The National Automotive Design and Development Council (NADDC) has called for stronger legal and institutional backing to accelerate the development of Nigeria’s automotive industry, as it seeks to replace the existing 2014 Act with a proposed National Automotive Industry Bill, 2026.
The Director General and Chief Executive Officer of the Council, Otunba Oluwemimo Joseph Osanipin, made this known during a Public Sector Stakeholder Consultative Meeting on the draft bill.
Osanipin said the proposed legislation was designed to transform the country’s automotive industry from fragmented vehicle assembly operations into an integrated and sustainable industrial value chain.
He explained that the Council’s priorities included increasing local content in vehicle production, expanding component manufacturing, promoting vehicle recycling, advancing electric mobility and taking advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
According to him, achieving sustainable growth in the industry requires a strong legal framework capable of addressing policy uncertainty, weak enforcement and legislative gaps that have discouraged long-term investments.
He noted that although the National Automotive Design and Development Council Act of 2014 provided an initial regulatory foundation, developments in global manufacturing, green technology and regional trade have made an updated legal framework necessary.
The proposed National Automotive Industry Bill, 2026 seeks to repeal the existing 2014 Act and establish the National Automotive Development Commission, with expanded regulatory, supervisory and enforcement responsibilities.
Osanipin said the legislation would also provide legal backing for the incentives and implementation structures contained in the Nigerian Automotive Industry Development Plan (NAIDP), giving investors greater certainty about government policies in the sector.
He added that the proposed law would strengthen cooperation among government agencies in areas such as quality control, anti-smuggling operations, environmental compliance and vehicle safety standards.
The Council also expects the legislation to accelerate local production by encouraging the use of locally sourced raw materials, expanding component manufacturing and creating employment opportunities for Nigerian youths.
Osanipin disclosed that the NADDC had earlier held consultations with private sector stakeholders in Lagos to gather contributions towards the proposed legislation.
He said the engagement involved vehicle assemblers, component manufacturers, plant managers and industry associations, including the Nigerian Automotive Manufacturers Association (NAMA), Motorcycle Manufacturers Association (MOMAN), Automotive Local Components Manufacturers Association (ALCMAN) and the Manufacturers Association of Nigeria (MAN).
According to him, the recommendations and concerns raised during the consultations had been compiled and incorporated into the working draft of the bill.
He stressed that private sector contributions alone would not be sufficient to produce an effective national automotive policy, noting that the industry’s development also involves fiscal policy, international trade, customs administration, environmental protection, financial regulation and legal governance.
Osanipin urged participants to examine the provisions of the draft bill against their respective institutional mandates and recommend adjustments that would promote effective collaboration across government agencies.
He added that the feedback from the meeting, alongside a legal presentation by Mr Gboyega Oyewale, SAN, would guide the finalisation of the proposed legislation before its transmission to the National Assembly.
The NADDC chief executive expressed appreciation to participating government agencies, development partners and the National Assembly leadership for their contributions, reiterating the Council’s commitment to building a competitive and sustainable automotive industry in Nigeria.
