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Nigeria’s Luxury Car Market to Experience Steady Growth Despite Rising Inflation

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Maxim Makarchuk Nigeria's luxury car market

By Maxim Makarchuk

Nigeria’s luxury car market is experiencing remarkable growth despite the challenges posed by rising inflation and economic turbulence. This is unsurprising as the industry stands as a symbol of elegance, prestige, and affluence in Nigeria’s dynamic economic landscape. According to Statista, revenue in the Nigerian luxury car market is projected to reach USD 32 million by the end of 2024. The industry is expected to have an annual growth rate (CAGR 2024-2028) of 14.75%, resulting in a projected market value of USD 55 million by 2028.

This exponential industry growth is driven by a potent mix of different factors, including changing customer desires, emerging trends, infrastructure development, and a shifting preference for sustainable luxury cars.

Aspiration amidst adversity

There’s an insatiable appetite for luxury goods, especially amongst the growing Nigerian middle class, who aspire despite the difficulties and see cars as a significant luxury good. The country’s economic fluctuations are no match for the allure of luxury brands such as Mercedes-Benz, Lexus, Toyota and Land Rover, currently the leading brands with over 60% contribution to the luxury cars ads on Jiji.  Luxury goods consumers prioritise symbolic consumption to showcase their success. Thus, luxury cars have become a statement of achievement, a tangible manifestation of one’s income power, and social standing in a competitive society where appearances matter.

Balance of performance, style, and affordability

In addition to the undiminishing desire for prestige and social distinction, Nigerians also want to balance style, comfort, performance, and budget. Consumers are increasingly looking for relatively affordable cars that provide a comfortable and luxurious driving experience while delivering durability, fuel efficiency, and high performance on the road. For instance, the demand for SUVs in Nigeria is skyrocketing in recent years. This can be attributed to several factors, including customers’ desire for vehicles with more space and versatility, as well as options more suitable for the country’s challenging road conditions.

A diverse nation with varied tastes

The purchasing patterns in Nigeria have led to a rich diversity in the luxury car market, catering to a wide spectrum of demographics, tastes, lifestyles, and budgets. In response, luxury car dealers and other related businesses are continually emerging to meet the needs of their discerning clientele. Nigeria’s luxury car market is poised to continue its rising as a fast-growing, multi-diverse nation, meeting the specific expectations of its affluent customers.

Urbanisation

Infrastructure investment is also driving the growth of the luxury car market in Nigeria despite the rising inflation. Nigeria’s ambitious infrastructure projects are reshaping the automotive sector, creating an environment conducive to luxury car ownership. Improved road networks and upscale residential developments are fueling the desire for high-end automobiles. A drive through the streets of Banana Island, Lagos, the upscale neighbourhood of Maitama, Abuja, and other upscale neighbourhoods exposes one to an array of luxury cars.

The need for sustainability

The country is embracing sustainable luxury just like the rest of the world, and it’s a driving force behind customer preferences. Luxury car buyers in Nigeria are increasingly drawn to eco-friendly and fuel-efficient models that offer performance without harming the climate. For instance, Tesla’s electric vehicles and BMW’s i3 are gaining popularity in the Nigerian luxury car market due to their sustainability features. Stakeholders must therefore hasten the process of infrastructural provisions for EV charging points in the country to accommodate the growing adoption of EVs. A few charging stations exist like the NADDC stations in Lagos and Sokoto, as well as privately owned stations in-office and in-home.

Demand for luxury goods undeterred by rising inflation or other macroeconomic factors

The luxury goods companies can be considered inflation-proof as the consumer is willing to pay the premium. While this strong standing may be challenged in the future if the inflation rate continues its hike, the high-end luxury market and major luxury brands remain less affected by the rates compared to the rest of the market. Despite the economic challenges posed by inflation, the luxury car market in Nigeria stands as a beacon of resilience and aspiration. It continues to defy gravity as consumers, undeterred by economic fluctuations, prioritise status, comfort, and performance on the road. Available data shows that Nigerians’ love for luxury automobiles shows no signs of slowing down. It’s no wonder why the car upgrades business is also in its booming season – old model, upgraded body.

With platforms like Cars45, Carmart, and Jiji making access to affordable cars easier for the common man, the industry is poised to continue its upward trajectory, defying odds and charting a course of steady growth. For car dealers, investors, car loan financiers, and other automotive industry players, this is a wake-up call to double up efforts to be better prepared to meet the economic and industry shakeup expected with such rapid growth.

Maxim Makarchuk is the Chief Operating Officer for Jiji and Cars45

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Police to Resume Tinted Glass Permit Enforcement January 2

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tinted glass permit

By Aduragbemi Omiyale

The Nigeria Police Force has said it would begin the enforcement of the controversial tinted glass permit despite an ongoing case in the court.

In a statement on Monday night signed by its spokesman, Mr Benjhami Hundeyin, the police said the reason for the resumption of the enforcement was due to insecurity in the country.

The enforcement, the statement noted, will resume on Friday, January 2, 2026, and motorists who require the tinted glass permit have been encouraged to apply through the approved channels and ensure that their vehicles comply with legal procedures.

The police noted that there was not a time the court prevented it from going ahead with the implementation of the tinted glass permit, noting that this was for the “safety of all citizens.”

“It is important to clarify that at no point did the court restrain the Nigeria Police Force from enforcing the provisions of the law regarding the use of tinted glass on vehicles.

“Nonetheless, in the spirit of responsibility, transparency, and public convenience, the Force suspended enforcement to allow motorists ample opportunity to regularise their documentation and complete the registration process without pressure,” parts of the statement today stated.

“Recent trends, however, reveal a disturbing rise in criminal activities perpetrated with the aid of vehicles fitted with unauthorised tinted glass. Some individuals and organised criminal groups have exploited this gap to conceal their identities and facilitate crimes ranging from armed robbery to kidnapping and other violent crimes.

“In view of this, the Nigeria Police Force has found it both necessary and urgent to resume full enforcement as a proactive measure to safeguard our communities.

“Consequently, enforcement of tinted glass permit will resume on January 2, 2026,” it declared.

“The Inspector-General of Police (IGP) Kayode Adeolu Egbetokun, assures the public that the renewed enforcement will be carried out with utmost professionalism, respect for the rights of citizens, and in accordance with extant laws.

“He adds that the Force remains committed to promoting public safety and upholding the rule of law while working collaboratively with all stakeholders to keep Nigeria secure,” the statement added.

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Beer Sectoral Group, FRSC Promote Safer Roads With 2025 DDD Campaign

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safer roads 2025 DDD Campaign

By Aduragbemi Omiyale

The 6th edition of the annual Don’t Drink & Drive (DDD) campaign of the Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria (MAN), organised in partnership with the Federal Road Safety Corps (FRSC), has officially flagged off.

The safer roads initiative commenced in Lagos with a press interaction and stakeholder briefing attended by FRSC officials, the BSG executive team, transport unions, and media organisations.

The DDD campaign reinforces BSG’s ongoing commitment to promoting responsible drinking and safer roads across Nigeria.

Chairman of the group, Mr Carlos Coutino, stressed the industry’s unwavering commitment to road safety and responsible drinking.

“The beer industry remains steadfast in its commitment to responsible drinking advocacy. The Don’t Drink & Drive campaign has been one of the Beer Sectoral Group’s flagship corporate social responsibility programmes since inception, aimed at saving lives and fostering safer transportation habits,” Mr Coutino stated.

In his welcome address, the Corps Commander, Mr Kehinde G. Hamzat, emphasised the heightened dangers on the roads during the festive season and the need for stronger public awareness:

“The risk of road crashes increases significantly during the festive season, which is why we must intensify public sensitization efforts. Collective awareness and responsible choices are critical to saving lives on our roads,” he said.

He lauded the BSG member companies for their consistent support of the FRSC in this initiative over the years, noting that their commitment has made a real impact in reducing avoidable accidents.

“I wish to express my profound appreciation to our esteemed stakeholders, Beer Sectoral Group for partnering with the Federal Road Safety Commission in the campaign for continued corporate social responsibility efforts towards ensuring safety on our roads,” he said.

In her closing remarks, the Executive Secretary of BSG, Mrs Abiola Laseinde, thanked the FRSC and transport stakeholders for their continued collaboration, underscoring the vital role of collective action in reducing avoidable accidents caused by drunk driving.

After the event, the team proceeded to major motor parks in Lagos, Berger and Ojota — for the park rallies.

At each location, commercial drivers and road users received safety sensitization, breathalyzer demonstrations, and branded educational materials. The rally also featured direct engagements with transport unions and drivers to reinforce the message of safety and responsible alcohol consumption.

The BSG comprises notable brewers like International Breweries Plc, Nigerian Breweries Plc, and Guinness Nigeria Plc.

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Dangote Cement Empowers Drivers, Riders With Life-Saving Kits in Ogun

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Dangote Cement Life-Saving Kits

By Aduragbemi Omiyale

As part of its efforts to ensure smooth festive period, the Ibese Plant of Dangote Cement Plc in Ogun State at the weekend distributed some life-saving kits to motorcycle riders and commercial drivers in the Gateway State.

Some of the items given to the commercial drivers and riders included helmets, reflective jackets as well as safety goggles.

The company said road safety campaign, which happened at the Ilaro Motor Park, was to curb preventable crashes by promoting responsible driving and riding habits as vehicular traffic surges towards the year-end.

Facilitators demonstrated the four major blind spots—front, passenger side, driver’s side, and rear—using live motorcycles and a stationed truck. Riders were stunned to discover that even an attentive driver could not see them in these zones.

A staff of Dangote Cement Transport for Health, Safety and Environment, Ms Ebere Okonkwo, explained that the initiative aligns with Dangote Cement’s broader mission to promote safer roads and foster harmony between truck drivers and other road users.

“Safety is a shared responsibility. This programme teaches road users especially the drivers and riders how to identify blind spots and equips them with safety kits. It’s part of our continuous effort to save lives.

“Overspeeding, impatience, and miscalculations remain leading causes of preventable road accidents. We urge riders to prioritize safe riding habits and strictly obey traffic regulations, especially during these remaining days into the New Year when vehicular movement peaks,” Ms Okonkwo said.

The Head of Transport and Safety at Ibese Plant, Mr Peter Abuad, led a practical session on basic issues in Road safety demonstrated how the drivers and the Okada riders could identify and avoid truck blind spots.

He highlighted four critical danger zones—directly in front, both sides, and behind heavy vehicles—warning riders to steer clear during lane changes and turns.

“If you are in any of these blind spots, the truck driver does not know you’re there. Avoid them at all times. Dangote Cement Ibese is committed to ensuring safety and improving lives,” he stated.

The Unit Commander of the Federal Road Safety Corps (FRSC), Sulaiman Kolawole Oluwadumiye, warned that excessive speed remains a leading cause of fatal crashes.

“Speed is sweet—the engine sounds powerful, the road looks open, and you feel in control. But the same speed that feels good for one minute can destroy a family in another second.

“The road has no respect for confidence or experience. There is no medal for the fastest driver and rider, only sorrow for the careless one,” he said.

He explained that speeding reduces a rider’s ability to spot danger and brake effectively, noting that articulated trucks pose even greater risks when control is lost.

“Most crashes involving motorcycles and trucks happen because riders unknowingly enter these danger zones,” he said, recounting a recent fatal crash caused by a rider overtaking on the wrong side and disappearing into a truck’s blind spot.

One of the beneficiaries of the programme, Mr David Odumoye thanked the management of Dangote Cement for deeming it fit to come to the park to meet the drivers and riders and enlighten them on road safety issues and donating safety items to them, adding, “Nobody is an expert on the road, no matter how long you’ve been riding. This training is very important. We thank Dangote for the initiative and the protective kits.”

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