Connect with us


Nigeria New Car Imports Drop by 67%



car imports

Nigeria has recorded a drop of 67 per cent in its new car importation this year, compared to the 2014 figure.

Toyota Nigeria Limited, which stated this in Lagos, said 15,031 new vehicles were imported into the country by various dealers in 2015 as against 45,618 last year.

The TNL, which is the leading automobile company in the country, spoke through its Head of Marketing, Mr. Andrew Ajuyah.

He attributed the drastic drop in the number of imports to the impact of the full implementation of the automotive policy and the free fall in the value of the naira against international currencies, especially the United States dollar.

The Federal Government had in the last quarter of 2013 introduced the Nigerian Automotive Industry Development Plan (auto policy), which raised the import tariff on cars to 70 per cent from 22 per cent; and on buses and other commercial vehicles to 35 per cent.

The policy, which is meant to discourage the importation of new and used automobiles, and encourage local production/assembly of vehicles, could not be fully implemented immediately owing to pressure from stakeholders.

“This year marks the full implementation of the auto policy and that accounts for the drop in car imports in 2015,” Ajuyah said.

Although local vehicle assemblers are granted zero per cent tariff on Completely Knocked Down vehicle parts and allowed to import twice the number of vehicles locally produced at 35 per cent or 20 per cent as a way of bringing down prices of vehicle, the cost of automobiles have remained high. New vehicle dealers are complaining of poor sales.

Ajuyah said the continued fall in the value of the naira against the dollar had forced auto dealers to reduce the number of vehicles they imported this year.

The naira, which was about N210 to one dollar about six months ago, went up to 280 in the first week of December and marginally dropped thereafter. By Wednesday, it exchanged for 260 against the dollar.

The National Automotive Design and Development Council, which gave Nigeria’s potential annual new car market as one million units, put the current figure at 56,000 units in a used-vehicle dominated market.

The Director-General, NADDC, Aminu Jalal, also estimated the used vehicle imports at 300,000 units annually.

Experts say Nigeria’s local production capacity of vehicles is about 100,000 units, but the capacity utilisation has over the years dropped to less than 15 per cent. Nigeria New Car Imports Drop by 67%


Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading

Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns



Crude oil

Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

Continue Reading

Crude Oil

Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm



Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

Continue Reading


NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade



Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

Continue Reading