MARKET NEWS

Nigeria spent more than N10.8 trillion importing vehicles, transport equipment and automotive spare parts within three years, a development experts say is worsening pressure on the Naira, draining foreign exchange reserves and crippling local industrial growth.

Industry figures released by the National Automotive Design and Development Council (NADDC) showed that over N4.3 trillion was spent on passenger vehicle imports between 2023 and 2025, while transport equipment imports gulped another N6.54 trillion during the same period.

The report also revealed that automotive parts and accessories imports rose to N1.57 trillion, exposing Nigeria’s continued dependence on foreign suppliers for basic industrial inputs.

Analysts described the development as a major economic setback for a country seeking industrialisation and exchange rate stability.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the huge import bill reflected the weak state of Nigeria’s manufacturing sector and the absence of strong backward integration policies.

His words, “What we are seeing is a massive export of jobs and capital. A country of over 200 million people should not remain heavily dependent on imported vehicles and components.

The pressure this places on foreign exchange is enormous.” He warned that continued dependence on imported automobiles would sustain pressure on the Naira and worsen inflationary trends.

Former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Yusuf, however, noted that policy inconsistency remained one of the biggest obstacles discouraging large-scale investment in local automobile manufacturing.

The latest figures showed that passenger vehicle imports surged by 24.64 per cent year-on-year to N1.58 trillion, despite rising inflation and declining consumer purchasing power.

Transport equipment imports climbed by 107 per cent within two years to N6.54 trillion, underlining the country’s growing dependence on imported industrial and logistics infrastructure.

In response, the Federal Government has intensified implementation of the “Nigeria First Policy,” which compels Ministries, Departments and Agencies (MDAs) to prioritise locally assembled vehicles in public procurement.

Director-General of the NADDC, Joseph Osanipin, recently said Nigeria could no longer afford to remain an import-dependent automotive market.