Proposed Ban on Importation of Older Cars to Boost Local Manufacturing
The proposal to ban the importation of cars manufactured between 2000 and 2007 into Nigeria has been put forth by Mr. Joseph Osanipin, the Director-General of the National Automotive Design and Development Council. The aim of this initiative is to encourage local manufacturing of vehicles and prevent Nigeria from becoming a dumping ground for older automobiles.
During a public sector engagement on the implementation of the Nigerian Automotive Industry Development Plan (NAIDP 2023-2033) in Abuja, Osanipin emphasized the need to establish a maximum age limit of 20 years for imported used vehicles. He stressed the importance of collaborating with relevant agencies to enforce this measure and ensure that only vehicles meeting specified standards are allowed into the country.
Furthermore, Osanipin highlighted the issue of certain vehicles entering Nigeria without airbags and emphasized the need to address this practice. He underscored the importance of engaging stakeholders in formulating and executing the Federal Government’s automotive policy.
The NADDC was established to address critical challenges in the sector, including low production levels, inadequate local content, and limited financial resources. Osanipin discussed the council’s plans to implement a “deletion policy” as part of the NAIDP, aimed at promoting local content and identifying components that can be produced within the country.
The proposed ban on the importation of older cars aligns with efforts to boost local manufacturing and reduce the country’s reliance on imported vehicles. According to data from the International Trade Administration of the United States, Nigeria’s annual vehicle demand stands at 720,000 units, while local factories only produce 14,000 units annually, resulting in a reliance on imports to meet the shortfall.
The Nigeria Bureau of Statistics (NBS) revealed that in the first nine months of 2023, Nigeria imported used vehicles worth N926.09 billion from the United States and the United Arab Emirates. This underscores the significant impact of imported vehicles on the country’s economy and the need to enhance local manufacturing capabilities.
In conclusion, the proposed ban on the importation of older cars is a proactive step towards promoting local manufacturing and enhancing the automotive industry in Nigeria. By collaborating with relevant agencies and enforcing specified standards, the country can reduce its reliance on imported vehicles and stimulate the growth of domestic production. These measures are essential for creating a robust and sustainable automotive sector in Nigeria.
