Nigerian Govt Proposes Restrictions on Foreign Cars to Boost Local Auto Industry

• The Nigerian government is considering restricting foreign car imports to aid the local auto industry and boost job creation.
• Minister of State for Industry stressed that Nigeria should focus on creating jobs within the country instead of helping to create jobs in other countries
• He emphasized the need for bold actions and clear timelines to drive industrial growth through the newly launched Industrial Revolution Work Group (IRWG)

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

The Nigerian government is thinking about limiting the importation of foreign cars.

Minister of State for Industry, John Owan Enoh, mentioned this during the launch of the Industrial Revolution Work Group in Abuja.

He pointed out that the government and its agencies buy a large number of Toyota vehicles every year, but the company does not do much to support Nigeria’s automobile industry.

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Enoh stressed that Nigeria should focus on creating jobs within the country instead of helping to create jobs in other countries.

He said:

“At some point, we need to be dramatic and take dramatic positions; otherwise, things will not change. We need to get to a point where we will give a timeline.

“Is it in the next 12 months? Is it in the next 18 months? If we do not find anything evidently in our country to demonstrate their work, we will still ban some classes of vehicles.”

Enoh described the IRWG as a key initiative for economic growth. He said it aligns with the Presidential Council on Industrial Revitalization Roadmap, which was approved by the Federal Government in October 2023 and is led by President Bola Ahmed Tinubu.

He explained that the IRWG plans to reshape the industrial sector by working with stakeholders, developing policies based on facts, and ensuring steady implementation.

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The federal government has actively supported local vehicle manufacturing and assembly, backing companies like Innoson Vehicle Manufacturing.

As part of its commitment to growing Nigeria’s auto industry, the Tinubu administration has made significant investments in developing electric and Compressed Natural Gas (CNG) vehicles.

Former Minister of Industry, Trade, and Investment, Olusegun Aganga, said Nigeria has struggled for years with slow industrial growth, outdated policies, and poor infrastructure.

He emphasized that for the IRWG to be successful, there must be clear plans with specific goals, strict adherence to deadlines, accountability measures, and ongoing collaboration with both local and foreign investors.

The Nigeria Automotive Design and Development Council (NADDC) previously announced the federal government’s plan to tighten regulations on used car imports and sales.

This decision comes in response to the growing influx of unsafe, accident-prone, and condemned vehicles, many of which are smuggled into the country.

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FG invites Nigerians to convert petrol, diesel vehicles

Meanwhile, Legit.ng reported that the federal government has invited vehicle owners to convert their petrol and diesel-powered engines to CNG.

The government stated that the conversion would be at no cost to vehicle owners nationwide.

It also unveiled conversion centres across the country, offering free kits in partnership with CNG companies.

Source: Legit.ng