Home > Articles > Ban on Tokunbo Vehicles and its Benefits on the Nigerian Economy by Odumody Nnamdi Lionel

Ban on Tokunbo Vehicles and its Benefits on the Nigerian Economy by Odumody Nnamdi Lionel


Ever since the Ministry of Trade and Industry under Dr. Segun Aganga came up with the ban on tokubo vehicles, it has been received with mix feelings. The purpose of this policy is to promote the local consumption of Nigerian made automobiles. It is meant to discourage the importation of used vehicles of more than 4 years since manufacture and distribution.

The Nigerian Car dream started when Prof. Awojobi of the Mechanical Engineering Department of the Unniversity of Lagos (UNILAG) made the Autonov, a military vehicle. That dream was not supported by the government of the day, and the car still stands as a tourist exhibition in the college.

Another Nigerian, Dr. Ezekiel Izuogu would follow suit when he invented a car, which would also eventually suffer due to lack of political will from the Federal Government. Subsequent Nigerians have tried to come up with locally made vehicles, but didn’t achieve success.

Local Automobile Assemblers like Innoson and Peugeot Automobile Nigeria will be the major gainers since the Federal Government and Private Sector will have no option that to support them through the purchase of their products. Innoson made headlines as the world’s first black automobile manufacturer in an industry of giants like Daimler Chrysler, Toyota, General Motors, BMW amongst others, when she released her range of SUV’s, sedans, buses, pickup vehicles and waste disposal trucks. The major customer of Innoson Motors has been the Anambra State Government. It has spent billions of naira to purchase SUV’s for its use and distribution to Monarchs and security services, Waste Disposal Trucks for Anambra State’s Waste Management Company and buses for transportation. The Nigerian Army also use Innoson’s pickup vans in some it’s operations, especially in it’s onslaught against the Boko Haram terrorist group.

Innoson Vehicles advantage is that it is built to suit the Nigerian environment, especially with the rugged state of our roads. Through this initiative, jobs will be created and sales accumulated which will lead to revenue in form of taxes to the Federal Government.

The major impediment to the success of this is the erratic power supply in the country which is crippling industries via overhead costs, which have made it cheaper to buy imported vehicles due partly to the high cost of production of locally made vehicles. Also the steel industry, which is a prerequisite for the industrialisation of any nation, and comprises key raw materials for automotives production is practically dead, since the collapse of the multi-billion dollar Ajaokuta Steel Plant.

The Government should ensure that it promotes massive investments in the two highlighted areas, and give incentives like tax holidays, access to credit and investor protection to make sure that the Made In Nigeria car becomes a reality.

Odumody Nnamdi Lionel is a graduate of International Relations from Covenant University, Ota. He is an entrepreneur, consultant who is passionate about the economic development of Africa. You can connect with him on Facebook-Odumody Nnamdi Lionel, Twitter@Odumody Nnamdi or email, nalion2002@yahoo.com, 2348068802713

  1. Ken Ejiofor
    14/11/2013 at 14:57

    It is so disheartening knowing that the Government will not support such great innovators when we are clamouring for Nigerian technology. I pray that those concern will stubble across this inspiring talk.

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