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Confusion persists as Customs confirms vehicle import duty now 20%

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Importers of new and used vehicles are now paying 20 per cent as duty to the coffers of the government, the Nigeria Customs Service has said.

The confirmation came on Monday after importers and clearing agents had cried out that they were still paying the old rate of 35 per cent as import duty even when the NCS had announced the slash.

In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty was for both used and new imported vehicles.

In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty is for both used and new imported vehicles.
The statement read in part, “On Friday, the 1st of April 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in line with the World Customs Organisation (WCO) five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.
“It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. The focus of NCS is on the implementation of these policies in the hope that it achieves its desired objectives in line with the National Automotive Policy and other fiscal policies of the government.
“The NCS has also activated the use of Chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialisation through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.
“It should also be noted that the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.
“In Chapter 98 of the current CET – bonafide assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of 0% and 10% duty rate respectively. While within ECOWAS, duty rate for the same items are five per cent and 10 per cent respectively.”
But the Federal Government in the draft 2020 Finance Bill had proposed a reduction in duties on tractors and vehicles for transportation of goods from 35 per cent to 10 per cent while the duties on vehicles for transportation of persons (cars) were reduced from 35 to five per cent.

This led to was an uproar from investors in the nation’s auto manufacturing sector.

Vice President Yemi dismissed the fear, saying the decision to slash duty on imported vehicles was not an attempt by the government to kill the nation’s automobile manufacturing industry but to reduce the cost of transportation in the face of growing economic challenges.

He also stressed that it was to meet the huge vehicle need of the country, put at an annual demand of 720,000 against 14,000 local production capacities.

 

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Forland, TSS Motors strengthen technical capacity with specialised truck training

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An instructor taking the TSS Motors technical team through a practical session with a Forland light truck

Forland, TSS Motors strengthen technical capacity with specialised truck training

 

Forland Motors, one of the world’s leading manufacturers of light commercial trucks, has strengthened its partnership with local assembler and distributor, Transit Support Services Ltd (TSS), through a specialised three-day technical training programme aimed at boosting the competence of technicians handling the brand’s vehicles in Nigeria.

The programme was organised to equip the TSS technical team, comprising assembly and after-sales technicians, with in-depth knowledge of Forland light trucks, which are assembled and distributed in Nigeria by the company. The training covered assembly, installation, troubleshooting, and maintenance, with the goal of ensuring high service standards in both vehicle assembly and after-sales support.

The training, held at the TSS Motors Training Centre on Ikorodu Road in the Anthony area of Lagos, was facilitated by Forland instructors who arrived from China, alongside TSS technical personnel drawn from Lagos, Enugu, and Abuja.

Also in attendance were technical personnel from Yuchai, the major supplier of engines to Forland trucks. Yuchai is one of China’s largest manufacturers of powertrain solutions.

Forland training at TSS office in Lagos

Providing further insight into the programme, the Head of After-Sales Services at TSS, Mrs. Phebian Iwalokun, said the training focused on general maintenance, engine servicing, and preventive maintenance programmes.

According to her, the initiative was designed to ensure that TSS technicians are fully equipped to manage the growing number of Forland vehicles operating in Nigeria.

She added that continuous skill enhancement had become necessary as TSS prepares for an expansion in production capacity amid increasing demand for Forland trucks across the country.

“Forland trucks are currently gaining ground in Nigeria, with over 1,000 units already in operation, mainly among fast-moving consumer goods companies, logistics firms, and last-mile distribution operators,” Iwalokun stated.

A subsidiary of ABC Transport Plc, Transit Support Services assembles Forland trucks at its plant in Enugu and provides technical and after-sales support to customers nationwide.

Forland has continued to build a strong reputation globally as a successful commercial vehicle and light-truck brand, with its products performing strongly in several international markets.

ABC Transport Group founder, Mr. Frank Nneji (right), presented certificates to the participants

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Nigeria Targets Additional 70,000 Annual Vehicle Output, West African Export with Hybrid Motors, Chinese Firm EV Deal

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L-R: Chief Executive Officer, Launch Design, Wang Xun, and Chief Executive Officer, Hybrid Motors Nigeria, Jubril Arogundade, during the signing of a strategic partnership agreement to establish Electric Vehicle (EV) manufacturing facilities in Lagos and Abuja, in Shanghai, recently.

Nigeria Targets Additional 70,000 Annual Vehicle Output, West African Export with Hybrid Motors, Chinese Firm EV Deal

 

Launch Design Shanghai and Hybrid Motors Nigeria have signed a strategic partnership agreement to establish electric vehicle manufacturing plants in Lagos and Abuja, a move expected to raise Nigeria’s annual vehicle assembly capacity by 70,000 units and strengthen automobile exports to neighbouring West African countries.

The agreement, signed in Shanghai on May 8, 2026, will drive the production of “Acely,” Hybrid Motors Nigeria’s indigenous vehicle brand designed specifically for Nigerian roads, climate and mobility needs.

The collaboration is being positioned as a major boost to Nigeria’s automotive industrialisation drive, with the two firms aiming to transform the country into a regional hub for vehicle production and export.

Under the partnership, the companies will develop two manufacturing facilities with a combined annual production capacity of 70,000 vehicles at full operation.

The Lagos plant, located along the Lekki-Epe corridor, will serve as the main production and assembly centre with an installed capacity of 50,000 units yearly.

Its proximity to the Lekki Deep Sea Port is expected to support large-scale exports to regional markets including Ghana, Benin Republic, Togo and Côte d’Ivoire.

Industry stakeholders believe the export-oriented facility could significantly expand Nigeria’s automotive footprint across West Africa while reducing dependence on imported vehicles within the region.

The second facility, to be located within the Free Zone Business Area of Centenary Economic City in Abuja, will have an annual production capacity of 20,000 units and focus on supplying Northern Nigeria and neighbouring Sahel markets.

The firms said the dual-plant strategy would improve logistics efficiency, lower production costs and create thousands of direct and indirect jobs across the automotive value chain.

Speaking during the signing ceremony, Chief Executive Officer of Hybrid Motors Nigeria, Mr. Jubril Arogundade, described the project as a defining moment for Nigeria’s automotive future.

“This partnership is more than a business agreement; it is a commitment to building Nigeria’s automotive future,” Arogundade said.

“With Acely, we are demonstrating that globally competitive vehicles can be conceived, designed and assembled in Nigeria by Nigerians for both local and international markets.”

He added that the partnership with Launch Design Shanghai would bring advanced automotive engineering and manufacturing expertise into Nigeria, helping the Acely brand meet international standards while retaining local identity.

Chief Executive Officer of Launch Design, Mr. Wang Xun, said the collaboration would contribute to the emergence of a stronger automotive manufacturing ecosystem in Africa.

“Our turnkey engineering capabilities combined with Hybrid Motors Nigeria’s understanding of the local market create a strong foundation for success,” Wang said.

“Together, we are not only building vehicles but helping to establish a sustainable automotive industry for the region.”

The companies said Acely vehicles would focus on local assembly, energy efficiency and advanced electric and hybrid technologies suited to African operating conditions.

Analysts said the project could stimulate local component manufacturing, encourage technology transfer and deepen technical skills development within Nigeria’s automotive sector.

The initiative is also expected to conserve foreign exchange by reducing vehicle imports while positioning Nigeria as a competitive exporter of made-in-Nigeria vehicles within the ECOWAS sub-region.

Both firms noted that the investment aligns with the Federal Government’s National Automotive Industry Development Plan aimed at increasing local vehicle production, attracting investments and accelerating industrial growth.

“With facilities in Lagos and Abuja serving distinct but complementary markets across Nigeria and the wider region, we are laying the foundation for a new era of mobility that is locally rooted, globally competitive and sustainably driven,” Arogundade added.

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ASPMDA Targets Bigger Role in Nigeria’s Automotive Future, vows tougher sanctions against fake parts

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ASPMDA Targets Bigger Role in Nigeria’s Automotive Future, vows tougher sanctions against fake parts dealers

The President of the Auto Spare Parts and Machinery Dealers Association, ASPMDA, Ngozi Emechebe, has called for a stronger partnership with the Federal Government to reposition Nigeria’s automotive industry, deepen local production and tackle the menace of counterfeit spare parts.
Speaking with journalists on the sidelines of the West Africa Automotive Show in Lagos, Emechebe said ASPMDA was transforming from a conventional trading cluster into a modern automotive business hub capable of supporting Nigeria’s industrialisation drive.
He said the association was ready to work closely with government agencies and key stakeholders to advance its “Keep Nigeria Moving” vision and strengthen the country’s automotive value chain.
According to him, ASPMDA has evolved significantly from its early days of informal trading into a structured organisation operating from a world-class facility designed to support large-scale automotive commerce and industry collaboration.
“All the time I have been coming to this fair, I have been dreaming of how to launch ASPMDA into the centre of this country,” he said.
“ASPMDA is a highly organised trading association. We have moved from street trading and now we have beautiful, world-class premises.”
Emechebe disclosed that discussions were already ongoing with the National Automotive Design and Development Council, NADDC, on possible areas of collaboration aimed at accelerating automotive development in Nigeria.
He explained that the proposed partnership would focus on creating policies, institutional support and business-friendly initiatives that would improve the operations of spare parts dealers and other local automotive businesses.
“We need government support and partnership. We have a part to play in Nigeria’s automotive development agenda,” he said.
The ASPMDA president also commended the Federal Government’s vehicle financing initiatives targeted at Nigerian youths, describing them as a positive step towards expanding mobility and encouraging participation in the automotive ecosystem.
On the persistent challenge of fake and substandard spare parts, Emechebe said the association had intensified efforts to sanitise the market through stricter enforcement measures and closer collaboration with regulatory authorities.
He revealed that ASPMDA had already allocated office spaces within its complex to agencies responsible for monitoring product standards and combating counterfeit goods.
“We want to make it a cultural matter so that when you violate it, you know where you are headed,” he said.
“If you bring in your product, defend it to the end consumer and stand by it. Adulteration is not allowed.”
Although he declined to disclose the exact penalties for offenders, Emechebe warned that severe sanctions awaited anyone found dealing in counterfeit products within the market.
He also advocated increased local manufacturing of automotive components, insisting that Nigerian-made parts could outperform imported alternatives if produced according to standards tailored to local operating conditions.
“Local production is even better than foreign production,” he said.
“Whatever you want from a person, you must give it a standard Nigerians will see and buy — standards that fit Nigeria.”
Emechebe further disclosed that some ASPMDA members were already involved in the production of automotive components, adding that broader manufacturing partnerships could be explored as the industry expands.
However, he cautioned against poorly managed joint ventures, warning that many business partnerships collapse due to weak management structures and lack of accountability.
The West Africa Automotive Show attracted regulators, manufacturers, dealers and other stakeholders from across the region to discuss emerging opportunities, policy direction and challenges confronting the automotive industry in West Africa.

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