Automotive Sector Seeks Urgent Reform as 52% of Nigerians Remain Mobility-Constrained

Nigeria’s automotive industry is facing renewed scrutiny following concerns that more than half of the country’s population lacks reliable access to transportation.

Industry experts say the situation underscores deep structural weaknesses in vehicle affordability, domestic production capacity and long-standing policy uncertainty.

Speaking at a sector-focused capacity training held for members of the House of Representatives Press Corps, Professor Oscar Odiboh of Delta State University, Abraka, said current data indicates that approximately 52 per cent of Nigerians are unable to access adequate vehicular mobility.

According to him, the affected population cuts across urban low-income earners, semi-urban communities, rural residents and underpaid workers.

The training programme, organised by the National Automotive Design and Development Council (NADDC) in collaboration with the House of Representatives, brought together lawmakers, industry operators and journalists to examine constraints limiting Nigeria’s automotive growth and strategies to reposition the sector.

Odiboh emphasised that improving domestic vehicle manufacturing remains central to solving the mobility gap. He noted that sustainable intervention would require coordinated action between regulators, legislators and private sector investors.

According to him, strengthening local content policies and ensuring strict compliance with quality standards are essential steps toward building a viable automotive ecosystem.

Industry data presented at the event revealed that Nigeria currently produces an estimated 10,000 vehicles annually, compared to Morocco’s output of about 700,000 units per year. While Morocco reportedly generates roughly $17 billion annually from automotive exports, Nigeria spends approximately $4.5 billion each year importing vehicles and related products.

Stakeholders argue that this imbalance continues to exert pressure on foreign exchange demand while limiting job creation within the country.

Chinedu Oguegbu, Managing Director of OMAA, an indigenous automotive firm based in Anambra State, said Nigeria must urgently reposition its production framework to compete regionally.

He highlighted the growing importance of alternative fuel technologies, particularly compressed natural gas (CNG), as a cost-effective and environmentally sustainable option for vehicle operation.

Oguegbu explained that expanding CNG adoption could reduce operational costs for transporters and businesses while leveraging Nigeria’s natural gas reserves.

He added that investment in cleaner energy solutions could also align the country with global automotive transition trends.

The Director General of NADDC, Joseph Osanipin, called on the National Assembly to accelerate legislative action on pending automotive industry bills.

He stressed that long-term investment decisions in vehicle assembly and component manufacturing require regulatory clarity backed by law.

According to Osanipin, while the Nigeria Automotive Industry Development Plan provides strategic direction, the absence of statutory backing limits investor confidence.

He argued that manufacturers considering large-scale capital commitments need assurances that tariff structures, fiscal incentives and local content requirements will remain stable beyond administrative changes.

The proposed legislation seeks to institutionalise policy incentives, strengthen oversight of vehicle importation, promote backward integration and enhance local component manufacturing.

Industry stakeholders maintain that without legal certainty, Nigeria risks losing competitiveness within the African Continental Free Trade Area framework.

The council disclosed that it has trained over 15,000 technicians nationwide to strengthen after-sales services and technical capacity, signaling progress in workforce development.

However, experts insist that broader structural reforms remain necessary to unlock the sector’s full potential.

Lawmakers at the event acknowledged the strategic role of the automotive industry in industrialisation, employment generation and economic diversification. They stressed the need for improved policy communication and informed legislative reporting to support sectoral growth.

Nigeria introduced its automotive reform agenda in 2013 with the aim of reviving local assembly and reducing import dependence. More than a decade later, industry players argue that comprehensive legislative backing is critical to translating policy intent into measurable industrial expansion.

Stakeholders concluded that bridging Nigeria’s mobility gap will require a combination of affordable financing, stronger local manufacturing capacity, alternative energy adoption and long-term policy stability. Without decisive reforms, the sector’s ability to serve over half of the population remains constrained.