November 11, 2025
The cost of registering a new car in Nigeria has skyrocketed, from the N80,000–N105,000 range recorded in 2024, to between N115,000 and N140,000 in 2025, depending on the agent and location.
This significant increase reflects a broader trend of rising administrative and documentation expenses across the automotive sector.
Industry sources attributed the price hikes to a combination of higher production costs for licenses and number plates, new regulatory charges and widespread informal levies.
According to a senior staff member at Mutual Benefits Assurance, “Registering a new car in Nigeria costs between N115,000 and N140,000 today, and it takes between three to five working days to be ready.”
The change of ownership now costs more than a new registration, from N90,000–N115,000 in 2024 now ranges between N130,000 and N150,000.
The procedure entails series of steps, such as drafting a sale agreement between buyer and seller, obtaining a police report and court affidavit, conducting a vehicle inspection, and reissuing the proof of ownership certificate and license.
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However, registering a vehicle in Nigeria involves several mandatory certifications and fees, many of which have been reviewed upward this year.
Although Number Plate, is Officially N30,000, agents often charge up to N50,000.
Vehicle Licence: Between N5,000 and N15,000, depending on engine capacity.
Road WoLrthiness Certificate: N5,000–N10,000.
AutoVIN and VIN Check: Mandatory verification of accident history, ownership, and service records.
Third-Party Insurance: Increased from N5,000 to N15,000.
These higher costs have been attributed to inflationary pressures on documentation and insurance.
An Autos industry operator said, “The price has been increasing in the last few years. Look at the third-party insurance we used to do for N5,000—it’s now N15,000. The cost of other documents like the vehicle licence has also gone up.”
While the official rates are published by the Joint Tax Board (JTB), but the actual cost paid by car owners is often higher due to informal charges and logistical expenses.
A car dealer, said “transport fares, courier costs, and facilitation tips given to agency officials” significantly inflate the final price.
“Transport fare and other logistics costs, including little tips here and there to make the process faster, is the major reason why the official price is different from the real price,” he said.
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The rising administrative costs have made vehicle ownership increasingly out of reach for many Nigerians.
“Owning a car in Nigeria today has become expensive adventure,” said Jimoh a car owner in Ibadan. “Whether it’s a Nigerian or foreign used car, the registration fee is high. Renewing those documents annually isn’t cheap either.”
The surge in the cost of obtaining a driver’s license or number plate in Nigeria, followed the approval of a new price structure by the Joint Tax Board, JTB.
The revised fees, which took effect on Sunday, June 8, 2025, is applicable nationwillde.
A public service announcement issued by the JTB in May 2025, stated that the adjustment was prompted by the introduction of enhanced security features in the production of number plates and driver’s licenses, along with rising cost of incidental production.
