In a decisive move to secure the future of Nigeria’s automotive industry, the National Automotive Design and Development Council (NADDC) is intensifying efforts to transition the National Automotive Industry Development Plan (NAIDP) from a policy framework into a formal Act of Parliament. This legislative push represents a pivotal moment for the sector, aiming to provide the stability and confidence needed to unlock billions of dollars in investment.
During an interactive session with journalists in Abuja, the Director-General of the NADDC, Mr. Joseph Osanipin, underscored the critical need for this transition. He explained that while the NAIDP provides a strategic roadmap, its current status as a policy leaves it vulnerable to shifts in administrative priorities. “To guarantee policy stability and attract the scale of long-term investment our automotive sector requires, we must have the force of law,” Osanipin stated.
The core argument for legislation hinges on the unique nature of automotive manufacturing. Osanipin highlighted the staggering capital requirements, noting that establishing a single, functional, integrated automotive manufacturing plant can cost between $3 billion and $4 billion. Investors committing funds of this magnitude over a 10-20 year horizon demand more than policy pronouncements; they require legal certainty that the rules of engagement—including incentives, protections, and standards—will not be arbitrarily altered with a change in government or minister.
“Converting the NAIDP into legislation is about building an institutional framework,” Osanipin elaborated. “It ensures continuity, protects investments from policy reversals, and sends an unambiguous signal to the global automotive community that Nigeria is serious about building a durable industrial base.”
The proposed bill is expected to enshrine several key pillars into law:
- Institutionalized Incentives: Clear, legally-backed fiscal and non-fiscal incentives for Original Equipment Manufacturers (OEMs) and component makers, moving beyond discretionary government packages.
- Local Content Development: A statutory mandate for progressive local value addition, creating a roadmap for technology transfer and skills development that supports broader industrialisation goals.
- Standards Enforcement: Legal authority to enforce vehicle safety, emissions, and quality standards across the entire value chain, from new imports to locally assembled units, protecting consumers and elevating industry quality.
Osanipin confirmed that discussions are actively ongoing with critical stakeholders, including the National Assembly, the Ministry of Industry, Trade and Investment, existing assembly plants, and potential investors. This collaborative approach is vital to crafting a bill that is both ambitious and pragmatic, addressing industry concerns while aligning with national economic objectives.
This legislative drive is not merely an administrative step; it is the foundational prerequisite for Nigeria’s ambition to develop a sustainable and globally competitive automotive industry. By providing the “rules of the road” in perpetuity, the NAIDP Act aims to transform the sector from one reliant on semi-knock-down (SKD) assembly to one capable of deep manufacturing, job creation, and technological innovation. The success of this bill could determine whether Nigeria becomes a mere automotive market or a true automotive manufacturing hub for West Africa.
Edited by Bashir Rabe Mani
