Imports, Inflation Stall Nigeria’s Auto Dreams

By FIDELUS ZWANSON

NIGERIA’S automobile industry is under pressure as rising vehicle imports and soaring inflation weaken the prospects of local manufacturing and assembly.

Despite government policies aimed at promoting domestic production, the influx of foreign-used vehicles and rising input costs have made locally assembled cars less competitive. Consumers, already squeezed by inflation, increasingly opt for cheaper imports.

Automotive expert Luqman Mamudu warned that Nigeria’s automotive programme is unlikely to survive without strict controls on used vehicle imports and affordable credit financing for buyers. He criticised tariff cuts under the 2020 Finance Act, which he said crippled assembly plants and led to job losses.

Industry stakeholders argue that Nigeria has the skills and technology to build a viable auto sector but suffers from weak policies and lack of political will. They say targeted investment, training, and partnerships with global producers are essential to revitalise the sector.

Without urgent reforms, experts caution that Nigeria risks remaining a dumping ground for second-hand cars, stalling job creation and its ambition to become a regional automotive hub.