Five(5) factors causing high price of Powerbikes in Nigeria

Ever wondered why the price of Powerbikes kept rising in the last five(5) years in Nigeria? In early 2012, I remember owning my first bike for N180,000 - a foreign used Suzuki GS500cc (slingshot). This came as a result of Lagos state ban on commercial motorcycles on Lagos highways, it was not up to 2 weeks that I raise funds to get a bike with more power and with government backing and I was so excited getting back on Lagos road. 

It’s a surprise that the same bike that I got for N180,000 in 2012 is tagged at N800,000 as at today 5th February 2024. Affordability has reduced as the taste for superbike also increased every day because of its high speed and finesse. 

In this article, I would like to explain some of the reasons why the price of Powerbikes has kept on increasing in Nigeria.

1. High cost of clearing 

All bikes that come into the port of Nigeria must go through customs clearing. The price has skyrocketed in the last 3 years, customs officials now place a high beam on motorbikes sighted inside a shipping containers believing that it’s mainly owned by affluent individuals who have idle funds in their bank accounts. 

In the past, you can declare a motorbike as one of household effects but since the change of duty to e-valuation, duties on bikes are separately calculated, and this has jerk up the price of this fun toy.

2. Increase in price of petrol 

The recent removal of fuel subsidy has led to a lot of distortions and low purchasing power of Nigerians. No doubt, motorbikes are more fuel efficient than a 4-wheel vehicle. This has led a lot of people to consider using a motorcycle for their daily commute so as to cut down petrol expenses. There was a time that motorcycles are only ridden on weekends for leisure ride while cars are taken to work during week days. The reverse is the case now as our roads are filled with super bikes so as to spend less on fuel and consequently increased the demand for motorbikes. Supply was limited and demand went up sporadically, price also increased along with high demand.

3. COViD 19

The whole world is yet to recover from the negative impacts of COViD19. People lost their jobs in western world, everyone is trying to catch up with living expenses. The demand for cheaper means of transportation such as a motorbike also went up In countries like America and Europe where those Powerbikes are being shipped. People couldn’t afford new cars and they resorted to used vehicles as means of transportation, this consehas had a serious ripple effect on the end users in Nigeria. 

4. Government Policy 

Some state governments in Nigeria has been banning commercial motorcycles on highways, this has forced a lot of people to switch into motorbikes as their means of daily commute. The effect of this is increase in price 

5. Forex 

The value of Nigeria kept falling against the US dollar that we use to buy Powerbikes. The current exchange rate of Naira to dollar is N1,500/$. This is a serious impact that is causing prices of motorbikes to keep riding in Nigeria. 

I hope this write up has helped cleared the air on why you’ve been experiencing surge in the price of motorbikes recently.  

Gbolahan Olayiwola 

www.justbikes.ng