The National Automotive Design and Development Council (NADDC) says Nigeria will impose a ban on the importation of used vehicles starting January 2026 to stimulate domestic production and reduce the country’s massive foreign exchange expenditure.
Director General, NADDC, Oluwemimo Joseph Osanipin, who disclosed this at a media session in Abuja said the move will enhance government’s drive for local industrialization.
He said Nigeria currently spends more on the importation of vehicle spare parts than it does on importing whole vehicles.
Mr Osanipin also said the agency is pivoting its strategy toward the manufacturing of vehicle components which is intended to utilize the trade windows provided by the African Continental Free Trade Area (AfCFTA), to position Nigeria as a primary supplier of automotive parts across the continent.
Acknowledging the high entry barrier for investors, the DG noted that the automotive sector requires significant capital, with a single component factory costing between $3 million and $5 million to establish.
He however, noted that to ensure the workforce meets the new industrial demands, the NADDC is introducing various grades of specialized training, designed to provide proper certification for technicians and engineers in line with international best practices, moving the local industry toward global competitiveness.
