The depreciation in the Nigerian currency, the naira, compared to U.S. dollar has put upward pressure on automobile prices, in some cases, resulting in 55% price increases.
This has pushed the prices of vehicles and spare parts to a record high, which has caused a steep decline in automotive sales.
In addition to the exchange rate decline, the ongoing softness in oil price drop has created revenue shortfall in the economy, according to the Guardian newspaper. Nigeria is a major oil exporter.
The sale of vehicles in Nigeria declined from 600,000 in 2015 to 350,000 in 2016, according to the Nigerian Automotive Manufacturers Association.