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.

Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

Nigeria’s daily consumption of Premium Motor Spirit (PMS), popularly known as petrol, increased by 10.78 per cent in April 2026 despite higher pump prices across the country, according to new data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The report showed that Nigeria’s petrol consumption rose to 52.4 million litres per day in April, up from 47.3 million litres recorded in March.

The increase came amid another sharp rise in the retail price of petrol following the deregulation of the downstream petroleum sector. Average petrol prices in Nigeria climbed to about N1,370 per litre in April from N1,180 per litre in March, representing a 13.8 per cent increase within one month.

Despite the surge in pump prices, fuel demand remained strong, highlighting the continued dependence of millions of Nigerians on petrol for transportation, electricity generation and business operations amid persistent power supply challenges.

According to the NMDPRA, combined fuel supply from the Dangote Refinery and imported petrol also rose by 10.7 per cent to 44.4 million litres per day in April, compared to 40.1 million litres supplied daily in March.

A breakdown of the figures revealed that supply from the 650,000 barrels-per-day Dangote Refinery increased significantly by 19 per cent to 40.7 million litres per day in April from 34.2 million litres in March.

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At the same time, petrol imports into Nigeria dropped sharply by 37.3 per cent to 3.7 million litres daily from 5.9 million litres recorded in March, reflecting the growing role of local refining in meeting domestic fuel demand.

Industry analysts say the latest figures underscore the increasing dominance of the Dangote Refinery in Nigeria’s downstream oil sector as the country gradually reduces dependence on imported fuel.

The NMDPRA further disclosed that the Dangote Refinery achieved an average capacity utilisation rate of 99.12 per cent in April, while the government-owned refineries in Port Harcourt, Warri and Kaduna remained inactive during the period.

The report also showed a major decline in imported crude oil, which fell by 95.65 per cent to 0.41 million barrels in April from 9.43 million barrels recorded in March.

Meanwhile, crude oil supply from Nigerian upstream operators to local refineries rose by 56 per cent to 17.99 million barrels in April compared to 11.48 million barrels supplied in March.

The development comes as the Federal Government intensifies efforts to boost local refining capacity, reduce pressure on foreign exchange and strengthen energy security.

In a related development, figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria’s crude oil production increased slightly to 1.663 million barrels per day in April 2026 from 1.546 million barrels per day recorded in March, including condensates.

However, the country still failed to consistently meet its crude oil production quota approved by the Organization of the Petroleum Exporting Countries (OPEC).

According to the NUPRC, average daily crude oil production stood at about 1.4 million barrels per day in April, while total production including condensates hovered around 1.6 million barrels per day.

The Federal Government has continued to target crude oil production of two million barrels per day in order to improve revenue generation, boost foreign exchange earnings and support implementation of the 2026 budget.

Energy experts believe that increased output from the Dangote Refinery could help stabilise fuel supply, reduce import dependence and position Nigeria as a major exporter of refined petroleum products in Africa.

Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector

The Central Bank of Nigeria (CBN) has raised fresh concerns over growing risks in the country’s non-interest banking sector, warning that weak governance, regulatory non-compliance, and emerging technology risks could undermine financial stability and erode public confidence if not urgently addressed.

The apex bank said the rapid expansion and increasing complexity of Non-Interest Financial Institutions (NIFIs) have exposed the sector to operational vulnerabilities, governance weaknesses, and heightened exposure to digital and fintech-related risks.

The warning was issued during the second Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) of Non-Interest Financial Institutions in Abuja.

Represented by the Director of the Financial Policy and Regulation Department, Dr. Rita Ijeoma Sike, the Deputy Governor in charge of Financial System Stability, Mr. Philip Ikeazor, said the risks confronting the sector require stronger oversight, improved compliance, and more effective governance frameworks.

He warned that failure to properly manage these risks could damage the credibility of Nigeria’s growing Islamic finance and non-interest banking system, reduce investor confidence, and weaken the sector’s contribution to financial inclusion.

According to him, the establishment of FRACE and mandatory Advisory Committees of Experts across all non-interest financial institutions was designed to strengthen Shariah governance, ensure regulatory alignment, and promote consistency across the industry.

“The objective is to institutionalise a robust Shariah governance system, provide structured dialogue, and enhance collaboration between regulators and market operators,” Ikeazor said.

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He added that continuous engagement between FRACE and ACE members is essential to ensure institutions fully understand regulatory expectations and implement them effectively across their operations.

The CBN stressed that non-interest banking has become an important part of Nigeria’s financial ecosystem, supporting financial inclusion, funding for MSMEs, real sector development, and ethical investment practices.

However, the bank warned that increasing product sophistication, expansion of service channels, and the rise of Islamic fintech innovations have introduced new risks that must be carefully managed.

These risks, according to the CBN, include weak internal controls, gaps in governance structures, inconsistent Shariah compliance monitoring, and cybersecurity vulnerabilities associated with digital financial services.

In his remarks, the Deputy Chairman of FRACE, Prof. Bashir Aliyu Umar, said the session was aimed at strengthening regulatory coordination and improving governance standards across the non-interest finance industry.

He commended the CBN for reviving the interactive forum, which was first introduced in 2014, noting that it remains a critical platform for dialogue between regulators and industry experts.

Earlier, Dr. Sike reaffirmed the apex bank’s commitment to building a credible, resilient, and well-regulated non-interest financial system capable of supporting sustainable economic growth.

She noted that the increasing diversity of institutions and financial products in the sector makes continuous regulatory engagement and expert advisory input more important than ever.

Technical sessions at the meeting focused on Shariah non-compliance risks, the implications for financial institutions, and the growing role of Islamic fintech in Nigeria’s financial inclusion drive.

Participants also discussed key industry challenges, including capacity gaps, independence of advisory committees, risk management practices, and the need for stronger governance structures to support innovation.

In his closing remarks, Prof. Abdul-Razzaq Alaro urged stakeholders to translate discussions into actionable reforms, stressing that the effectiveness of the session would be measured by improvements in governance and compliance within the sector.

The FRACE framework serves as a bridge between conventional financial regulation and Islamic finance principles, while ACEs provide internal Shariah oversight within individual institutions to ensure compliance with non-interest banking standards.

The CBN reiterated that it will continue to strengthen regulatory supervision, enhance risk monitoring systems, and support the development of a stable and trustworthy non-interest financial services sector in Nigeria.

CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector