Abuja: As the global automotive industry transitions from petrol-powered engines to electric vehicles (EVs), compressed natural gas (CNG), and cleaner mobility systems, Nigeria 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.
According to News Agency of Nigeria, 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 explained that Nigeria’s failure to adopt such a system had resulted in abandoned vehicles across roadsides and public spaces, creating environmental and safety risks.
The NADDC boss mentioned that the ELV policy would introduce an organized recycling framework, allowing reusable components to be recovered and channeled into second-hand parts markets. More than 85 per cent of components in end-of-life vehicles are recyclable, he said, adding that while economic value would be unlocked, environmental protection and public health remained the primary drivers of the policy.
Osanipin also outlined a plan to regulate used vehicle imports, which have long dominated Nigeria’s auto market. From 2026, Nigeria will begin enforcing pre-export testing of used vehicles, placing responsibility on importers rather than buyers. This move aims to prevent end-of-life vehicles from being shipped into Nigeria under the guise of fairly used cars.
Beyond policy enforcement, the NADDC director-general emphasized capacity building as a core pillar of the National Automotive Industry Development Plan (NAIDP). He highlighted the development of National Occupational Standards for CNG conversion and EV maintenance, with plans to roll out structured certification by 2026. Additionally, 21 Automotive Training Centres are being established across the six geopolitical zones to equip technicians with modern skills.
Industry players have noted that 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 prioritize 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, encouraging patronage of locally made vehicles and enabling the country to conserve foreign exchange otherwise spent on imported cars and spare parts.
The Nigeria Automotive Manufacturers Association (NAMA) also expressed support for the proposed Local Automobile Industry Patronage Bill. The association’s Chairman, Mr. Bawo Omagbitse, stated that the bill could significantly improve investor confidence by guaranteeing sustained government patronage and boosting investor confidence.
However, stakeholders stress that skills development must go hand-in-hand with infrastructure and financing reforms. An auto dealer, Mr. Garba Yakubu, emphasized the need for stronger partnerships with private investors and research institutions for industry growth. The coming years will determine whether the sector can overcome structural hurdles and deliver on its promise of jobs, innovation, and economic diversification.
An economic expert, Mr. Chukwuma Obi, pointed out that Nigeria spends more on auto parts imports than on vehicles, with high production costs continuing to undermine local manufacturers. He called for stronger incentives and deliberate enforcement of auto policies to grow local content.
Meanwhile, an automobile expert, Mr. Simon Agbese, remarked that without reliable infrastructure and consistent policy implementation, the sector’s growth would remain limited. He advocated for promoting local assembly, investing in component production, and ensuring sustained government patronage to reposition the sector as a driver of industrial growth.
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.