I’ve recently started watching documentaries, and it has had a profound impact on my writing. If you’re a writer, I highly recommend making this a regular practice. One by Augustine Chidiebere, Founder of Delvett, tells the compelling story of a billionaire who built Nigeria’s first car brand.
A line from that story kept echoing in my mind. Innocent Chukwuma, the billionaire, built an empire from a single insight: he studied the market for affordable used (tokunbo) bikes. The takeaway for me was that used goods aren’t just leftovers; they are an opportunity, turning overlooked value into a thriving business.
If you look closely, the used-goods economy isn’t some niche market. It generates substantial revenue, provides jobs for millions, and defines how people access everything from transportation and clothing to home essentials. To understand the hustle of survival and the spirit of entrepreneurship in Nigeria and many African cities, you have to start with the market for the used things people buy.
The trends we’re seeing extend far beyond Nigeria. Globally, the second-hand economy is experiencing a significant boom. In the U.S., for example, the market expanded to $43 billion in 2023, growing seven times faster than traditional retail. This global surge is driven by consistent factors, which are affordability, sustainability, and the rise of digital platforms. These factors are transforming local markets from Lagos to Los Angeles.
The Billion-Dollar Secondhand Market
In Nigeria, the term “Tokunbo” refers to imported used items, which often include cars, motorcycles, spare parts, electronics, furniture and clothing. This expansive supply chain is fed by informal markets, wholesale hubs, cross-border traders, and digital platforms, all of which work to keep prices accessible for most households.
What I’ve come to understand is that the secondhand market isn’t just a side hustle. It is a fundamental and essential part of the economy. A recent market analysis estimates the Nigerian used car market is on track to reach $1.24 billion in 2025 and is projected to grow to $1.90 billion by 2030. According to Vanguard News, the market for used cars in Nigeria has already hit 500,000 per year, far outpacing the 13,000 new cars sold in the country.
The second-hand market plays a similar structural role for clothing. Thrift clothes sustain entire value chains—from importers and wholesalers to street vendors and tailors. This is driven by growing retail demand, which analysts at Forbes Africa point to as a result of both affordability and a cultural trend of “style recycling.”
Globally, this movement is being amplified by digital platforms. Companies like ThredUp, Poshmark, and Depop are digitising the thrift store experience, making it easier than ever for people to buy and sell pre-owned goods.
What Drives the Secondhand Economy?
First, the obvious driver is Price. New vehicles and branded goods sit far beyond the means of most consumers. Second, traders and entrepreneurs find margins in logistics and refurbishment. It’s the same move Innocent Chukwuma made in his early days. Augustine shared how Chukwuma imported disassembled motorcycles to fit more into each container, then he reassembled them locally to cut costs.
Third, adaptation. A key trait of this market is its ability to adapt. Just like their global counterparts, tokunbo traders are masters of adaptation. They skillfully reroute imports or adjust their inventory models in response to border restrictions, currency volatility, and shipping delays.
And finally, digital transformation. Digital marketplaces have also changed the game. Global resale platforms are using AI to match buyers and sellers. Similarly, Nigerian traders are using online listings, WhatsApp groups, and e-commerce partnerships to build transparency and trust.
Who Builds Wealth In This Market?
Specialist importers, platform owners, and workshop operators are the key players building wealth in this market. They reinvest their earnings, hire mechanics, and create local business clusters that support thousands of jobs. These successful businesses exist across the value chain, and you’ll find them in three main forms:
- Specialist Importers and Dealers: These are entrepreneurs who moved early to systematise logistics and offered after-sales services, creating a professional experience for customers.
- Platform Owners: These are the innovators who have turned simple classified ads into comprehensive services that now include vehicle inspection, financing, and warranty options.
- Workshop Operators: These are business owners who repair, retrofit, and resell items at a large scale.
Crucially, these local business clusters create a multiplier effect. These businesses create a multiplier effect by reinvesting profits and building a robust local supply chain. This is a powerful cycle, much like what their global counterparts achieve with the help of AI, blockchain, and the circular economy.
The Risks That Matter
I’ve also come to see that this thriving market isn’t without its challenges. Policy shifts can change margins overnight, as new regulations on older, higher-pollution imports can shrink the supply of goods. Just like in global markets, quality and authenticity issues are a constant concern. Perhaps most importantly, a heavy dependence on imports can hinder local manufacturing growth, unless entrepreneurs consciously channel their profits into building domestic capacity.
Here’s My Takeaway
Whether it’s called tokunbo in Lagos or “pre-loved” in San Francisco, the secondhand economy answers a fundamental question: how do people get what they need when “new” is out of reach? Entrepreneurs who see this not as a moral debate, but as a business problem, find opportunities to scale. Ultimately, this movement is about more than just recycling; it’s about fundamentally rethinking the flow of value in a consumer-driven world.
The tokunbo markets will not disappear, and neither will the global resale boom. Both reflect the enduring realities of affordability and resource constraints. But they also present a crucial choice: to simply optimise the import-resell model, or to reinvest those profits into building the local industries that can one day compete with imports. One thing is certain: used goods aren’t the end of a product’s life. In many cases, they’re just the beginning of a bigger, more creative story.
