NADDC seeks law to stabilise automotive sector, reverse trillions in imports

Oluwemimo Joseph Osanipin

The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, has called for the transformation of Nigeria’s automotive development policy into law.

The council warned that trillions of naira spent annually on vehicles and spare parts imports will persist unless the sector is given firm legislative backing.

Speaking in Abuja on Monday during a capacity-building workshop for the House of Representatives Press Corps, Osanipin said investors in the capital-intensive automotive industry would remain cautious without legal certainty guaranteeing policy continuity beyond administrative cycles.

The workshop, organised by NADDC in collaboration with the House Committee on Media and Public Affairs, focused on strengthening sectoral policy communication and legislative reporting on Nigeria’s automotive industry development.

Osanipin explained that while the Nigeria Automotive Industry Development Plan provides strategic direction, sustainable industrial growth requires statutory protection.

According to him, manufacturers considering large-scale investment in vehicle assembly and component production need assurance that fiscal incentives and regulatory frameworks will endure over the long term.

He disclosed that the council plans further engagement with lawmakers at the National Assembly to advance efforts aimed at strengthening the legal foundation of the automotive framework.

Describing the industry as one of the most capital-intensive globally, the NADDC boss said legislative backing would stabilise the regulatory environment, deepen local production and accelerate industrialisation.

Nigeria, he noted, currently spends trillions of naira annually on vehicle imports and spare parts, a trend he described as economically unsustainable.

He said the council’s localisation programme is targeting domestic production of selected automotive components to conserve foreign exchange and expand local value chains.

According to him, no country produces every component of a vehicle, adding that Nigeria has identified parts that can be competitively manufactured locally and is working with assemblers to scale up domestic capacity.

Osanipin also highlighted progress in local innovation, including the design and production of tricycles using locally sourced materials and expanding capacity in compressed natural gas (CNG) vehicle assembly.

He added that over 15,000 technicians have been trained nationwide to strengthen after-sales services and technical sustainability within the sector.

He further revealed that global manufacturers such as Toyota, Volkswagen and Ford have inspected Nigerian automotive facilities and expressed surprise at the level of infrastructure available in the country. Some production equipment, he said, ranks among the most sophisticated on the continent.

Linking automotive development to broader economic objectives, Osanipin said the sector supports industrial diversification, job creation, technology transfer and foreign exchange conservation, while positioning Nigeria to benefit more competitively under continental trade arrangements.

Chairman of the House Committee on Media and Public Affairs, Akintunde Rotimi, stressed the importance of specialised knowledge among legislative reporters, noting that informed media coverage is critical to translating industrial policy into public understanding and national development outcomes.

He said the training forms part of broader institutional reforms within the House of Representatives aimed at strengthening professionalism in legislative reporting and enhancing democratic accountability.

According to Rotimi, legislative work is completed only when policies and reforms are clearly understood by citizens, stressing that the press corps plays a pivotal role in interpreting legislative intent and oversight outcomes.

Also speaking, Chairman of the Nigeria Union of Journalists (NUJ), FCT Council, Grace Ike, urged reporters to deepen policy-focused coverage of the automotive sector, describing informed journalism as essential to attracting investment and promoting accountability.

She noted that effective communication ensures that legislative initiatives and policy measures supporting automotive development do not remain confined to official documents but instead stimulate public discourse and attract investment.

Ike said the training would enable reporters to improve coverage of legislative and regulatory initiatives, including policy frameworks guiding Nigerian assembly and emerging developments in electric vehicle adoption.

Chairman of the House of Representatives Press Corps, Gboyega Onadiran, called for stronger national commitment to local automotive production, warning that heavy reliance on imported vehicles continues to exert pressure on foreign exchange reserves and domestic value chains.

He described industrialisation as an economic necessity, arguing that patronage of locally assembled vehicles would stimulate manufacturing growth, conserve foreign exchange and create employment across technical and engineering fields.

Nigeria, he said, stands at an economic crossroads, and success in strategic sectors such as automotive manufacturing would significantly strengthen the country’s long-term prosperity.

Join Our Channels