The Nigerian Automotive Manufacturers Association (NAMA) has called on the Federal Government to strengthen industrial protection measures alongside its planned 2026 fiscal policy reforms, warning that excessive tariff liberalisation could weaken local vehicle assembly and component manufacturing.
In a position paper submitted to the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, and copied to the National Automotive Design and Development Council (NADDC), the association said the government’s trade reforms were commendable but required additional safeguards to protect investments in Nigeria’s automotive sector.
The document, signed by NAMA Chairman, Bawo Omagbitse, and Executive Director, Dr Harpreet Singh, acknowledged the Federal Government’s efforts to align Nigeria’s trade framework with regional and continental agreements, including the ECOWAS Common External Tariff and the African Continental Free Trade Area (AfCFTA).
NAMA also welcomed recent policy measures designed to support the sector, including incentives for locally manufactured vehicles, the End-of-Life Vehicle Policy and the Vehicle Conformity Assessment Programme.
However, the association expressed concern that reducing the tariff difference between imported fully built vehicles and locally assembled vehicles could place domestic manufacturers at a disadvantage and reverse progress made in developing Nigeria’s automotive industry.
According to Omagbitse, ensuring affordable vehicles for Nigerians should not come at the expense of protecting investments that generate employment and build industrial capacity.
“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,” he said.
NAMA argued that the automotive sector requires a carefully structured transition period before full exposure to international competition, noting that successful vehicle-producing countries typically supported domestic manufacturers before opening their markets.
The association cited official data from the Nigerian Ports Authority (NPA), which showed that vehicle imports rose significantly within one year. According to the figures referenced by NAMA, imported vehicles increased by 67 per cent, from 35,262 units in the first quarter of 2025 to 58,870 units in the corresponding period of 2026.
The group attributed the increase partly to importers positioning themselves ahead of expected reductions in duties on fully built vehicles.
NAMA warned that continued tariff reductions without corresponding industrial support policies could deepen Nigeria’s dependence on imported vehicles, reduce production levels at local assembly plants and discourage future investment in manufacturing facilities.
The association added that the impact could extend beyond vehicle assembly, affecting local suppliers involved in producing automotive components such as tyres, batteries, plastics, glass and other critical materials.
Dr Harpreet Singh said NAMA supported government efforts to improve vehicle affordability, increase revenue and promote regional economic integration but stressed that these objectives must be balanced with policies that encourage domestic production.
“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,” Singh said.
The association pointed to countries such as Thailand, Morocco, South Africa and China as examples of economies that built strong automotive industries through targeted production incentives, supplier development programmes and infrastructure investment before embracing wider market competition.
NAMA noted that Nigeria’s automotive policy journey between 2014 and 2020 recorded limited progress in localisation and manufacturing capacity. The association blamed the shortfall largely on the absence of legislation backing the Nigeria Automotive Industry Development Plan (NAIDP) and inconsistent policy direction, which it said affected investor confidence.
To address the challenges facing the sector, NAMA proposed several measures, including restoring a wider tariff gap between imported fully built vehicles and locally assembled vehicles.
The association also recommended mandatory consultations with the NADDC and the Ministry of Industry before future changes to automotive fiscal policies, as well as the speedy passage of the NAIDP into law.
Other proposals include introducing production-linked incentives, creating an automotive supplier development fund, granting priority foreign exchange access for industrial inputs, and providing dedicated energy and logistics support for vehicle manufacturers.
NAMA maintained that Nigeria’s automotive industry could become a major contributor to economic growth, job creation and industrial development if trade reforms were implemented alongside policies that strengthen local production capacity.