The proposal by the National Automotive Design and Development Council (NADDC) to ban the importation of used vehicles older than 20 years has generated mixed reactions among stakeholders in Nigeria’s automotive industry. The move aims to prevent the country from becoming a dumping ground for old cars and to stimulate the growth of the local automobile sector.
Joseph Osanipin, the Director-General of NADDC, announced the proposal and mentioned plans to collaborate with relevant authorities to enforce age limits on used cars and establish minimum standards for imported vehicles. The initiative is part of the council’s strategy to boost local content by promoting the production of various components domestically, including tires, plastic, foams, leather, and batteries.
Nigeria heavily relies on imports to meet its annual vehicle demand of 720,000 units, as local factories can only produce a fraction, approximately 14,000 units annually. Despite various attempts to revive the local automotive industry, imports remain crucial to meeting consumer needs.
Data from the International Trade Administration of the United States revealed that Nigeria imported used vehicles valued at N926.09 billion from the United States and the United Arab Emirates in the first nine months of 2023. The proposal to ban the importation of used vehicles is not a new idea, as previous suggestions included bans on vehicles older than seven years.
While some industry experts see the proposal as a potential catalyst to stimulate local production, others argue that the industry’s vitality depends on the influx of imported vehicles, including damaged ones that serve as a critical source of spare parts. Stakeholders express concerns about the potential impact on the affordability of vehicles for the average Nigerian and emphasize the need for a balanced approach that considers environmental concerns and the industry’s development.
The National Automotive Industry Development Plan (NAIDP 2023-2033) was established to reduce dependence on vehicle imports and promote local production. However, the plan is yet to receive the legal backing required to become law. As the debate continues, the automotive industry in Nigeria faces the challenge of finding a sustainable balance between stimulating local production, ensuring affordability, and addressing environmental concerns.
