NAMA Seeks Industrial Safeguards as Nigeria’s Auto Tariff Reforms Test Local Manufacturing Ambitions
By Daphne Uduneje
Nigeria’s ambitious fiscal reforms aimed at lowering vehicle costs and deepening regional trade integration may inadvertently undermine years of investment in local automobile manufacturing unless accompanied by robust industrial protection measures, the Nigerian Automotive Manufacturers Association (NAMA) has warned.
The industry’s umbrella body is urging the Federal Government to strike a more deliberate balance between trade liberalisation and industrial development, arguing that tariff reforms scheduled under the 2026 Fiscal Policy Measures could weaken domestic vehicle assembly at a time when the country is still struggling to establish a competitive automotive manufacturing base.
In a policy memorandum submitted to the Minister of Industry, Trade and Investment and copied to the National Automotive Design and Development Council (NADDC), NAMA acknowledged the government’s broader economic reform agenda but cautioned that opening the market faster than local manufacturers can compete risks turning Nigeria into a vehicle-importing nation rather than an automotive production hub.
The intervention comes as policymakers pursue reforms designed to align Nigeria’s trade regime with the ECOWAS Common External Tariff (CET) and the African Continental Free Trade Area (AfCFTA), while simultaneously seeking to improve vehicle affordability for consumers and enhance customs revenue efficiency.
Industry observers note that while lower import duties may reduce the cost of vehicles in the short term, they could also erode the competitive advantage that has encouraged billions of naira in investments in assembly plants, component manufacturing and automotive infrastructure over the past decade.
NAMA’s Chairman, Bawo Omagbitse, said affordability for consumers and industrial protection should not be viewed as competing objectives.
«”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.»
Import Surge Raises Fresh Concerns
Backing its position with official statistics, the association cited Nigerian Ports Authority data showing that vehicle imports climbed by 67 per cent year-on-year, rising from 35,262 units in the first quarter of 2025 to 58,870 units during the corresponding period in 2026.
According to NAMA, the sharp increase reflects importers positioning ahead of anticipated reductions in import duties for fully built vehicles, a trend the association believes could accelerate once the new tariff measures take full effect.
Industry analysts argue that sustained growth in fully built vehicle imports could significantly reduce local assembly volumes, discourage fresh investments and delay Nigeria’s aspirations of developing a comprehensive automotive value chain.
The association warned that weaker local production would also affect investments in welding and painting facilities, plastics manufacturing, tyre production, batteries, automotive glass and other critical components that support industrialisation and employment.
Lessons from Global Automotive Leaders
While expressing support for the government’s objectives of improving affordability, enhancing revenue collection and strengthening regional trade integration, NAMA maintained that successful automotive economies achieved these goals only after establishing strong industrial foundations.
The association’s Executive Director and Chief Executive Officer, Dr. Harpreet Singh, noted that countries such as Thailand, Morocco, South Africa and China first invested heavily in production incentives, supplier development programmes, export support and manufacturing infrastructure before progressively opening their markets to greater competition.
“Our request is simply that these gains be sequenced with the industrial incentives that every successful automotive economy put in place.”