By Lucy Ogalue, News Agency of Nigeria (NAN)
As the global automotive industry transactions from petrol-powered engines to electric vehicles (EVs), compressed natural gas (CNG) and cleaner mobility systems, Nigerian is under increasing pressure to adapt or risk falling further behind.
For decades, the country’s auto industry has been weighed down by policy reversals, heavy dependence on vehicle imports, weak local content development and skills gaps.
Once a leading assembly hub in Africa, hosting plants such as Peugeot Automobile Nigeria, Volkswagen of Nigeria and ANAMMCO, the sector gradually lost momentum amid the influx of used vehicles and poor regulatory enforcement.
Today, the National Automotive Design and Development Council (NADDC) says it is pursuing a reform agenda aimed at sustainability, consumer protection and long-term industrial growth.
At the heart of the reform drive is the proposed End-of-Life Vehicle (ELV) policy, which the Director-General of NADDC, Mr Joseph Osanipin, said had received the necessary approvals and was being positioned for implementation.
According to Osanipin, in developed countries, immediately you buy a new vehicle, during registration, you make a payment towards the disposal of that vehicle when it gets to the end of life.
He said that Nigeria’s failure to adopt such a system had resulted in abandoned vehicles across roadsides and public spaces, creating environmental and safety risks.
According to him, the ELV policy would introduce an organised recycling framework, allowing reusable components to be recovered and channelled into second-hand parts markets.
The NADDC boss said that more than 85 per cent of components in end-of-life vehicles were recyclable.
He said that while economic value would be unlocked, environmental protection and public health remained the primary drivers of the policy.
Osanipin said that another key reform thrust was the planned regulation of used vehicle imports, which had long dominated Nigeria’s auto market.
“We have realised that in all other countries, especially in Africa, before you bring in a used vehicle, it has to be tested. You must be satisfied that you are buying what you asked for,” he said.
He said that from 2026, Nigeria would begin enforcing pre-export testing of used vehicles, placing responsibility on importers rather than buyers.
Osanipin said that the move would help prevent end-of-life vehicles from being shipped into Nigeria under the guise of fairly used cars.
Beyond policy enforcement, the NADDC director-general said that capacity building remained a core pillar of the National Automotive Industry Development Plan (NAIDP).
“We are very concerned about certification. When our people are trained, what do they have to show for it? What defines their competencies?”
According to him, NADDC has developed National Occupational Standards for CNG conversion and EV maintenance, with plans to roll out structured certification by 2026.
Osanipin said that 21 Automotive Training Centres were being established across the six geopolitical zones to equip technicians with modern skills.
He said that converting the NAIDP into law would give investors the confidence they need.
“Investment in auto is huge. We need more than policy; we need an Act that investors can hold on to,” he said.
Industry players say recent government interventions are beginning to address long-standing concerns.
One such policy is the “Nigeria First” initiative, which mandates federal ministries, departments and agencies to prioritise Made-in-Nigeria goods, including vehicles and auto parts.
The Chairman of Innoson Vehicle Manufacturing (IVM), Mr Innocent Chukwuma, described the policy as a major boost for local producers.
“The policy will encourage patronage of locally made vehicles and enable the country to conserve foreign exchange otherwise spent on imported cars and spare parts,” Chukwuma said.
The Nigeria Automotive Manufacturers Association (NAMA) also expressed support for the proposed Local Automobile Industry Patronage Bill.
The association’s Chairman, Mr Bawo Omagbitse, said that the bill could significantly improve investor confidence.
“It could mark a turning point for the sector by guaranteeing sustained government patronage and boosting investor confidence,” he said.
However, stakeholders say skills development must go hand-in-hand with infrastructure and financing reforms.
Am auto dealer, Mr Garba Yakubu, said that stronger partnerships with the private investor and research institutions were essential for the industry growth.
“Although there seem to be some recorded progress in the sector, the coming years will determine whether it can overcome structural hurdles and deliver on its promise of jobs, innovation and economic diversification,” Yakubu said.
An economic expert, Mr Chukwuma Obi, described component manufacturing as the engine room of the automotive industry.
According to Obi, Nigeria spends more on auto parts imports than on vehicles, adding that high production costs continues to undermine local manufacturers.
“Forex scarcity and energy costs have made it hard to compete with imported vehicles.
“We need stronger incentives and deliberate enforcement of auto policies to grow local content,” he said.
An automobile expert, Mr Simon Agbese, said that without reliable infrastructure and consistent policy implementation, the sector’s growth would remain limited.
“By promoting local assembly, investing in component production and ensuring sustained government patronage, we can reposition this sector as a driver of industrial growth,” Agbese said.
The Minister of State for Industry, Sen. John Enoh, pledged to work with the National Assembly to fast-track legislation to strengthen investor protection and regulatory certainty in the sector.
Nigeria is taking practical steps to navigate the global transition to green mobility and continental trade under AfCFTA.
Stakeholders agree that sustained reforms, policy stability and inclusive engagement will determine whether the automotive sector can once again deliver jobs, innovation and industrial growth.(NANFeatures)
****If used, please credit the writer and the News Agency of Nigeria.
