In an effort to curb the influx of aged automobiles and stimulate local industry growth, the National Automotive Design and Development Council (NADDC) is advocating for a ban on the importation of used vehicles older than two decades.
The Director-General of NADDC, Joseph Osanipin, revealed plans to collaborate with relevant authorities to enforce age restrictions and establish minimum standards for imported vehicles.
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Osanipin explained, “We are initiating a deletion policy outlined in the revised National Automotive Industry Development Plan (NAIDP) to foster local content development.
By identifying parts such as tires, plastic, foams, leather, and batteries that can be produced in Nigeria, we aim to reduce imports and promote self-sufficiency.”
The NADDC Director-General emphasized that producing local components would facilitate the elimination of imported items, aligning with the nation’s goal of boosting the local automobile industry.
Despite efforts to revive the domestic automotive sector, Nigeria relies heavily on imports for its vehicle needs.
Data from the International Trade Administration of the United States reveals a substantial shortfall, with local factories producing only 14,000 units annually against an annual demand of 720,000 units.
In the first nine months of 2023, Nigeria imported used vehicles valued at N926.09 billion from the United States and the United Arab Emirates, according to the National Bureau of Statistics.
The call for a ban on used vehicle imports echoes past proposals, including one by the former Controller-General of the Nigeria Customs Service, Hameed Ali, who advocated for restricting vehicles older than seven years.
Industry experts argue that such a ban could be a catalyst for local production, while others contend that the vitality of the industry relies on the influx of imported vehicles, including damaged ones, which serve as crucial sources of spare parts.
Battery and Power Systems Analyst Victor Ezeali emphasized the need for Nigeria to strengthen its steel industry to boost local production.
He expressed concern about vehicles not meeting safety standards after a decade of use.
While the National Automotive Industry Development Plan (NAIDP 2023-2033) seeks to reduce dependence on imports and promote local production, it awaits the legal backing needed to become law.
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Experts highlight the environmental impact of used car exports, citing data from the United Nations Environment Programme indicating that car pollution from imported vehicles caused nearly 250,000 deaths in Africa between 1990 and 2013.
In response to concerns about affordability, the Chairman of Automedics Motor International, Yusuf Adah, cautioned against banning imports of vehicles from 2007 and below, citing their affordability for the average Nigerian.
He explained that the industry primarily imports accident vehicles and utilizes salvaged parts to maintain the existing vehicle population within the country.