News
FG May Slash Import Tariff on Cars
Reprieve appears underway for car dealers and buyers following plans by the Federal Government to review its import tariff on vehicles, according to Punch newspapers
This is expected to bring down the cost of new vehicles and increase the tempo of business in the nation’s automotive sector.
According to Punch, sources at the Federal Ministry of Industry, Trade and Investment gave the indication on Sunday that the current 70 per cent tariff on imported cars could get a downward review as a way to force down the prices of vehicles.
Although the National Automotive Design and Development Council, an agency under the ministry, said on Friday that 14 out of the 25 registered automakers had started assembling vehicles in the country, Nigerians have yet to enjoy the expected benefits of the new policy as the prices of vehicles are still high.
Even car dealers have had to adopt different strategies to encourage buyers and boost sales.
The sources, however, said the planned review, which is in tandem with the change mantra of the Muhammadu Buhari-led administration, should not be interpreted as an outright cancellation of the auto policy, which was announced in September 2013.
“It is likely to come in the form of a review of the import tariff on vehicles so as make it easy for people to buy new cars. The decision on the entire auto policy is expected to be part of the economic policy of the government, which will be unveiled as soon as the new ministers settle down,” one of the sources said.
Car prices were increased last year by about 60 per cent shortly after the import tariff went up from 22 per cent to 70 per cent, a situation, which made it difficult for many to buy new cars, just as fleet buyers such as corporate firms have had to cut down on the number of vehicles purchased.
The imposition of the new import tariff, which also affects imported used vehicles, according to the government, is to encourage local assembling/production of vehicles, with the attendant benefits of creating more jobs and boosting the nation’s economy.
A zero per cent was announced as tariff on imported vehicle components (Completely Knocked Down units) and auto assemblers are also allowed to bring in fully built vehicles at very low import tariff.
But some stakeholders, including major dealers such as Toyota Nigeria Limited, had complained about the timing of the policy and the seeming poor state of the needed infrastructural facilities for the sustenance of local assembly plants.
Mr. Oseme Oigiagbe, chairman of the automotive group, Lagos Chamber of Commerce and Industry, confirmed that the group had written to the Presidency and suggested a number of proposals on the implementation of the auto policy, and recently participated in some meeting sessions called by relevant government agencies/officials on the issue.
In an interview with our correspondent, he specifically called attention to the issue of unstable power supply and the commencement date for the new import tariff as contentious issues that needed to be urgently reviewed.
An auto expert and consultant, Dr. Oscar Odiboh, said the review of the tariff was expected, arguing that it was hurriedly put in place by the last regime and should, therefore, be suspended.
“The high tariff (on imported vehicles) should make itself necessary; it should not be forced down on the people. It should be suspended and introduced in phases – one to a five-year period,” he said.
Odiboh, who is the Managing Director, Newsletters Nigeria Limited, however, said the auto policy was a necessity for the development of the nation’s industry and the good of the economy.
“The project will take Nigeria from a lower stage to the next level and sit us among top economies of the world,” he stated.
But he warned that unless the implementation of the policy was made systemic and allowed to follow due process, it could derail the project.
He said, “Since this government says it has come to change things, it must change the policy. It is not a yam and beans policy. You must give people time.
“It requires certain basic things to be put in place. Power is necessary. There are other infrastructural facilities that will make the system run efficiently. Those things must be in place before enforcing the import tariff.”
Odiboh alleged that some firms had obtained the auto assembly plant licences to enable them to bring in fully built vehicles at low tariff and labelling those vehicles as being locally assembled.
But the Stallion Auto Group, currently assembling Nissan, Hyundai and Ashok Leyland brands of vehicles, and Dana Motors doing the Kia vehicles locally are optimistic that any review of the auto policy will not in any way affect their plants and business operations in Nigeria.
For instance, Mr. Parvir Sighn, managing director, Stallion NMN Limited, said, “As far as the group is concerned, we have no doubt that the government will sustain the policy. Anywhere in the world, the automobile industry is a high contributor to the Gross Domestic Product. It is also a significant employer of labour. The state of the auto development of a nation is a reflection of the development of that country.
“The policy will be sustained. There is no shortcut to it. You need a robust industry to support the high demand for vehicles in the country. The demand is there.”
Mr. Olawale Jimoh, spokesperson for Kia Motors Nigeria, said the company had in conjunction with its technical partners, Kia Motor Corporation, invested billions of naira in the local assembly plant and had in the process created jobs for Nigerians.
The government said the response of the automakers to the auto policy, particularly the call for the establishment of assembly plants in Nigeria, had been overwhelming.
Indeed, the NADDC said on Friday that the “response to the policy so far has exceeded our expectations.”
This must have prompted the Director-General of the NADDC, Mr. Aminu Jalal, to announce the suspension of licence issuance to new auto assembly plants.
He said the decision was taken to enable the council to set up some test centres that would “ensure that imported vehicles and components meet international safety and environmental standards.”
But the LCCI said the 70 per cent tariff on imported cars would bring about a higher transport cost.
The President, LCCI, Alhaji Remi Bello, said in a statement, “Vehicle ownership will be put further beyond the reach of the Nigerian middle class, especially in the face of poor credit access and high lending rates in the economy.”
He called for the development of ancillary industries for the production of batteries, glass, radiators, tyres and other vehicle components as well as affordable finance for the investors.
The LCCI president stated that the auto industry should be predicated on strong engineering infrastructure, including the production of flat sheets, foundries and fabrication of components needed in vehicle production.
When contacted, the Special Adviser to the President on Media, Mr. Femi Adesina, said he had no information on the auto policy, while the Special Assistant on Media to Vice President Yemi Osinbajo, Mr. Laolu Akande, promised to get back to our correspondent on the matter but never did up till the time of filing this report.
Patience Okala, the National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office has urged African countries to stop exporting raw materials and instead focus on adding value to its natural resources if it is to fully harness the opportunities offered by the African Continental Free Trade Area.
She stated this on Thursday at the Streamsowers & Köhn 20th Anniversary Business Forum, where she stressed that value addition and beneficiation are essential to Africa’s industrialisation and long-term economic growth.
According to a statement issued on Friday by the Nigeria AfCFTA Coordination Office, she said the AfCFTA goes beyond the elimination of tariffs, serving as a framework for industrialisation, value addition, and job creation across the continent.
“AfCFTA is not only about tariffs; it is also about value addition. Africa has to stop exporting raw materials. We need to add value and ensure that beneficiation is done on the continent,” she said.
Okala also said Africa’s economic transformation would depend on the effective implementation of the AfCFTA rather than on the signing of trade agreements alone.
“We have moved beyond negotiations. The success of AfCFTA will be measured by the extent to which businesses can access new markets, trade seamlessly across borders, and benefit from the opportunities created by the agreement,” she said.
She noted that Nigeria had intensified efforts to implement the agreement under the leadership of the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, including the development of simplified AfCFTA guides in six languages to help businesses understand and take advantage of opportunities under the trade pact.
Okala called for stronger collaboration among governments, regulators, and the private sector to eliminate barriers to trade and investment and build a truly integrated African market.
“As we move from policy to implementation, our collective responsibility is to ensure that the opportunities created by AfCFTA become practical realities for businesses, particularly MSMEs, women-owned enterprises, and young entrepreneurs across the continent,” she said.
Cisco is exploring artificial intelligence (AI)-powered solutions to support smallholder farmers in Nigeria, as part of efforts to expand digital inclusion and technology adoption.
The initiative focuses on improving agricultural productivity through accessible, data-driven tools.
The move aligns with growing collaboration between Nigeria and the United States under the Commercial and Investment Partnership, which prioritises the digital economy, agriculture and infrastructure.
Speaking at the 2026 World Business Chicago, Brian Tippens, chief social impact and inclusion Officer at Cisco, said the company is assessing practical AI applications to help farmers combine local knowledge with data insights.
He said Cisco is exploring tools such as AI-enabled WhatsApp communities, geospatial mapping and weather intelligence to support day-to-day farming decisions.
The approach reflects a shift towards low-cost, mobile-first solutions suited to rural environments.
Tippens added that the Cisco Foundation is investing in early-stage startups developing technologies for local agricultural challenges.
Industry analysts note that AI adoption in emerging markets depends on locally relevant solutions, rather than large-scale enterprise deployments alone.
Beyond agriculture, Cisco plans to expand digital skills development in Nigeria through programmes such as the Cisco Networking Academy’s One Million Learners initiative.
Tippens said the programme also supports partnerships with organisations working with persons with disabilities, including those developing tools for people with visual impairments.
He added that Cisco’s social impact strategy aims to improve access to technology and promote inclusion, including in conflict-affected regions such as Borno State.
Cisco’s initiatives form part of broader efforts to link digital skills, connectivity and AI adoption to economic development in Nigeria.
Federal Government has launched a nationwide Artificial Intelligence (AI) capacity-building programme for teachers in Federal Unity Colleges, with about 11,700 educators set to acquire digital skills aimed at improving classroom instruction and preparing students for a technology-driven future.
The initiative advanced with the signing of the Terms of Reference (ToR) between the Federal Ministry of Education and ICEDT Consult Limited, paving the way for the nationwide implementation of the AI Teacher Capacity Development Programme.
The programme, to be implemented through the ministry’s Education Support Services Department, is part of the Federal Government’s efforts to modernise Nigeria’s education sector, strengthen teacher professionalism and equip students with skills required in the digital economy under President Bola Tinubu’s Renewed Hope Agenda.
Speaking during the signing ceremony in Abuja, the Director of the Education Support Services Department, Gabriel Amudipe, described the initiative as a strategic investment in Nigeria’s teaching workforce and the future of education.
He said the nationwide rollout followed the successful completion of a pilot phase conducted in selected Federal Unity Colleges.
According to him, the implementation model developed by ICEDT Consult Limited will ensure effective coordination and quality delivery of the programme across the country’s six geopolitical zones.
Amudipe urged officials responsible for monitoring the project to ensure strict compliance with the implementation guidelines and maintain the standards achieved during the pilot phase.
“The ministry remains committed to supporting innovative initiatives that strengthen teacher professionalism, improve learning outcomes and promote the responsible integration of emerging technologies into education,” he said.
Earlier, the Deputy Director of the Education Support Services Department, Oladele Fapohunda, described the programme as a strategic intervention designed to deepen digital innovation across Federal Unity Colleges.
He stressed that collaboration among all stakeholders would be essential to achieving the objectives of the initiative nationwide.
Also speaking, the Head of Strategic Partnerships and Learning Scientist at ICEDT Consult Limited, Dr Abdulrahman Orosanya, said the Federal Government approved the national rollout after the successful pilot implementation in six Federal Unity Colleges representing Nigeria’s six geopolitical zones.
According to Orosanya, the pilot demonstrated the potential of Artificial Intelligence to improve lesson planning, classroom delivery, assessment methods and teachers’ productivity.
He said the nationwide implementation would strengthen teachers’ digital competencies, improve instructional delivery and support the government’s vision of building a technology-driven education system capable of producing globally competitive graduates equipped with 21st-century skills.
The ceremony ended with the formal signing of the Terms of Reference by officials of the Federal Ministry of Education and ICEDT Consult Limited, signalling the commencement of preparations for full implementation across all Federal Unity Colleges.
The ministry said the programme would directly train about 11,700 teachers, while thousands of students across the country’s Federal Unity Colleges are expected to benefit through improved classroom instruction, increased digital innovation and the responsible application of Artificial Intelligence in teaching and learning.
It reaffirmed its commitment to working with relevant stakeholders to modernise Nigeria’s education system, improve teacher quality and deliver inclusive, equitable and future-ready education nationwide.
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