Mr Wilson made his comments in relation to the speed limit, which was introduced this week to the inner city centre by the Department for Regional Development (DRD), run by Mr Wilson’s DUP colleague Michelle McIlveen.
He said the “road safety anti-motor car Taliban” would “swell the coffers” of the DRD through fines to motorists but do nothing for road safety.
Mr Lyttle said Mr Wilson should retract his comments immediately.
“To compare anyone to the Taliban is not only a gross exaggeration but deeply offensive,” he said.
“A 20mph speed limit has been proven to reduce accidents, which can only be seen as a positive measure, and is one of a number of processes designed to reduce congestion and help create a transport infrastructure fit for a modern city.”