FG Restricts Imports of Motorcycle, Tricycle Parts to Boost Local Production, Jobs
- Nigeria's government aims to boost local manufacturing of motorcycle parts through an import-deletion programme
- The initiative is expected to create jobs and reduce reliance on foreign exchange within the economy
- Industry experts stress the need for policy consistency to ensure successful domestic production growth
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has moved to curb the importation of selected motorcycle and tricycle components in a fresh push to strengthen local manufacturing, create jobs and ease pressure on foreign exchange.
The initiative is being driven by the National Automotive Design and Development Council, which has commenced the implementation of an import-deletion programme targeting parts used in “Okada” motorcycles and “Keke” tricycles.
Source: Getty Images
Import deletion is a trade strategy that identifies foreign-made components with viable local alternatives and removes tariff incentives or restricts their importation.
The goal is to make domestic production more attractive while deepening Nigeria’s industrial base, the Daily Sun reported.
Why is the government tightening the import tariff?
Speaking at a stakeholders’ sensitisation meeting in Lagos, on Monday, February 23, 2025, the Director-General of NADDC, Oluwemimo Osanipin, said the council is mandated to review automotive parts currently imported into Nigeria and recommend those that can be competitively produced locally.
Under the policy, selected components will either be removed from the import list or stripped of tariff waivers, making them less attractive to bring into the country.
According to Osanipin, the economic gains could be significant. Localising production would stimulate job creation across the value chain, encourage value addition and reduce the country’s reliance on scarce foreign exchange.
He noted that producing items such as tyres and batteries locally would also boost related industries, as raw materials would be sourced within Nigeria. This, he said, would expand local content, improve technical expertise and enhance quality control in line with national standards.
Beyond economics, the policy is also positioned as a pathway to stronger industrial capacity.
Osanipin explained that domestic production would allow better customisation of motorcycles and tricycles to suit Nigerian terrain and climate.
Starting small, building capacity
According to a report by The Nation, the council is beginning with motorcycle and tricycle parts due to their relatively simple technology and lower capital requirements compared to larger vehicle segments.
Osanipin said the government is not aiming for total localisation overnight. Instead, it plans to start with components that can be produced competitively, including cellophane seat covers, plastic parts, foam materials and fasteners.
He disclosed that some Nigerian firms already manufacture specialised plastic components for motorcycles and tricycles, while another company has the capacity to produce up to 30,000 lead-acid batteries monthly.
Manufacturers flag policy risks
Industry players, however, say the success of the programme will depend heavily on policy consistency.
Lambert Ekewuba, Executive Director of the Motorcycle Manufacturers Association of Nigeria, pointed out that Nigeria has over five million motorcycles and about three million tricycles in circulation, yet local production of parts remains limited.
He attributed past setbacks to inconsistent government policies, including bans on motorcycle operations in certain states, which reduced demand and discouraged investment in local production.
Ekewuba also called for harmonised tariffs on raw materials and finished components. Manufacturers, he argued, would only scale up local production if importing raw materials is more cost-effective than bringing in fully assembled parts.
Similarly, Bawo Omagbitse, Chairman of the Nigerian Automotive Manufacturers Association, stressed that sustained protection and long-term policy stability are essential to attract serious investment into the sector.
Source: Getty Images
A test of Nigeria’s industrial resolve
The import-deletion drive signals a renewed attempt to shift Nigeria from an import-dependent market to a production-driven economy.
Whether it delivers the promised jobs and industrial growth will likely depend on how consistently the policy is implemented and how effectively government and industry align their interests in the months ahead.
FG grants N3 billion waiver to MSMEs
Legit.ng earlier reported that Nigeria’s small business landscape is experiencing a dramatic transformation following the Federal Government’s ₦3 billion waiver on business name registration fees for micro, small and medium enterprises (MSMEs).
Since the initiative was introduced, daily filings at the Corporate Affairs Commission have surged from a few hundred to nearly 10,000 applications, marking an estimated 2,000 per cent increase.
What was once a slow administrative process has evolved into a digital-driven mass formalisation effort, reshaping the country’s enterprise ecosystem.
Source: Legit.ng
