By ebosele@hotmail.com
The Nigerian Automotive Manufacturers Association (NAMA) has called on the Federal Government to complement its 2026 Fiscal Policy Measures with a comprehensive industrial support framework, warning that rapid tariff liberalisation without adequate safeguards could undermine Nigeria’s automotive manufacturing sector.
In a position paper submitted to the Minister of Industry, Trade and Investment and copied to the National Automotive Design and Development Council (NADDC), the association said the current fiscal measures promote trade liberalisation but lack the industrial protections needed to sustain local vehicle assembly and component manufacturing.
The paper, signed by NAMA Chairman, Mr. Bawo Omagbitse, and the association’s Executive Director and Chief Executive Officer, Dr. Harpreet Singh, acknowledged the Federal Government’s efforts to stimulate economic growth and align Nigeria’s trade policy with the ECOWAS Common External Tariff and the African Continental Free Trade Area (AfCFTA).
NAMA also welcomed policy initiatives that support locally manufactured vehicles, including the End-of-Life Vehicle Policy and the Vehicle Conformity Assessment Programme.
However, the association expressed concern that the reduced duty gap between imported fully built vehicles and locally assembled units could weaken the competitiveness of domestic manufacturers and erode years of investment aimed at building a sustainable automotive industry.
“Nigeria’s automotive industry is still at an infant to intermediate stage. Affordability for buyers and protection for the investment that creates jobs are not in conflict, and our appeal is that the two move together,” Omagbitse said.
The association cited Nigerian Ports Authority data showing that vehicle imports increased by 67 per cent year-on-year, rising from 35,262 units in the first quarter of 2025 to 58,870 units during the same period in 2026.
According to NAMA, the surge reflected importers’ anticipation of lower import duties on fully built vehicles and underscored the need for stronger support for local assembly operations.
It warned that premature market liberalisation could lead to higher vehicle imports, reduced local assembly volumes, lower factory capacity utilisation and discourage further investment in assembly plants, welding and painting facilities, as well as the production of automotive components such as tyres, batteries, plastics and glass.
“We fully support the government’s goals on affordability, revenue efficiency and regional integration,” said Dr. Harpreet Singh. “Our request is simply that these gains be sequenced with the industrial incentives that every successful automotive economy put in place before opening its market.”
The association pointed to countries such as Thailand, Morocco, South Africa and China, noting that they successfully developed their automotive industries by combining tariff protection with production incentives, supplier development programmes, export promotion and infrastructure support before liberalising their markets.
Reviewing Nigeria’s automotive policy between 2014 and 2020, NAMA observed that localisation and capacity utilisation had remained below expectations, attributing this largely to the absence of legislation backing the Nigeria Automotive Industry Development Plan (NAIDP) and the lack of long-term policy certainty needed to attract sustained investment.
To strengthen the sector, the association proposed restoring a wider duty differential between imported vehicles and locally assembled models, making consultation with NADDC and the Ministry of Industry, Trade and Investment mandatory before introducing future automotive fiscal policies, and urgently passing the NAIDP into law.
NAMA also recommended production-linked incentives, the establishment of an automotive supplier development fund, priority access to foreign exchange for industrial inputs, and dedicated energy and logistics support for manufacturers.
“Nigeria risks becoming a large vehicle consumption market without becoming a meaningful automotive manufacturing economy,” the association stated, stressing that achieving a globally competitive industry would require balancing market liberalisation with sustained industrial development.
The association reaffirmed its commitment to supporting the Federal Government’s economic reform agenda and expressed its readiness to continue engaging with the Minister of Industry, Trade and Investment and the Director-General of NADDC to advance policies that strengthen local automotive manufacturing.
