The National Automotive Design and Development Council was formed by Act no. 83 of 30th May 2014 from the merger of the National Automotive Council and the Centre for Automotive Design and Development as a Parastatal of the Federal Ministry of Industry, Trade and Investment.
The National Automotive Design and Development Council was set up primarily to initiate, recommend and supervise policies and programmes for locally manufactured vehicles and components. The functions include the following:
- Regularly study and review the automotive parts/ components development industry in Nigeria;
- Evolve a local content programme specifying which component parts are to be continuously deleted from the imported Completely Knocked Down (CKD) parts;
- Recommend incentive and protective measures for the development of the Nigerian automotive industry;
- Appraise and recommend new models of vehicles envisaged for the Nigeria market to ensure model rationalisation;
- Identify and classify the components and parts which can be standardised to ensure their interchangeability;
- Regularly evaluate the pricing structure and quality of the products of the Assembly Plants as well as imported vehicles and parts to ensure international competitiveness;
- Forecast the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw materials requirements and equipment;
- Encourage the development and production of raw materials such as sheet metal, alloys and special steel needed by the automotive industry;
- Regularly review the penalties to be imposed for non-compliance with the guidelines and programmes specified by the Council;
- Carry out inspection and other quality assurance activities in factories, ports and roads in pursuance of other objectives specified above;
- Research, design, develop and test low cost vehicle prototypes;
- Establish referral auto-test centres to provide technical support services to automotive sub-sector;
- Liaise with the Association of Local Content Manufacturers of Nigeria, Manufacturers Association of Nigeria and other stakeholders to ensure that the existing installed capacities are fully utilised;
- Draft and recommend standards for the automotive industry;
- Develop programmes for the acquisition of technology for vehicles and components design, manufacture and assembly;
- Implement the National Automotive Policy;
- Develop and regularly review criteria for determining an automotive manufacturing plant;
- Mandate vehicle-manufacturing companies that import more than 10,000 vehicles of any brand per annum to establish an assembly plant in Nigeria;
- Monitor and ensure compliance with paragraph (r ) of this section by setting a procedure for enforcement under this Act; and
- Perform such other functions as may be assigned it by the Minister from time to time.
NADDC mandate is to revitalize and grow the Nigeria automotive sector because of its multiplier effect on the economy. Nigeria has all the critical elements to develop a sustainable automotive industry. It has a large domestic market to meet critical output and trainable manpower abound.
The Genesis of the Automotive Industry in Nigeria
The Automotive Industry in Nigeria dates back to early 1960s when private companies like UAC, Leventis, SCOA, BEWAC and R.T. Briscoe pioneered the establishment of Auto Assembly Plants using Completely Knocked Down (CKD) or Semi-Knocked Down (SKD) parts.
Government however, became involved in the industry between 1970-1980 when it concluded agreements with a number of Automobile Plants in Europe to set up 2 cars and 4 truck/light commercial vehicles assembly plants using Completely Knocked Down (CKD) Parts.
The 2 car plants are Peugeot Nigeria Ltd. (PAN), Kaduna, and Volkswagen of Nigeria Ltd. (VWON) Lagos. The 4 truck plants are Anambra Motor Manufacturing Company (ANAMMCO), Enugu, Styer Nigeria Ltd., Bauchi, National Truck Manufacturers (NTM), Kano, and Leyland Nigeria Ltd., Ibadan. These car and truck/light commercial vehicle plants were all privatised by the end of 2007.
In 1982, the Federal Government completed agreements with five manufacturers for the establishment of the following five light commercial vehicle assembly plants: Mitsubishi in Ilorin, Nissan in Minna, Peugeot in Gusau, Isuzu in Maiduguri and Mazda in Umuahia.
However, they were not established, though GM subsequently entered into partnership with UAC to produce Isuzu by FMI of UAC, which later became GM Nigeria Ltd.
The Nigerian automotive Industry has installed capacity to produce 108,000 cars, 56,000 commercial vehicles, 10,000 tractors, 1,000,000 motorcycles and 1,000,000 bicycles annually. Capacity utilisation in vehicle manufacture is below 10% and about 40% in motorcycle, bicycle and components parts manufacturing. The current vehicle inflow into the economy is about 50,000 new and 150,000 used ones. This translates into about 100,000 units of new vehicles annually and is set to rise as the economy improves. The ECOWAS countries are current and potential customers for our auto products.
Structure of NADDC
Structure of National Automotive design Development Council
National Automotive design Development Council is made up of a Governing Board, its committees and the full secretariat. membership of the Governing Board is drawn from relevant agencies and comprises of representatives of the government:
- Nigerian Automotive Manufacturers Association (NAMA);
- Automotive Local content Manufacturers Association of Nigeria (ALCMAN);
- Standards Organisation of Nigeria(SON);
- Raw Materials Research and Development Council (RMRDC);
- Manufacturers Association of Nigeria (MAN);
- Nigerian Society of Engineers (NSE); and
- Federal Ministry of trade and investment
The governing board of the council has three standing committees. They are:
- Policy, Planning and establishment committee
- Technical Committee; and
- Finance and General Purpose Committee
The National Automotive Policy
- Government recognized the important and basic role of the automotive industry in the industrial development of Nigeria by resuscitating the standing technical committee on national automotive industry (STC on NAI) in 1990.
- The STC on NAI ( now NADDC) with inputs from the Nigerian automobile manufacturers association (NAMA), and other organization involved in the industry drafted the automotive policy for Nigeria.
- Presidential approval for the policy was given on May 28, 2014.
- The policy document was formally lauched on May 28, 2014. The document provided for the establishment of the national automotive council as a parastatal of the federal ministry of industry.
- Acr No. 6 of 2014 backed up the establishment of the council.
The trust of the national automotive policy shall be to ensure the survival, growth of the Nigerian automotive industry using local, human and material resources. This is with a view to enhancing the industry’s contribution to the national economy, especially in the areas of transportation of people and goods.
The elements of this objective include:
- Provision of automotive vehicles for urban and human areas
- Accelerated technological development of the Nigeria economy.
- Increased employment opportunities for Nigerians.
- Conservation of scarce foreign exchange.
- Establishment of integrated Automotive Industry in Nigeria.
- Standardization and rationalization of the Nigeria automotive industry.
- Increased private sector participation in the establishment of the auto industry.
- Technology acquisition; and
- Creating conducive environment through the introduction of appropriate fiscal policy and monetary incentives.
Mission and Vision
The National Automotive Design and Development Council’s vision and mission are sub-sects of the Federal Ministry of Trade and Investment vision, which is “to transform Nigeria into a modern industrialised nation” and mission statement is “to design and implement policies, programmes and strategies for an effective, competitive and diversified private sector led industrialisation process”.
To position Nigeria as one of the leading automotive manufacturing nations in the world.
To create an enabling environment for the manufacture of Nigerian made vehicles of international standards at competitive prices using local human and material resources.
The Council pursues this aspiration through the creation of an enabling environment achieved by an appropriate mix of protective measures, incentives, regulatory activities, and local content programmes.
The incremental results of this effort potentially generate large employment, transfer technology, boost transportation capacities, save foreign exchange and even bring about export. The Council’s policy activities essentially complement the industrial policy of Nigeria.
* Regularly study and review the automotive parts components development industry in Nigeria;
* Evolve a local content programme specifying which component parts are to be continuously deleted from the imported Completely Knocked Down parts;
* Recommend incentive and protective measures to ensure compliance with approved local content programmes;
* Forecast the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw materials requirements;
* Prevail on government to patronize local automotive industry to boost capacity utilisation through hire purchase scheme amongst others;
* Support plant/industry expansion and infrastructure needs through provision of soft loans;
* Establish a test centre for the certification of standards and quality assurance;
* Establish a specialised training, design and development and mass production centres;
* Engage in capacity building and up grading of manpower;
* Extend grants to support R & D activities in institutions; and
* Through its Ombudsmann Committee, to respond to public complaints on locally manufactured products or the activities of manufacturers.
Expectation from the Automotive Industry.
* Reciprocate government gesture by offering their products at realistic prices;
* Be true and honest enough to furnish NADDC with information on their operations;
* Integrate auto parts certified by the Standards Organisation of Nigeria in locally assembled products;
* Disclose specific technical details to components/parts manufacturers to enable them produce as appropriate;
* Pursue local content deletion programme; and
* Abide by all government rules and regulations.