NADDC Reiterates Urgent Need for Passage of the Nigerian Automotive Industry Development Policy (NAIDP) into Law

On the 8th of October 2025, in Lagos at the Lagos chamber of commerce and industry, The Director General of the National Automotive Design and Development Council (NADDC), Mr. Oluwemimo Joseph Osanipin, has reiterated the urgent need for the Nigerian Automotive Industry Development Policy (NAIDP) to be passed into law, describing it as a critical enabler of industrial transformation and economic diversification in Nigeria.

Speaking during his keynote address at the Lagos Chamber of Commerce and Industry (LCCI) event themed “The Impact of Non-Passage of the NAID Policy into Law on the Automobile Industry,” Mr. Osanipin highlighted that the absence of legislative backing for the NAIDP continues to expose the sector to uncertainties, discourage investors, and stall Nigeria’s ambition of becoming West Africa’s automotive hub.

“Since its introduction in 2014, the NAIDP has been a comprehensive roadmap for developing our automotive sector—creating jobs, attracting investment, and deepening technology transfer,” Mr. Osanipin stated. “However, without the law, we risk reversing the gains we’ve made and losing competitiveness to neighbouring African countries that already have codified auto policies under AfCFTA.”

The NADDC DG further noted that over 58 automotive assemblers have made investment commitments under the policy, with more than 30 companies actively assembling vehicles in Nigeria today.

He cited the success of local brands such as Innoson, Jet and Nord, and the Council’s progress in areas like capacity building, component development, market expansion, and green mobility innovation.

According to Osanipin, the Council has trained over 30,000 auto technicians across 18 training centres, established material and component test centres in Zaria and Enugu, and completed solar-powered EV charging stations to support Nigeria’s transition to clean energy vehicles.

“Our vision is to build a complete automotive ecosystem—from assembly plants to component production, research and development, and skills training—while promoting a circular economy through vehicle recycling and green mobility,” he added.

“We therefore call on the Lagos Chamber of Commerce and Industry and other private sector stakeholders to join us in advocating for the passage of this policy into law.”

The President of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Gabriel Idahosa, FCA. commended the NADDC for its steadfast commitment to developing Nigeria’s automotive sector and reaffirmed the Chamber’s readiness to support the policy’s passage.

“The LCCI recognizes the NAIDP as a transformative framework capable of driving industrialization, creating employment, and positioning Nigeria as an automotive hub in Africa,” Mr. Gabriel Idahosa, said.

“However, the absence of a legal framework continues to create regulatory uncertainty and discourages both local and foreign investments. We are committed to working closely with NADDC, the National Assembly, and relevant ministries to ensure that the NAIDP receives the legislative attention it deserves.”

He further stressed that the private sector must collaborate with government agencies like the NADDC to strengthen the automotive value chain, develop local component manufacturing, and promote innovation-driven growth.

Both institutions emphasized that the passage of the NAIDP into law would secure Nigeria’s automotive future, protect existing investments, and empower Nigerian youths with sustainable skills.

“The NAIDP is not merely a policy; it is a national development instrument,” Mr. Osanipin concluded. “Its passage will ensure a future where Nigerians drive vehicles made in Nigeria, by Nigerians, and for the Nigerian market and beyond.”

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ACHIEVEMENTS IN INUSTRIAL AND INFRASTRUCTURE DEPARTMENT

Introduction

The IID focused on advancing Nigeria’s  automotive industry through infrastructure development, skill acquisition, local content promotion, technical support, and policy implementation. Key responsibilities include:
• Developing industrial parks and auto production facilities
• Promoting skills development and job creation
• Supporting vehicle model appraisals
• Coordinating engineering efforts and component parts development
• Managing the informal automotive sector
• Promoting mechanic villages and training institutes

Highlights of 2024 Activities

A. Standards and Guidelines
• Validated National Occupational Standards (NOS) for auto gas and electric vehicles in partnership with NBTE.
• Designed guidelines for registration/licensing of CNG conversion workshops nationwide.
• Held national stakeholders’ engagement to finalize CNG workshop registration standards.

B. Infrastructure and Project Oversight
• Oversaw DG NADDC’s visit to Osun, Ondo, and Ekiti States, inspecting multiple NADDC projects and training centers.
• Completed design and began construction of the access road to NADDC Training Centre, Ikorodu.
• Restarted the Auto Service Hub project in Owerri, with land levy waived by the Imo State Government.
• Engaged in efforts to select PPP managers for NADDC Training Centres.

C. Equipment and Capacity Building
• Received and began installation of training tools at various NADDC centres.
• Partnered with suppliers for staff training on equipment use in Kano, Katsina, Jigawa, and Potiskum.

D. Youth and Technician Engagement
• Hosted a national youth conference on career prospects in the CNG automotive value chain, with over 500 participants and a car design competition.
• Conducted CNG vehicle conversion training in Ekiti State with Lanre Shittu Motors, empowering 45 technicians and converting cars for local institutions.

E. National Programs and Partnerships
• Licensed 70+ CNG conversion workshops across the country.
• Revived efforts on the Nnewi Automotive Industrial Park, with UNIDO reviewing the original Masterplan.
• Coordinated official commissioning of the NADDC Training Centre in Kano.
• Participated in the Anambra State Investment Summit.
• Held internal CNG conversion training for NADDC staff.

Conclusion

Despite funding limitations, the IID made significant progress in infrastructure development, youth empowerment, CNG adoption, and skill-building. Future efforts are poised to strengthen Nigeria’s role in the global automotive sector.

POLICY PLANNING STATISTICS ACHIEVEMENTS

INTRODUCTION

The Policy, Planning & Statistics (PPS) Department of the National Automotive Design and Development Council (NADDC) made notable progress in 2024, advancing the Nigerian automotive industry through strategic policy development, comprehensive planning, and data-driven initiatives.

ACHIEVEMENTS

  1. Growth of Assembly Plants
    New assembly plants registered during the year increased the number of licensed companies to 85. These companies offer a wide range of brands, including partnerships with new Original Equipment Manufacturers (OEMs). Thirty-seven (37) companies maintained production quality standards necessary for yearly license revalidation.   

  2. Revalidation and Processing of Licenses
    The department revalidated 23 licenses for existing local assemblers and processed 14 new applications for bonafide assembly licenses for new entrants into the sector.

  3. Ministerial Deliverables
    PPS submitted inputs to the Federal Ministry of Industry, Trade and Investment for the first to fourth quarters of 2024, aligning its contributions with national targets.

  4. Study Tour to South Africa
    From January 21–27, 2024, PPS organized a study tour to South Africa, targeting key players in the South African automotive industry. The tour aimed to attract investment and catalyze sustainable growth in Nigeria’s automotive sector through collaborative sessions.

  5. Validation of End-of-Life (ELV) Vehicle Recycling Regulation
    In collaboration with the Legal Unit, PPS finalized and secured Federal Ministry of Justice approval for the ELV Recycling Regulation in February 2024, laying the foundation for Nigeria’s vehicle recycling industry.

  6. Stakeholder Dialogue Meeting
    On April 18, 2024, PPS organized a critical dialogue between Local Automotive Component Manufacturers and Assemblers/Manufacturers. The meeting fostered collaboration, encouraged backward integration, and generated stakeholder consensus to strengthen Nigeria’s automotive component manufacturing capabilities.

  7. Inauguration of NAIDP Implementation Committee
    The department facilitated the inauguration of the Nigerian Automotive Industry Development Plan (NAIDP) Implementation Committee on May 23, 2024. The committee is tasked with addressing implementation challenges and ensuring continuous monitoring and evaluation of the NAIDP’s progress.

  8. Engagement with Hejia Industrial Group
    On October 17, 2024, PPS hosted a meeting with Hejia Industrial Group and its subsidiaries, Chengdu Auto Parts Co., Ltd., and Chengdu Chengbao Development Co., Ltd., exploring collaboration opportunities in automotive parts manufacturing and vehicle inspection services.

  9. Participation at Nigeria-Morocco Business Week
    From October 29 to November 1, 2024, PPS facilitated the participation of the NADDC Director-General and delegation at the Nigeria-Morocco Business Week. The delegation engaged in keynote speeches, panel discussions, B2B meetings, and factory visits, strengthening industrial ties between both nations.

  10. Oversight Visit by House Committee on Industry
    From November 12–15, 2024, PPS coordinated an oversight visit by the House Committee on Industry to vehicle assembly plants in Lagos, showcasing the progress in the sector.

  11. Collaboration Meeting with Nigerian Consumer Credit Corporation (CREDICORP)
    On December 5, 2024, PPS convened a meeting with CREDICORP to explore partnerships aimed at making vehicle financing accessible and affordable for Nigerian consumers.

  12. Oversight Visit by Senate Committee on Industry
    From December 8–12, 2024, PPS facilitated another oversight visit, this time by the Senate Committee on Industry, further strengthening government support for local assembly plants.

  13. Automotive Industry Stakeholders Conference
    On December 16, 2024, PPS organized a major conference gathering industry players to critically review challenges hindering NAIDP 2023–2033 implementation and jointly propose actionable strategies to overcome these obstacles.

  14. Annual National Automotive Industry Statistics
    In December 2024, PPS conducted its annual data collection exercise. The initiative assessed the current state of automotive workshops, skilled mechanics, and auto-component manufacturers, providing insights into sectoral quality and performance.

CONCLUSION

In 2024, the PPS Department demonstrated a strong commitment to advancing Nigeria’s automotive industry through strategic planning, effective policy implementation, stakeholder engagement, and data-driven action. Their efforts have significantly advanced the National Automotive Industry Development Plan (NAIDP) 2023–2033, laying a solid foundation for future sector growth and sustainable development.