The Association of Automobile, Boatyards, Transport Equipment and Allied Employers of Nigeria (AABTEAEN) says recent foreign exchange reforms are beginning to bring much-needed stability to Nigeria’s automotive industry, even as businesses continue to grapple with rising operational costs. The association made this known during its 46th Annual General Meeting held in Lagos, where stakeholders reviewed the state of the sector and broader economic pressures shaping operations in 2025.
According to the association’s president, Adekunle Jaiyesimi, the liberalisation of Nigeria’s foreign exchange market has been one of the most impactful policy shifts in recent years. He explained that while the reforms have significantly increased the cost of vehicles and equipment, they have also improved access to foreign currency through formal banking channels, reducing dependence on the parallel market.
Jaiyesimi noted that the previous FX system created uncertainty for businesses, with delayed transactions and strained relationships with international suppliers who were often unwilling to extend credit due to payment challenges. He added that although prices have now “almost quadrupled” across the sector, companies can at least plan better under the current system, where costs are more predictable even if higher.
He also pointed to gradual improvements in the ease of doing business, especially in customs processes, saying there is now more transparency compared to the past. He praised increased collaboration between regulators and industry stakeholders, particularly the National Automotive Design and Development Council, noting that its leadership appears more open to private-sector input in shaping policy decisions.
While acknowledging public concerns about import duties, Jaiyesimi clarified that effective tariff rates have remained largely stable at around 40 per cent. He urged the Federal Government to sustain ongoing reforms and ensure consistent policy implementation, stressing that stability remains key to restoring investor confidence and supporting long-term growth in the automotive sector.
source: punch