JAC Motors Pushes for Swift Approval of Nigeria’s Automotive Policy

JAC Motors has renewed calls for the Federal Government and the National Assembly to expedite the passage of Nigeria’s long-awaited automotive policy, describing it as critical to the survival and growth of the country’s automobile industry. The company, one of the leading players in Nigeria’s vehicle assembly and distribution space, stressed that a clear and enforceable framework is urgently required to stimulate local production, attract fresh investment, and reduce the country’s dependence on imported vehicles.

Speaking on the state of the auto industry, the company emphasized that Nigeria’s current reliance on used vehicle imports is unsustainable and damaging to both economic growth and environmental health. With over 70 percent of vehicles on Nigerian roads being imported second-hand cars, JAC Motors argued that the absence of a comprehensive and stable automotive policy has discouraged serious investment in local manufacturing. Without immediate legislative backing, the company warned, Nigeria risks falling further behind in its quest to build a globally competitive automotive sector.

JAC Motors highlighted that the auto policy, which has been in various stages of review for years, is designed to provide incentives for local assembly plants, impose tariffs that encourage domestic production, and create a framework for technology transfer. However, frequent changes and delays have created uncertainty, leaving investors reluctant to commit long-term funds. The firm urged policymakers to act with urgency, noting that neighboring countries have already advanced with stable policies, thereby attracting global automakers and building stronger supply chains.

The company also linked the passage of the automotive policy to job creation and industrial development. According to JAC Motors, Nigeria has the market size and workforce capacity to become a major automotive hub in Africa, but this potential remains largely untapped. By providing clear policy direction, the government could encourage local assembly plants to expand, leading to thousands of direct and indirect jobs across engineering, manufacturing, distribution, and after-sales services.

The issue of foreign exchange was also raised, with JAC Motors pointing out that Nigeria spends billions of dollars annually on vehicle imports, putting pressure on scarce forex reserves. A strong automotive policy, the company maintained, would significantly reduce the import bill by shifting demand toward locally produced cars. This, in turn, would support the government’s broader economic diversification goals while strengthening the naira and reducing vulnerability to external shocks.

Industry experts have echoed JAC Motors’ concerns, noting that policy inconsistency has long been one of the biggest obstacles facing Nigeria’s industrial sectors. In the case of the auto industry, inconsistent tariffs and weak enforcement of import regulations have left local assemblers at a disadvantage compared to importers of used cars. Analysts argue that a firm commitment from government, backed by legislation, would signal seriousness to investors and international partners.

The push for the auto policy is also tied to Nigeria’s climate and sustainability goals. JAC Motors stressed that many imported vehicles are outdated models that fail to meet modern emission standards, thereby worsening pollution in cities and contributing to public health challenges. By promoting local assembly and eventually shifting to electric and hybrid vehicles, Nigeria could begin transitioning to cleaner mobility solutions. This aligns with global trends where countries are prioritizing green transportation in response to climate change.

Another dimension highlighted is regional competitiveness. Countries such as South Africa and Morocco have already positioned themselves as leading automotive hubs on the continent by implementing consistent policies and attracting global carmakers. JAC Motors warned that if Nigeria fails to act quickly, it risks losing out on investment opportunities to these countries despite having a larger market. A stable policy, the company argued, would not only draw investors but also integrate Nigeria into regional and global automotive value chains.

The company further noted that the delay in implementing a robust policy affects not only assemblers but also consumers, who continue to face rising costs due to import dependence. Locally assembled vehicles could be made more affordable if production scaled up under a favorable policy environment, giving Nigerian buyers access to quality cars at competitive prices. JAC Motors believes this would also help curb the influx of unsafe, substandard vehicles that dominate the used car market.

Calls for the policy’s passage come at a time when Nigeria is seeking ways to stimulate industrialization and reduce unemployment. The Federal Government has repeatedly emphasized its commitment to manufacturing and local production, but progress has been slow. Stakeholders argue that quick legislative action on the auto policy would be a tangible step in demonstrating that commitment while boosting investor confidence in the economy.

As JAC Motors presses for action, the debate over Nigeria’s automotive future is likely to intensify. Supporters of the policy argue that it represents a long-term investment in industrial growth, while skeptics caution about the potential impact of tariffs on consumers in the short term. However, with growing demand for vehicles, mounting forex challenges, and rising youth unemployment, the consensus among industry leaders is that Nigeria can no longer afford further delays.

In conclusion, JAC Motors’ call for the urgent passage of the automotive policy underscores a broader sentiment within the industry—that Nigeria must move beyond rhetoric to implementation. A stable and supportive policy environment would not only transform the automobile sector but also contribute significantly to job creation, economic diversification, and sustainable growth. For Nigeria, the choice is clear: act decisively now or risk being left behind in a rapidly evolving global auto industry.