Auto Council Urges FG: Ban Import of 2000-2007 Model Cars for Automotive Evolution

The suggestion to impose a ban on the importation of used vehicles from the years 2000 to 2007 into Nigeria was put forward by Joseph Osanipin, the Director-General of the National Automotive Design and Development Council (NADDC). This proposal was made during a Public Sector Engagement on the Implementation of the Nigerian Automotive Industry Development Plan (NAIDP 2023-2033) that took place in Abuja on a Tuesday.

Osanipin outlined the NADDC’s intent to collaborate with pertinent agencies to establish a maximum age limit of 20 years for imported used vehicles. The primary objective behind this initiative is to invigorate the local assembly and manufacturing of vehicles while simultaneously preventing Nigeria from becoming a dumping ground for aging automobiles.

In articulating his stance, Osanipin expressed concern, stating, “Again, we need to talk to our colleagues, especially in customs, to start putting age limits on used cars. We cannot allow Nigeria to be a dumping ground for used vehicles.” He emphasized that the influx of used vehicles from the years 2000 to 2007 is unacceptable and assured that collaborative efforts with relevant authorities would be made to address this issue. Additionally, he highlighted the necessity of specifying minimum standards for vehicles allowed into Nigeria.

A significant aspect of Osanipin’s proposal focused on the local production of car parts. He drew attention to the ongoing allowance of certain vehicles without airbags into the country, urging an end to this practice. The Director-General underscored the importance of engaging stakeholders in the formulation and execution of the Federal Government’s automotive policy.

Osanipin elaborated on the mission of the NADDC, which was established to address critical challenges within the sector, including low production levels, insufficient local content, and limited financial resources. He shared insights into the planned implementation of a “deletion policy” outlined in the NAIDP, aiming to boost local content. “That’s the only way we can develop our parts. We are working to identify the parts we can produce in Nigeria,” he explained, emphasizing the production of components such as tires, plastic, foams, leather, and batteries.

According to Osanipin, the identification and production of these local components would empower the council and relevant agencies to eliminate the importation of items that can be locally manufactured in the country. This strategic move aligns with the broader goal of fostering self-sufficiency and reducing dependence on foreign imports.

Despite notable progress in recent years, the Nigerian automotive industry still lags behind its counterparts in advanced economies. The International Trade Administration of the United States reports that Nigeria’s annual vehicle demand is 720,000 units, while local factories can only produce 14,000 units annually, leading to a significant shortfall that is filled by imports.

Data from the Nigeria Bureau of Statistics (NBS) reveals 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. The import figures for used cars from these countries stood at N59.53 billion in the first quarter, rising to N721.79 billion in the second quarter, and decreasing to N144.77 billion in the third quarter.

In conclusion, Osanipin’s proposal reflects a strategic initiative to reshape the dynamics of the Nigerian automotive industry, fostering local production, and reducing reliance on foreign imports. The collaboration with relevant authorities and the implementation of a deletion policy underscore the commitment to developing a self-sufficient and competitive automotive sector in the country.