Nigerians imported vehicles worth $4 billion in 2012, out of which 67 per cent were fairly used, popularly called ‘tokunbo’ in local parlance.
These statistics emerged at the Equipment Leasing Association of Nigeria (ELAN) forum on “Implication of Automotive Policy on Equipment Leasing in Nigeria” held on Thursday in Lagos.
In his presentation at the occasion, Alfred Okugbeni, Managing Director/CEO, Nigeria Sinotruck Limited stated that the annual vehicular demand in Nigeria was about 500,000 per annum, adding that the country, with a growing middle class population could sustain the automotive industry.
He noted the growth in the outstanding leasing volume in Nigeria from N671 billion in 2012 to N780 billion in 2013, representing 16 per cent income as against 7.8 per cent in 2012.
Okugbeni drew attention to the fact that it was not just last year issue, adding that it has been a contenuous trend of growth.
Citing the growth figures from 2004 to 2013, he said the lease volume has continually grown over the years.
He said: “Even as huge as the figures are, there are still double digit growth in the leasing volume and this level of growth is bound to continue if certain conditions are put in place.”
On the leasing assets composition, he said plant and machinery was 16 per cent; computer and office equipment 10 per cent; aircraft and ship, 5 per cent; all other assets, 11 per cent; while cars and commercial vehicles in 2013 constituted 58 per cent of the total value of assets, not just in volume but in value.
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