Selling used and reconditioned cars in Nigeria
What the FCCPC says a Nigerian dealer must tell buyers about used or reconditioned vehicles, and what the sale invoice and records should show.
By Achekam · · 5 min read · For Automotive businesses in Nigeria
Most cars sold on Nigerian lots have had a life before they arrived. Some are foreign-used imports, the familiar tokunbo; some are Nigerian-used trade-ins; some have had an engine or gearbox reconditioned before sale. Buyers know this in general. What causes disputes is the particular car: the buyer who thought the vehicle was foreign-used and later finds it was locally used for years, or who learns after purchase that the engine was rebuilt.
The Federal Competition and Consumer Protection Act puts the duty to be clear on the seller. This article explains what the FCCPC says the Act requires when a dealer sells used, second-hand or reconditioned vehicles, why "sold as is" does not settle the matter, and what the sale invoice and the deal file should record.
Section 117: say it clearly
The FCCPC states that section 117 of the FCCPA obliges businesses to inform consumers conspicuously and adequately when products are used, second-hand or reconditioned. The FCCPC's summary of consumer rights and responsibilities lists this duty with the other rights the Act gives consumers.
Two words carry the weight. Conspicuously means the buyer should not have to hunt for it: not a line buried in the terms on the back of the offer form, but a statement the buyer sees before agreeing. Adequately means saying enough for the buyer to understand what they are buying. "Used vehicle" says less than "foreign-used, imported this year, engine reconditioned by the dealership before sale".
A practical standard for every vehicle on the lot:
- Whether it is new, foreign-used, Nigerian-used or reconditioned.
- What reconditioning or major repair was done, and by whom.
- The mileage as shown, and whether the dealer has reason to doubt it.
- Known defects the dealer has not repaired.
Put this on the vehicle's display card, on the offer to purchase and on the invoice, so it is consistent wherever the buyer looks.
Plain language, and the price on display is the price
The FCCPC also describes section 114, which calls for information about goods and services to be given in plain language a consumer can readily follow. Trade jargon on the windscreen card, or abbreviations on the offer form, defeat the purpose of disclosure.
Under section 115, as the FCCPC summarises it, material facts such as the price must be fully disclosed, and the price displayed must match the price charged at the point of payment. If the windscreen shows one naira figure, the buyer should not meet a higher one at the cashier because of fees nobody mentioned. If documentation, registration or delivery charges apply, show them up front.
Written records on request
Section 118, in the FCCPC's summary, entitles a consumer who asks to a written record of the transaction, unless that is impracticable, itemising what was sold and any taxes that apply. For a vehicle sale, the invoice is the natural written record. It should describe the vehicle fully and itemise anything sold with it, such as accessories or a service, rather than lumping everything into one figure.
Why "sold as is" cannot waive everything
Many lots still use "sold as is, no returns" on their paperwork. According to the FCCPC, section 129 of the FCCPA renders void any notice or agreement that tries to limit, exclude or waive a seller's liability for fraud, misrepresentation, negligence or defective performance, or to waive the obligations the law implies.
That does not stop a dealer telling a buyer the truth about a car's condition. Disclosing a known defect is exactly what section 117 asks for. What a dealer cannot do, on the FCCPC's account of section 129, is rely on blanket wording to escape liability for misrepresentation, such as describing a locally used car as foreign-used, or for fraud. Honest, specific disclosure protects the dealer far better than a blanket disclaimer.
Returns in good condition within a reasonable time
The FCCPC explains that section 122 lets consumers return goods, apart from in limited circumstances, provided the goods are still in good condition and come back within a reasonable time. For a dealer, that is a reason to record the vehicle's condition at handover, with the buyer's acknowledgement, so that any later question about whether a returned car is in good condition can be answered from evidence rather than memory. Take legal advice on how the limited circumstances apply to your sales.
The sale invoice in Achekam
A dealer creates customer invoices in Achekam as drafts it can change or delete. Issuing one takes the next number in its sequence and posts it to the ledger as debtors, sales and output VAT. The issued invoice can be downloaded as a PDF on the dealer's letterhead and e-mailed from the invoice, with or without a pay link, and a failed send is reported as not sent.
Use the invoice to carry the disclosure:
| Invoice field | What to put there |
|---|---|
| Line description | Make, model, year, VIN and engine number |
| Line description, continued | "Foreign-used", "Nigerian-used" or "Reconditioned", and what was reconditioned |
| Separate lines | Accessories, documentation or other items sold with the vehicle |
| Tax code on each line | The code that applies to that line |
For a Nigerian business, Achekam lets you pick a tax code on each invoice line: standard, zero-rated, exempt, out of scope or reverse charge. Only standard lines carry VAT, at the approved rate for the country. This applies once the Nigerian country pack is activated in Settings. Which code applies to a vehicle or an accessory is a tax question for your adviser; the system applies the code you choose.
The deal file
Keep, for each vehicle sold: the purchase or import documents, any reconditioning invoices, the display card, the signed offer to purchase, the condition report at handover, and the issued invoice. If a buyer later says they were not told, that file is the dealer's answer.
For keeping each vehicle visible while it is on the lot, see used vehicles in stock; for taking payment, read collecting naira payments; and for the tax details on the invoice itself, see your tax ID on invoices.
The dealers who have the fewest disputes are rarely the ones with the cleanest cars. They are the ones whose buyers knew exactly what they were getting.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
