The cost of registering a new car in Nigeria has surged sharply in 2025, with fees now ranging between ₦115,000 and ₦140,000, depending on the agent and location.
This marks a steep rise from the ₦80,000–₦105,000 range recorded in 2024, reflecting escalating administrative and documentation expenses across the automotive sector.
Multiple industry sources confirmed that the sharp increases stem from a mix of new regulatory charges, higher production costs for number plates and licences, and informal levies imposed by intermediaries.
READ ALSO: 5.38 Million Electricity Customers Remain Unmetered – NERC
“Registering a new car in Nigeria costs between ₦115,000 and ₦140,000 today, and it takes between three and five working days to be ready,” a senior staff member at Mutual Benefits Assurance disclosed.
Change of Ownership Now More Expensive Than New Registration
In a surprising twist, processing a change of vehicle ownership has become even more expensive than registering a new car. Costs now range between ₦130,000 and ₦150,000, up from ₦90,000–₦115,000 in 2024.
The process involves several layers—from drafting a sale agreement and obtaining police and court documents to conducting inspections and reissuing certificates of ownership and licences.
“Change of ownership today now costs ₦130,000. This is something I used to do for ₦90,000 last year. Some others charge up to ₦150,000,” the insurance official added.
Breakdown of 2025 Vehicle Registration Costs
Below is the updated cost structure for key components of vehicle registration in Nigeria:
| Component | Official Fee (₦) | Typical Market Price (₦) |
|---|---|---|
| Number Plate | 30,000 | Up to 50,000 |
| Vehicle Licence | 5,000–15,000 | Varies by engine size |
| Roadworthiness Certificate | 5,000–10,000 | — |
| AutoVIN & VIN Check | Mandatory | — |
| Third-Party Insurance | 15,000 | Up from 5,000 in 2024 |
Mr Kunle Durojaiye, CEO of Durjokorey Autos, attributed the rising costs to inflationary pressures and increased documentation expenses.
“The price has been increasing for years. Look at the third-party insurance we used to do for ₦5,000—it’s now ₦15,000. The cost of other documents like the vehicle licence has also gone up,” he explained.
Hidden Charges Inflate Real Costs
Although official rates are published by the Joint Tax Board (JTB), vehicle owners say informal fees and logistical costs push the real price far higher.
A Lagos-based car dealer, speaking anonymously, disclosed that “transport fares, courier fees, and facilitation tips” often add tens of thousands of naira to the total cost.
READ ALSO: NAFDAC Sets December 2025 Deadline for Total Ban on Sachet Alcohol, Mini Bottles
“Transport fare and little tips here and there to make the process faster are the main reasons why the official price differs from the real price,” he said.
Public Reaction: ‘Owning a Car Is Now a Luxury’
For many Nigerians, the surging administrative costs are pushing car ownership further out of reach.
“Owning a car in Nigeria today is an expensive adventure,” said Olapoju, a car owner in Lagos. “Whether it’s a Nigerian-used or Tokunbo car, the registration fee is high. Renewing documents annually isn’t for the faint-hearted.”
Another car owner, Jude, voiced his frustration: “My dad registered a car three months ago, and when I heard what it cost, I was furious. Unfortunately, in Nigeria, when a price goes up, it never comes down.”
Why the Fees Increased
The JTB confirmed that the new nationwide price structure took effect on June 8, 2025, following a public notice issued in May. The board said the revised rates reflect enhanced security features in the production of number plates and driver’s licences, alongside rising operational and production costs.
As the policy bites, both car owners and dealers warn that Nigeria’s vehicle ownership ecosystem may soon become the preserve of the wealthy — unless government agencies intervene to address hidden levies and streamline documentation.
