Effect of Import Substitution Industrialisation Policy on the Nigerian Automobile Assembly Industry

This research evaluates the effect of import substitution industrialisation (ISI) policies on the development and performance of the Nigerian automobile assembly industry. Nigeria has implemented various ISI-oriented policies including the National Automotive Industry Development Plan, which introduced tariff protections and local content requirements to stimulate domestic vehicle assembly. Despite these interventions, the Nigerian automobile sector continues to operate well below its potential capacity. The study adopts a secondary data research design, drawing on production statistics, import data, and policy documents from the National Automotive Design and Development Council, the Federal Ministry of Industry, and published industry reports covering 2018 to 2023. Content analysis and trend analysis are used as analytical tools. The theoretical framework draws on the infant industry protection argument and the structuralist school of development economics. The study analyses the performance of existing automobile assembly plants including Innoson Vehicle Manufacturing in Nnewi, Anambra State, and Stallion Motors, evaluating their output volumes, employment figures, and degree of local content integration over the study period. It also examines the role of import tariff regimes in protecting domestic assemblers from competition with used vehicle imports. Findings are expected to show that ISI policies have had limited success due to weak infrastructure, narrow domestic market purchasing power, and inconsistent policy implementation. Recommendations include more targeted industrial policy support, infrastructure investment, and consumer credit schemes to stimulate demand for locally assembled vehicles. Keywords: import substitution, automobile industry, industrial policy, Nigeria, local content