NADDC Urges Tyre and Battery Import Ban to Save Nigeria N1 Trillion Annually
The National Automotive Design and Development Council (NADDC) has called on the Federal Government to implement a comprehensive ban on the importation of vehicle tyres and batteries. This strategic recommendation is aimed at retaining approximately N1 trillion within the local economy—a sum currently lost to “capital flight” through the massive importation of automotive components. According to the Council’s latest findings, Nigeria spent over N1 trillion on tyre imports alone in 2024, with roughly 80% of these products originating from Asian markets such as China, India, and Thailand.
Oluwemimo Joseph Osanipin, the Director-General of the NADDC, made the case during a sensitisation workshop in Abuja on February 5, 2026. He warned that Nigeria’s continued reliance on foreign-made components is starving local factories of the investment needed to scale. “We are committed to a future where the vehicles on our roads are not only assembled here but are also built with local components manufactured by Nigerian hands,” Osanipin stated. He emphasized that the ban is a critical step toward growing Nigeria’s manufacturing base and, by extension, its GDP.
The Council’s strategy is rooted in the National Automotive Industry Development Plan (NAIDP-2023), which promotes the local sourcing of raw materials like rubber, synthetic rubber, and carbon black. Osanipin highlighted that Nigeria is one of Africa’s leading producers of natural rubber, yet it continues to export the raw material only to import finished tyres. “We cannot continue to export raw materials and import finished products. Where we have a comparative advantage, we must take advantage of it,” he added during the interview, noting that tyre and battery production technologies are less complex entry points for localization compared to full vehicle engines.
From a macroeconomic perspective, domesticating this N1 trillion supply chain is essential for achieving Nigeria’s $1 trillion GDP target. Beyond the fiscal savings, the move is expected to improve public safety and environmental health. The Standards Organisation of Nigeria (SON) supported the Council’s stance, noting that substandard imported tyres are “life-threatening products” that contribute significantly to road accidents. Furthermore, the push for local battery production aligns with Nigeria’s transition toward Electric Vehicles (EVs), with the NADDC prioritizing the domestic manufacture of both lead-acid and lithium-ion battery plates.
Historically, the Nigerian tyre industry was once a vibrant sector before policy inconsistencies and energy challenges led to its decline. The current advocacy for an import ban seeks to reverse this by providing a protected environment for investors. To support this, the NADDC is working with the National Assembly to enact the Auto Industry Bill into law by the second quarter of 2026. This legislation would provide the “legal backing” necessary to give investors the confidence to commit the massive funding required for modern tyre and battery manufacturing plants.
As the Federal Government reviews these recommendations, the focus remains on closing the “supply gap” to ensure that transportation costs do not spike during the transition. Stakeholders have noted that achieving 40% local content within the next five years is a realistic goal if the government provides the necessary incentives, such as tax breaks and affordable credit through the Bank of Industry. For the NADDC, the ultimate goal is to transform Nigeria from a “dumping ground” for used and substandard parts into a primary supplier of automotive components for the entire African continent under the AfCFTA.
