Nigeria vehicle import cost reaches $4.5B yearly, expert urges local production and consistent policy to unlock automotive sector potential

Nigeria spends approximately $4.5 billion annually on importing vehicles, Managing Director of Omma Automotive, Chibedu Oguegbu, has revealed.

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Oguegbu delivered a presentation titled “Auto policy framework and investment opportunities in Nigeria’s automotive industry” during a one-day capacity-building workshop for members of the House of Representatives Press Corps on Tuesday.

The programme, organised by the House Committee on Media and Public Affairs in collaboration with the National Automotive Design and Development Council, focused on “strengthening sectoral policy communication and legislative reporting on Nigeria’s automotive industry development.”

The industry expert highlighted untapped opportunities in Nigeria’s automotive sector, noting that policy consistency, adequate funding, and political stability could spur local production.

“Nigeria remains the largest automotive market in Africa, yet our sector contributes only 0.4 percent of GDP,” he said.

Oguegbu pointed to China’s industrial success, noting that the country exported 30 million vehicles globally in 2024, a result of over 70 years of consistent industrial policy.

He also said China leads the electric vehicle market, valued at $231 billion, controlling more than 80 percent of global production.

The expert cited Morocco as a model for Africa, producing 700,000 vehicles annually worth $17 billion.

He stressed that most materials for vehicle manufacturing could be sourced locally in Nigeria, creating substantial employment opportunities.

Oguegbu projected that localising 30 percent of vehicle production could save Nigeria $1.35 billion and generate 150,000 jobs.

He also said adopting compressed natural gas could reduce fuel costs by 60–70 percent for commercial operators and that 40 percent local content could tap into a $1.3 billion consumer market under the Africa Continental Free Trade Agreement.

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He urged the National Assembly to pass the automotive industry bill into law to provide legal backing for the National Automotive Industry Development Policy (2023–2033) and establish the Automotive Development Fund, ensuring appropriate funding for local industry programmes.