Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

 

Nigeria’s ambition to build a thriving local automotive industry is facing mounting pressure as the country’s spending on imported vehicles and spare parts soared to N6.54 trillion between 2023 and 2025, raising fresh concerns over the survival of indigenous auto manufacturing.

The Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, disclosed the figures in Lagos on Tuesday during the opening of the West African Automotive Summit, where industry stakeholders warned that the nation’s dependence on foreign automotive products was deepening despite ongoing efforts to promote local assembly.

According to him, data obtained from the National Bureau of Statistics showed that imports of transport equipment and spare parts rose sharply from N3.15 trillion in 2023 to N6.54 trillion in 2025, representing a 107 per cent increase within two years.

He added that vehicle imports alone gulped more than N4.3 trillion during the period, underscoring the huge outflow of foreign exchange from Africa’s largest economy.

Osanipin said the trend reflects growing consumer preference for imported vehicles amid persistent concerns over maintenance support, spare parts availability, and technical service delivery within the local automotive ecosystem.

He warned that unless Nigeria develops a reliable after-sales structure capable of supporting locally assembled vehicles, the country may continue to struggle with low patronage of domestic brands and rising dependence on imports.

Speaking on the summit theme, “After-Sales as a Growth Engine,” the NADDC boss argued that the future of the automotive sector extends beyond vehicle sales, stressing that maintenance services, warranties, technical support, and customer satisfaction are now central to industry growth globally.

He noted that countries with strong automotive industries built extensive after-sales networks that not only boosted consumer confidence but also stimulated local manufacturing, job creation, and investment.

According to him, weak after-sales systems discourage buyers, reduce repeat purchases, and undermine investor confidence in the sector.

Osanipin also said the transition toward electric and hybrid vehicles makes technical capacity development more urgent, as mechanics and service personnel would require new skills to manage emerging vehicle technologies.

He disclosed that NADDC is currently partnering with industry stakeholders on technical training, skills acquisition programmes, and policy initiatives aimed at improving service standards across the automotive value chain.

The council further urged automobile companies, dealers, and service providers to strengthen customer support systems and expand access to genuine spare parts nationwide in order to improve confidence in locally assembled vehicles.

Industry stakeholders at the summit also called for stronger local content policies, improved maintenance culture, enhanced technical expertise, and greater collaboration across West Africa to drive sustainable automotive growth in the region.