THE IMPACT OF TARIFFS ON RICE AND AUTOMOBILE IMPORTS ON NIGERIAN ECONOMIC DEVELOPMENT (2015-2024)

Abstract

This study investigates the effect of tariffs on Nigerian economic development,
focusing on the importation of rice and automobiles. The study assesses how tariff policies have
influenced domestic production. The study adopted the ex-post facto design as the methodology.
The data collected was analysed using linear regression and Ordinary Least Squares (OLS). The
findings reveal that while tariffs have led to marginal increases in local production, especially in
rice farming, they have also resulted in higher consumer prices, smuggling, and inadequate growth
in local automobile assembly. The study concludes by recommending that the government should
strengthen domestic production incentives through subsidies, training, and access to credit, rather
than relying primarily on restrictive trade policies. Also, the Nigerian government should invest
in vocational training and R&D in auto technology to improve local content.