- Nigerians Imported Used Cars Worth N1.08trn
A recent data from the National Bureau of Statistics (NBS) revealed that Nigerians spent N1.08 trillion on used cars, popularly known as Tokunbo, and motorcycles (Okada) between October 2018 and September 2019.
According to the bureau, the country spent N676.3 billion on used cars during the period under review, while motorbike gulped N411.3 billion.
A further breakdown shows the total value of imported used cars and motorcycle rose from N252.3 billion recorded in the fourth quarter of 2018 to N301.8 billion in the third quarter of 2019.
Nigeria, an import-dependent economy, spent a total sum of N15.19 trillion on imports during the same period while the export bill rose to N18.87 trillion. Indicating that the country recorded N3.68 trillion trade surplus, however, crude oil accounted for 70 percent of the country’s exports and signals Africa’s largest economy is still struggling with diversification.
The country’s foreign reserves declined from $45 billion filed in June 2019 to $39 billion in December 2019 amid a persistent increase in import bill and capital flight due to rising economic uncertainty.
While President Buhari led administration continues to push for local consumption, lack of quality local products remained a challenge.