Industry leaders have intensified calls for a comprehensive overhaul of Nigeria’s automotive sector as the country continues to spend an estimated $4.5 billion each year on vehicle imports, a trend stakeholders describe as economically unsustainable.
The renewed push emerged during a capacity-building session organised for members of the House of Representatives Press Corps, where policymakers, regulators and private sector operators examined structural weaknesses within the nation’s automotive ecosystem and pathways to stimulate domestic production.
Participants at the forum highlighted the widening imbalance between Nigeria’s import dependence and its limited local manufacturing output.
Current industry estimates indicate that Nigeria assembles roughly 10,000 vehicles annually, a fraction of the output recorded by leading African automotive hubs. By comparison, Morocco produces approximately 700,000 units per year and generates substantial export earnings from the sector.
Experts argued that Nigeria’s heavy reliance on fully built imported vehicles continues to strain foreign exchange reserves while suppressing job creation opportunities across the automotive value chain. They maintained that strengthening local assembly plants, component manufacturing and backward integration would reduce capital flight and build industrial resilience.
Professor Oscar Odiboh, a market development specialist, stated that a significant proportion of Nigerians remain excluded from reliable vehicular mobility due to affordability constraints and structural inefficiencies within the sector.
According to him, addressing the supply gap through increased local production would help lower costs, stimulate competition and expand access.
Stakeholders stressed that effective local manufacturing extends beyond simple assembly operations. They noted that meaningful industrialisation requires deeper localisation of components, technology transfer, quality assurance enforcement and sustained policy stability.
The National Automotive Design and Development Council (NADDC) reiterated its commitment to advancing indigenous production capacity.
The agency’s leadership emphasised that Nigeria’s automotive transformation depends on legislative backing capable of guaranteeing long-term policy consistency.
Investors, they argued, require certainty regarding tariff structures, fiscal incentives and regulatory frameworks before committing substantial capital to vehicle manufacturing.
Industry operators further advocated closer collaboration between regulatory bodies responsible for standards enforcement, local content compliance and industrial monitoring. They noted that without strict quality control and enforcement mechanisms, domestic manufacturing efforts may struggle to gain consumer confidence.
