In a sobering assessment of the nation’s industrial drainage, Chibedu Oguegbu, Managing Director of Omma Automotive Company, has revealed that Nigeria spends approximately $4.5 billion annually on vehicle imports. Speaking at a capacity-building workshop for the House of Representatives Press Corps on Tuesday, February 24, 2026, Oguegbu emphasized that this capital flight persists despite Nigeria remaining the largest potential automotive market on the African continent.
The economic and structural consequence of this reliance on foreign vehicles is a stunted industrial sector that currently contributes a mere 0.4% to the national GDP. Oguegbu argued that with the right policy framework, the automotive industry could rival the oil sector’s contribution, potentially reaching 12% of GDP. By localizing just 30% of production, Nigeria could save $1.35 billion in foreign exchange and generate over 150,000 direct jobs, transforming the country from a consumer hub into a manufacturing powerhouse.
Analytically, Oguegbu drew sharp contrasts between Nigeria’s current trajectory and the success stories of global and regional leaders. He noted that China’s dominance—exporting 30 million vehicles in 2024 and controlling 80% of the $231 billion electric vehicle (EV) market was the product of 70 years of unwavering policy consistency. Closer to home, he cited Morocco, which now produces 700,000 vehicles annually worth $17 billion, as the gold standard for African automotive industrialization through strategic joint ventures and local content mandates.
The impact on “Legislative Action and Sectoral Growth” is a vital dimension of Oguegbu’s presentation. He urged the National Assembly to prioritize the passage of the Automotive Industry Bill to provide permanent legal backing to the National Automotive Industry Development Policy (NAIDP) 2023–2033. This legislation is seen as the key to establishing a dedicated Automotive Development Fund, which would provide the patient capital necessary for local manufacturers to scale and compete globally.
Furthermore, the transition to Compressed Natural Gas (CNG) and the opportunities presented by the African Continental Free Trade Agreement (AfCFTA) were highlighted as immediate growth levers. Oguegbu noted that CNG adoption could reduce fuel costs for commercial operators by 60–70%, while achieving 40% local content would unlock access to a $1.3 trillion continental market. He stressed that Nigeria must “leapfrog” traditional hurdles by mandating technology transfer and knowledge sharing through mandatory joint ventures with international partners.
The long-term outlook for Nigeria’s automotive industry depends on the government’s ability to provide political stability and long-term policy certainty. Oguegbu’s call to action serves as a roadmap for the “New Nigeria” industrial agenda: move away from raw consumption, leverage the nation’s 200-million-strong market, and codify the industry’s future in law. For now, the $4.5 billion annual import bill remains a stark reminder of the “unharnessed opportunities” that continue to drain the nation’s treasury.
