Motorcycle Imports Surge by 204% in Q1 2024
Data from the National Bureau of Statistics (NBS) reveal Nigeria recorded N117.4 billion as import cost for motorcycles in the first quarter of 2024.
The figure represents a 204% increase from the N38.6 billion recorded in the same period in 2023, reflecting the depreciation of the naira.
The data is contained in the latest foreign trade statistics report of the NBS.
Nigerians rely heavily on commercial motorcycles for intra-city transportation and commuting despite several bans across the country by state governments largely due to insecurity perpetuated through motorcycles.
According to the data, motorcycle imports ranked 10th on Nigeria’s import list down from 9th a year earlier.
This is despite attracting a higher import bill in the period under consideration.
However, this product made up 0.93% of the total import value in Q1 2024, up from 0.69% recorded in the same period of the previous year.
The impact of exchange rate depreciation on the rise in the naira’s import bill is also a crucial factor that cannot be eliminated. For example, in the first quarter of 2023, the average exchange rate from naira to dollar was N461/$1.
However, by the end of March 2024, the official exchange rate had depreciated to N1,309/$1 representing a 64% depreciation in one year.
In dollar terms, motorcycle import was $83.73 million in Q1 2023 at the exchange rate of N461/$1 while it was $89.69 million by Q1 2024 at the exchange rate of N1,309/$1.
This means that the import value this year is marginally less when compared to that of last year in dollar terms.
As the naira weakens against other currencies, the cost of imported goods, including motorcycles, rises. Importers must spend more naira to purchase the same quantity of goods priced in foreign currencies.
This leads to a higher naira value for imports even if the volume remains unchanged or less.
The data from NBS indicates that India has established itself as Nigeria’s top import trader for motorcycles in Q1 2024.
The import value from India was N73.59 billion, which was 63% of the total motorcycle imports in that period.
This figure is almost double that of China, the second-highest import partner, which recorded an import value of N40.18 billion.
When comparing this data with previous periods, the growth in imports from India becomes even more striking. In Q1 2023, Nigeria imported N24.12 billion worth of motorcycles from India, a value substantially lower than in Q1 2024, representing a 205% increase over a year.
In contrast, China’s import values, though also increasing, did not see as dramatic a rise as India’s. In Q1 2023, Nigeria imported N13.64 billion worth of motorcycles from China. By Q1 2024, this figure had risen by 195%, making China the second top import trading partner for motorcycles.
Examining the data from Q4 2023 provides additional context to the fluctuating dynamics of Nigeria’s motorcycle import market. During this period, Italy recorded the highest import value at N105.88 billion, followed by China at N93.01 billion.
India, with an import value of N51. 83 billion, was behind both Italy and China. This indicates that Q4 2023 saw a temporary peak in imports from Italy, which did not carry forward into Q1 2024.
Despite the variability in import sources and values, it is clear that India has emerged as the dominant player in Q1 2024.
The data also reveals that other countries like Indonesia and Japan play minor roles in Nigeria’s motorcycle import market, with significantly lower import values. Indonesia recorded N3.64 billion, and Japan had N22.49 million in Q1 2024.
