No More ‘Tokunbo’ Cars in Nigeria by 2034 – PwC

A new report by PricewaterhouseCoopers has indicated that imported used cars, otherwise known as Tokunbo, would be phased out from the Nigerian market in the next 19 years.

According to the report, a proper implementation of the Federal Government’s auto policy, coupled with an increase in purchasing power and financing options, will encourage local production and purchase of new vehicles.

Partner at PwC, Dr. Andrew Nevin, said the projection would only be possible if the government implemented the import tariff rates in the automotive policy, which is 70% on both fully built cars and used vehicles a zero% on completely knocked down parts (components) for locally assembled vehicles.

He said PwC was optimistic that the purchasing power of Nigerians would have risen due to the expected growth in the real GDP of the country which would be the 16th largest by 2020 and the 9th largest economy in the world by 2050.

He, however, said the demand for used vehicles, which would not abate, would be generated internally rather than foreign imports as from 2044 when the Tokunbo cars would have become non-existent.

The group put the used cars for imported in 2015 at 335,000, which is 268.78 per cent higher than 90,840 new vehicles so far imported into the country this year.