SAN urges overhaul of automotive laws

Usman Sule

A Senior Advocate of Nigeria, Usman Sule, has called for legal and policy reforms to reposition Nigeria’s automotive industry.
  
He warned that the sector’s vast economic potential will remain untapped without a stronger legislative and institutional framework.
  
Sule made the call in Asaba while making a presentation titled, “Strengthening the Policy and Legal Framework for the Development of Nigeria’s Automotive Sector” to members of the House Committee on Industry of the National Assembly of Nigeria.
  
He described the automotive sector as a critical but underdeveloped component of Nigeria’s economy, with significant capacity to drive job creation, industrialisation and technology transfer if properly regulated and supported.
  
“Our automotive sector holds immense potential for job creation, technology transfer and economic diversification, but this potential can only be unlocked when our policies are anchored in law, our institutions are strengthened and enforcement mechanisms are transparent,” he said.
  
Central to his recommendation was the urgent reform of the National Automotive Design and Development Council Act, which established the National Automotive Design and Development Council.
  
He argued that the existing legal framework contains gaps that must be addressed to reflect current realities in manufacturing, innovation and global trade.
  
Sule examined key provisions of the Act, including the Council’s mandate to promote local content, regulate component manufacturing, ensure vehicle standards and forecast industry trends. 
  
However, he noted that sections dealing with leadership appointments, staffing and disciplinary procedures require urgent review.
  
He advocated a merit-based and sector-driven leadership structure, recommending that the Director-General of the Council should possess at least 10 years’ post-qualification experience in engineering, automotive manufacturing, industrial policy or related fields.
  
The senior lawyer also called for stronger ethical safeguards within the agency, including the introduction of a mandatory code of conduct and stricter conflict-of-interest regulations to enhance transparency and boost investor confidence.
  
To stimulate growth, Sule proposed the establishment of a National Automotive Incentive Scheme to provide tax reliefs, import duty waivers and targeted incentives for investments, particularly in electric and hybrid vehicle production.
  
He stressed the need to integrate environmental and technological standards into vehicle approval processes, aligning Nigeria’s automotive policies with global sustainability and innovation trends.
  
He recommended strengthening research and data-taking systems in the sector, fostering partnerships between government, universities and industry players, upgrading automotive testing centres into regional technology hubs, and introducing digital standards for smart vehicles and cybersecurity.
  
Sule also urged the inclusion of mandatory technology transfer clauses in joint venture agreements and the expansion of technical training programmes to build local capacity in automotive design and manufacturing.
  
On regional integration, he called for stronger collaboration within ECOWAS and the African Continental Free Trade Area framework to improve competitiveness and market access for Nigerian-made vehicles.
  
While highlighting the role of governance, the senior lawyer emphasised the importance of accountability mechanisms, including whistleblower protection and structured dispute resolution processes, to strengthen institutional credibility.
  
He therefore reminded lawmakers of their constitutional responsibility to drive economic transformation through legislation, noting that Section 4(2) of the 1999 Constitution empowers the National Assembly to enact laws for good governance.
  
He urged closer collaboration between the legislature and executive in implementing reforms, noted that Nigeria’s automotive future depends on decisive legislative action and institutional strengthening, stressing that without urgent reforms, the country risks remaining dependent on imports rather than developing a globally competitive automotive industry.

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