The Nigerian Automotive Manufacturers Association (NAMA) has urged the federal government to bolster its 2026 fiscal policy reforms with robust industrial protections. The group cautioned that liberalizing tariffs without sufficient safeguards risks harming investments in the country’s vehicle assembly sector.
In a formal submission to the Minister of Industry, Trade and Investment, NAMA acknowledged the government’s aim to align trade policies with the African Continental Free Trade Area (AfCFTA) and the ECOWAS Common External Tariff. However, NAMA Chairman Bawo Omagbitse and CEO Dr. Harpreet Singh warned that narrowing the duty gap between imported vehicles and those assembled locally would likely undermine the competitiveness of domestic plants.
Data from the Nigerian Ports Authority revealed a 67 per cent jump in vehicle imports during the first quarter of 2026, which the association attributed to importers anticipating lower taxes. NAMA emphasized that Nigeria’s automotive sector remains in its early stages and requires ongoing support to achieve economies of scale. They pointed to successful examples in nations like South Africa, Morocco, and Thailand, where countries nurtured their industries with production incentives and supplier programs before opening their markets to global competition.
To prevent Nigeria from becoming merely a consumption hub rather than a manufacturing center, the association proposed several measures. These include restoring a wider tariff differential, prioritizing foreign exchange for industrial inputs, and accelerating the passage of the Nigeria Automotive Industry Development Plan (NAIDP) into law. NAMA reiterated its willingness to collaborate with government officials to ensure that economic reforms promote long-term sustainable growth.
