While annual demand for vehicles in Africa’s most populous country is about 720,000 vehicles, only 14,000 are produced locally, Vice President Yemi Osinbajo said in statement on Monday.

“At current rate of production, we will not meet the serious national needs, which mean higher prices of vehicles and greater strain on other sectors of the economy that depend on transportation,” Osinbajo said.

The government is reducing levies on motor vehicles for transportation to cut commuting costs due to high inflation.

“With subsidy removal and the increase in fuel price and the pass-through to food prices, transportation costs have to be reduced,” he said.