Tokumbo against new vehicles

Nigeria recorded a total sum of N1.28 trillion as of the value of ‘used vehicles,’ popularly known as Tokunbo, and motorcycles imported in one year (Q3 2019 – Q2 2020), showing an increase of 42 per cent, compared to N899 billion recorded in the corresponding period (Q3 2018 – Q2 2019).

Despite the revised import duty tariff for transport vehicles, which was announced by the government in January, car dealers are still faced with dismal patronage because of the poor economic situation of the country.

The truck is one of tens of thousands of second-hand vehicles imported each year into Africa from Europe or USA.

Million used vehicles are imported into Africa; most are destined for Nigeria and Kenya, two of Africa’s largest economies. Both countries also have car-assembling plants.

To date, local truck assemblers specializing in Chinese vehicles cannot compete in quality and price with imported used vehicles.
Local assembly is practically supported by companies such as DANGOTE who are directly involved in both transportation and assembly. In Nigeria, the taxation of new imported trucks is increasing the technological gap with European countries in logistics, while local assembly does not develop jobs as dreamed of.

 

Tokumbo, Nigerian dialect name for used vehicles

 

Romano Pisciotti

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