NADDC seeks stakeholders’ input to strengthen automotive

The National Automotive Design and Development Council (NADDC) has called on stakeholders in Nigeria’s automotive industry to contribute actively to the review and refinement of the Draft National Automotive Industry Bill, 2026.

The Director-General/Chief Executive Officer of NADDC, Otunba Oluwemimo Joseph Osanipin, made the call in Lagos at a stakeholders’ engagement on the proposed legislation, describing the Bill as a critical step towards creating a self-sustaining, technologically advanced and globally competitive automotive industry.

Osanipin said the engagement was important because the proposed legislation was intended to address longstanding challenges confronting the industry, including policy inconsistency, legislative gaps and outdated legal frameworks.

According to him, while the National Automotive Design and Development Council Act of 2014 provided an important foundation for the sector, changing global manufacturing trends, the transition to green mobility and regional trade integration under the African Continental Free Trade Area (AfCFTA) had made it necessary to strengthen Nigeria’s automotive legal framework.

He said the Draft National Automotive Industry Bill, 2026, proposed the transformation of the NADDC into the National Automotive Design & Development Commission, with stronger statutory regulatory and enforcement powers.

Osanipin explained that the proposed legislation would also provide legal backing for incentives, protection measures and implementation structures under the Nigerian Automotive Industry Development Plan (NAIDP).

He said the Bill was designed to create a predictable and investment-friendly environment capable of attracting long-term capital from original equipment manufacturers, component suppliers and financiers.

The NADDC boss added that the proposed law would accelerate local value addition, supplier development and sustainable job creation, particularly for Nigeria’s growing youth population.

He said the ultimate objective of the reform was to move Nigeria’s automotive industry beyond its existing assembly capacity and establish a complete industrial value chain driven by local content, component manufacturing, vehicle electrification and regional market integration.

“Legislation designed for the private sector must be written with the private sector,” Osanipin said, urging industry players to scrutinise the proposed provisions and make practical recommendations.

He stressed that the draft legislation was not a finished document, but a collaborative template open to contributions from manufacturers, assemblers, component producers and industry associations.

“We want to know: Where do these provisions support your growth? Where do they create bottlenecks? How can we refine this framework to position Nigeria as the undisputed automotive manufacturing hub of West Africa?” he asked.

Osanipin urged participants to engage in open, transparent and constructive discussions during the review of the Bill, noting that their recommendations would influence the final document to be transmitted to the National Assembly.

He also commended stakeholders who had already submitted written contributions to the proposed legislation and expressed confidence that continued collaboration between government and industry would help establish a stronger foundation for automotive manufacturing in Nigeria.

NAMA Calls for Substantial Amendments

Also speaking at the stakeholders’ forum, the Nigerian Automotive Manufacturers Association (NAMA) called for substantial amendments to the proposed National Automotive Industry Bill, 2026, warning that the legislation, in its current form, could regulate the sector without providing the conditions needed to drive genuine industrialisation.

The association said it supported the enactment of a strong National Automotive Industry Act but stressed that the Bill must go beyond licensing, standards, inspection, penalties, testing and consumer protection.

NAMA said the central question the legislation must answer was what would make it commercially rational for an investor to manufacture vehicles and components in Nigeria rather than simply import finished vehicles.

It said the automotive industry should be treated as an anchor industry because of its linkages with steel, aluminium, plastics, rubber, glass, batteries, electronics, chemicals, engineering, logistics, finance, ICT, technical education and research and development.

The association therefore called for the proposed Act to establish a predictable industrial compact between government and investors, under which government would provide stable policies, incentives, market support and investment protection, while manufacturers would commit to investment, production, employment, local content, supplier development, technology transfer and research.

“No industrial incentive without industrial performance and no industrial performance obligation without predictable Government support,” NAMA said.

One of the association’s major recommendations was the introduction of Automotive Investment and Localisation Agreements, which would clearly define investors’ commitments and the incentives and support to be provided by government.

NAMA also called for statutory protection for approved automotive investments, arguing that investors who commit substantial capital based on approved policies and agreements should have reasonable certainty that the rules would not be changed arbitrarily during their investment cycle.

On tariffs, the association urged the government to establish a predictable Automotive Tariff and Industrial Protection Framework covering fully built vehicles, semi-knocked down (SKD) kits, completely knocked down (CKD) kits and locally manufactured components.

It warned against a situation where manufacturers undertaking CKD production and localisation are placed at a commercial disadvantage to importers of fully built vehicles.

NAMA also called for safeguards against sudden import surges that could seriously threaten domestic production.

On local content, the association said localisation must be progressive and competitive, rather than imposing requirements that Nigerian component manufacturers are not yet technically or financially equipped to meet.

It proposed a Component Localisation and Deletion Programme, backed by affordable long-term finance, tooling support, technical assistance, quality certification, testing facilities, access to original equipment manufacturer (OEM) technology and predictable demand from vehicle assemblers.

NAMA also identified the proposed Automotive Development Fund as one of the most important provisions of the Bill, but urged that the fund be properly governed and ring-fenced.

It recommended separate funding windows for vehicle manufacturing, component production, tooling and equipment, working capital, supply-chain finance, research and development, skills development, infrastructure, consumer vehicle finance and clean mobility technologies.

The manufacturers stressed that automotive production required long-term financing because of its capital-intensive nature and lengthy investment gestation period.

The association further urged government to use public procurement as a tool for developing the local automotive industry.

It commended steps towards implementing the Nigeria First policy in the automotive sector and called for the proposed Act to strengthen the policy by requiring government ministries, departments, agencies and government-owned enterprises to procure locally manufactured or assembled vehicles where they meet prescribed technical standards.

According to NAMA, government procurement should be treated as a strategic mechanism for creating the production volumes needed to make local manufacturing competitive.

The association also advocated a practical vehicle finance and credit guarantee framework to enable consumers and institutions to purchase locally produced vehicles.

To maximise limited resources, NAMA proposed the creation of National Automotive Programme Vehicles, under which Nigeria would concentrate production, supplier development and localisation around selected high-volume vehicle categories.

The proposed categories include affordable Nigerian entry-level vehicles, pick-ups, minibuses, buses, light and medium commercial vehicles, as well as selected CNG and electric vehicle platforms.

NAMA said concentrating production around selected platforms would enable Nigeria to build deeper component manufacturing capacity instead of spreading limited industrial resources across too many vehicle categories.

The association also called for a long-term Automotive Industrialisation Strategy with measurable targets covering vehicle production, CKD transition, local value addition, component manufacturing, investment, employment, technology transfer, research and development, exports and foreign-exchange savings.

It said manufacturers benefiting from significant government incentives should be required to report measurable performance against agreed industrial targets.

NAMA equally demanded protection for existing investments in the sector, noting that current assemblers had invested in land, plants, equipment, skilled manpower, technical partnerships, inventory, after-sales infrastructure and local supplier relationships under previous government policies.

It therefore called for all valid licences, approvals, incentives, concessions and agreements to remain in force for their approved duration, subject to their terms and applicable laws.

“This is not a request for permanent protection; it is a request for predictability and fairness,” the association said.

On regulation, NAMA called for a transparent and proportionate regime, with clear, published and time-bound licensing requirements.

It also urged regulators to differentiate between major CKD manufacturers, SKD assemblers, component manufacturers, distributors and small after-sales enterprises, while ensuring that penalties are proportionate to the nature and seriousness of offences.

The association further demanded clear avenues of appeal for automotive businesses affected by major regulatory decisions.

NAMA said the ultimate objective of the legislation should be to move Nigeria from SKD assembly to CKD manufacturing, from vehicle assembly to component integration, and from import dependence to local value creation.

It also expressed the ambition of transforming Nigeria from a protected domestic automotive market into a competitive African automotive production base.

MOMAN Seeks Tariff Incentives for Motorcycle, Tricycle Assemblers

The Motorcycle Manufacturers Association of Nigeria (MOMAN) was the final industry group to speak at the engagement, expressing support for the overall objectives of the National Automotive Industry Bill, 2026.

The association said translating the objectives of the proposed legislation into sustainable industrial development would require clear incentives for genuine manufacturing and assembly investments, predictable regulation, workable local-content pathways and protection for consumers and responsible investors.

In a submission signed by its Executive Director/CEO, Rev. Lambert Ekewuba, MOMAN recommended a three-phased deletion programme for motorcycles and tricycles as part of measures to deepen local manufacturing in the subsector.

The association also called for the maintenance of a substantial and commercially meaningful tariff gap between locally produced parts and imported components.

According to MOMAN, such a tariff structure would help make local production commercially viable while encouraging manufacturers to increase local value addition.

The association further recommended zero per cent import duty on CKD kits for motorcycle and tricycle assembly plants that have made significant investments in the industry and are implementing backward integration programmes.

MOMAN said the proposed incentives would encourage existing investors to deepen their manufacturing operations and support the gradual development of local component production.

The association stressed that predictable incentives and a clear policy framework were necessary to encourage further investment in Nigeria’s motorcycle and tricycle manufacturing industry.