Nigeria’s $4.5 Billion Annual Vehicle Import Bill Highlights Urgent Need for Local Production
Nigeria currently spends approximately $4.5 billion annually on vehicle imports, a figure that underscores massive unharnessed investment opportunities within the domestic automotive sector.
Chibedu Oguegbu, Managing Director of Omma Automotive Company, disclosed this during a capacity-building workshop for the House of Representatives Press Corps in Abuja on Tuesday, February 24, 2026.
Delivering a paper titled “Auto Policy Framework and Investment Opportunities in Nigeria’s Automotive Industry,” Oguegbu emphasized that while the sector contributes a mere 0.4% to Nigeria’s GDP, it has the potential to reach 12% matching the impact of the oil sector.
He noted that localizing just 30% of production could save the country $1.35 billion in foreign exchange and create 150,000 jobs.
Oguegbu drew parallels with global leaders, noting that China’s ascent to becoming the world’s top automobile exporter shipping 30 million vehicles in 2024 was the result of 70 years of consistent industrial policy. He also pointed to Morocco as a regional success story, producing 700,000 vehicles annually worth $17 billion.
To replicate this, he argued that Nigeria must adopt long-term policy consistency by implementing a stable 10-year framework to attract investors and mandating technology transfer through joint ventures that prioritize local content.
He further highlighted the importance of market leverage, utilizing Nigeria’s population and the Africa Continental Free Trade Agreement (AfCFTA) to access a $1.3 trillion continental market.
Additionally, he noted that transitioning to Compressed Natural Gas (CNG) could offer 60-70% fuel cost savings for commercial operators while providing significant environmental benefits.
The workshop, organized by the House Committee on Media and Public Affairs in collaboration with the National Automotive Design and Development Council (NADDC), focused on strengthening legislative reporting.
Oguegbu concluded with a strong appeal to the National Assembly to pass the Automotive Industry Bill into law. This legislation would provide the necessary legal backing for the National Automotive Industry Development Policy (NAIDP) 2023–2033 and establish a dedicated Automotive Development Fund to drive the sector forward.
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