Nigeria's Auto Industry and Manufacturers Warn of Policy and Credit Risks

The Nigerian Automotive Manufacturers Association (NAMA) has urged the federal government to pair its 2026 fiscal policy measures with a robust industrial support framework. In a position paper, NAMA warned that tariff liberalisation without safeguards could erode the protection margin for local vehicle assembly, noting a 67% surge in vehicle imports from 35,262 units in Q1 2025 to 58,870 units in Q1 2026. The association called for restoring a larger duty differential, mandatory consultation with the National Automotive Design and Development Council, and the passage of the Nigeria Automotive Industry Development Plan, alongside incentives such as production‑linked subsidies and a supplier development fund.

Separately, the Manufacturers Association of Nigeria (MAN) cautioned that a sharp contraction in commercial bank credit to the manufacturing sector – a decline of N1.92 trillion, or 22.5%, from December 2024 to December 2025 – threatens diversification and job‑creation efforts. MAN highlighted persistently high lending rates (average prime 24.4%, maximum 33.8%) that make capital investment unviable, risking lower capacity utilisation, stalled technology upgrades, and keeping the sector’s contribution to GDP at around 9.6%. Both bodies stress that coordinated policy action is needed to sustain Nigeria’s industrial growth.