (usually referred to as “American Specs” in local parlance) amongst many Nigerians.
These vehicles are generally perceived to be of high quality, come in varying models with exceptional features and well maintained. The low exchange rate of the U.S. dollar also makes cars imported from the United States reasonably priced compared to European vehicles. Therefore, as long as the dollar continues to exchange for less, that will significantly favor U.S. imports in 2010.
• Used vehicles (cars and trucks) and spare parts.
• Car care products, such as car wax, carburetor/injector cleaners, fuel/oil treatments, polishes, body fillers, paints, grease removers, masking tape, transmission oils and radiator coolants.
• Modern vehicle service/repair shops.