The National Automotive Design and Development Council (NADDC), Nigeria’s primary automotive regulator, has formally called on the federal government to implement a strategic ban on the importation of vehicle tyres and batteries. The Council warns that the country is currently “exporting wealth” that should be utilized to revitalize local factories. According to industry experts and stakeholders, such a move could save Nigeria over N1 trillion in annual foreign exchange outflows. For the Nigerian economy, this proposal represents a critical crossroads: a choice between continued import dependency or the aggressive pursuit of industrial sovereignty through backward integration.
The economic consequence of the N1 trillion annual drain on automotive imports is a significant weakening of the Naira and the continued exportation of Nigerian jobs to Asian and European manufacturing hubs. Historically, Nigeria was home to vibrant tyre manufacturing plants, such as Dunlop and Michelin, which exited the country due to power inconsistencies and unfavorable trade policies. During a recent high-level briefing, the NADDC emphasized that the continued reliance on foreign components is stifling the growth of the local automotive value chain, preventing Nigeria from becoming a self-sufficient production hub.
Analytically, the call for an import ban aligns with the “Renewed Hope” administration’s focus on domestic production and the National Automotive Industry Development Plan (NAIDP). From a fiscal perspective, the N1 trillion saved could be redirected into critical national infrastructure, reducing the federal government’s reliance on external borrowing. However, experts warn that a ban must be preceded by “supply-side” incentives. Without first ensuring that local manufacturers can meet the national demand, a premature ban could lead to a localized scarcity, driving up transportation costs and further fueling inflationary pressures.
The impact on the burgeoning “Green Economy” is another vital dimension of this proposal. The battery sector, in particular, is central to the global transition toward renewable energy and electric vehicles (EVs). By domesticating battery production, Nigeria could position itself as a regional leader in the assembly of solar power systems and electric mobility solutions. Furthermore, a localized tyre industry would benefit from Nigeria’s comparative advantage in natural rubber production, creating a “circular economy” that connects South-South rubber plantations directly to industrial hubs in Ogun, Lagos, and Anambra states.
Furthermore, the NADDC’s proposal highlights the need for a more robust “Quality Assurance” framework to protect local producers from the dumping of sub-standard and “used” tyres (commonly known as Tokunbo tyres). These low-quality imports not only undermine domestic manufacturers but also pose a significant risk to road safety, contributing to thousands of preventable accidents annually. A ban on imports, supported by strict enforcement from the Standards Organisation of Nigeria (SON), would ensure that the Nigerian market is served by high-quality, locally produced goods that meet international safety standards while providing sustainable employment for thousands of Nigerian youths.
The long-term economic outlook for Nigeria’s industrial sector hinges on the government’s ability to provide a stable “Ease of Doing Business” environment that can support such bold protectionist measures. While the N1 trillion savings target is a compelling fiscal incentive, the success of the policy depends on the provision of consistent power, affordable credit for manufacturers, and the elimination of bureaucratic bottlenecks. If the NADDC’s recommendation is adopted alongside structural reforms, it could transform Nigeria from a consumption-based economy into a manufacturing powerhouse, securing the nation’s industrial future in a competitive post-AfCFTA landscape.
