The Nigerian Automotive Manufacturers Association (NAMA) has called on the Federal Government to introduce stronger industrial protection measures alongside the proposed 2026 Fiscal Policy Measures, warning that premature tariff liberalisation could undermine local vehicle manufacturing and discourage investment in the sector.
In a position paper jointly signed by the association’s Chairman, Mr. Bawo Omagbitse, and its Executive Director/Chief Executive Officer, Dr. Harpreet Singh, NAMA urged the government to strike a balance between trade liberalisation and policies that encourage domestic production.
The document, which was submitted to the Minister of Industry, Trade and Investment and copied to the National Automotive Design and Development Council (NADDC), was made available to journalists in Lagos on Tuesday.
According to Omagbitse, while the association supports the Federal Government’s economic reforms and efforts to align Nigeria’s trade policies with the ECOWAS Common External Tariff and the African Continental Free Trade Area (AfCFTA), adequate safeguards must be put in place to protect local vehicle assemblers.
He commended initiatives such as incentives for locally assembled vehicles, the End-of-Life Vehicle Policy and the Vehicle Conformity Assessment Programme but expressed concern that the narrowing duty gap between imported fully built vehicles and locally assembled vehicles could weaken the country’s automotive development drive.
“The current fiscal measures encourage trade liberalisation but do not provide the level of industrial protection required to sustain local vehicle assembly and component manufacturing,” he said.
Omagbitse noted that Nigeria’s automotive industry is still developing and requires policy support to attract long-term investments, create jobs and increase local production.
He stressed that making vehicles more affordable for consumers should not come at the expense of local manufacturers.
“Affordable vehicles and protection for investments that create employment should go hand in hand,” he added.
The NAMA chairman also cited data from the Nigerian Ports Authority showing that vehicle imports rose by 67 per cent, from 35,262 units in the first quarter of 2025 to 58,870 units during the corresponding period of 2026.
He said the increase, recorded even before the implementation of the latest fiscal measures, suggested that importers were already positioning themselves to benefit from anticipated lower import duties.
According to him, unrestricted imports could reduce local assembly activities, discourage fresh investments and negatively impact industries producing automotive components such as tyres, batteries, plastics and glass.
Speaking on the association’s recommendations, Singh said NAMA fully supports the government’s objectives of making vehicles more affordable, improving revenue generation and promoting regional trade.
However, he maintained that these goals should be pursued alongside incentives that strengthen local manufacturing.
He pointed to countries such as Thailand, Morocco, South Africa and China, where governments combined tariff protection with production incentives, supplier development, export promotion and infrastructure support before opening their automotive markets to greater competition.
Singh also observed that Nigeria’s Automotive Industry Development Plan (NAIDP) has struggled to achieve its objectives because it lacks legal backing.
He said investors require long-term policy certainty before committing substantial investments to the sector.
To address the challenges, NAMA proposed restoring a wider tariff differential between imported fully built vehicles and locally assembled vehicles, making consultations with the NADDC and the Ministry of Industry, Trade and Investment mandatory before introducing future automotive fiscal policies, and urgently passing the NAIDP into law.
The association also advocated production incentives, the establishment of an automotive supplier development fund, priority access to foreign exchange for manufacturers and dedicated energy and logistics support for the industry.
Singh warned that without sustained industrial support, Nigeria could remain only a large market for imported vehicles instead of becoming a competitive automotive manufacturing hub.
He reaffirmed NAMA’s commitment to supporting the Federal Government’s economic reform agenda while encouraging policies that promote sustainable industrial growth and local production.
