The cost of vehicles in Nigeria is expected to increase as the Federal Government moves to ban the importation of foreign-used (tokunbo) vehicles beginning from the third quarter of 2026.

According to a report, the proposed ban is part of efforts to promote patronage of locally assembled vehicles, strengthen the domestic automobile industry, and improve the overall quality and safety of vehicles on Nigerian roads.

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Industry stakeholders warn that the policy could lead to a short- to medium-term rise in car prices, as tokunbo vehicles currently dominate the Nigerian auto market due to their relative affordability.

However, government officials argue that the move will encourage investment in local assembly plants, create jobs, reduce environmental risks from ageing vehicles, and align Nigeria with global best practices in automotive standards.

Further details on implementation guidelines and exemptions, if any, are expected to be announced in the coming months.