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The Federal Government has stepped up efforts to reduce Nigeria’s heavy reliance on imported used vehicles, signalling renewed commitment to reviving local automobile manufacturing through the long-delayed National Auto Industry Development Policy.
The push gained momentum following the approval of the Nigeria Industry Policy by the Federal Executive Council, a move industry stakeholders say provides the legal and strategic framework needed to finally bring the National Automotive Industry Development Plan (NAIDP) also known as Auto Policy into force.
The assurance was given at the 18th Nigeria Auto Journalists Association (NAJA) International Awards held in Lagos, where the Minister of State for Industry, Senator John Enoh, described the council’s approval of the Nigeria Industrial Policy as a deliberate step to reposition key sectors of the economy.
Speaking through the Director General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, the minister said the policy now serves as the government’s industrial compass and clears the path for the Auto policy to be enacted by the National Assembly.
According to him, the automotive sector is one of the priority industries capable of delivering large-scale jobs, technology transfer and value chain development if supported by clear and enforceable rules.
“The Nigeria Industry Policy has been approved by the Federal Executive Council and now guides Nigeria’s industrial development,” Osanipin said, adding, “The next step is to enact the Auto Policy into law. These are deliberate actions to ensure the automotive sector receives the attention and priority it deserves.”
He disclosed that the End of Life Vehicle Recycling Regulation introduced in March 2025 would be operational next year.
The regulation seeks to formalise vehicle recycling in Nigeria, promote a circular economy, improve environmental protection and enhance road safety.
“You will realise that in the last few months we launched the End of Life Vehicle and we are putting in place the operational procedure for the End of Life Vehicle. By second quarter of next year, we would be implementing in full the end of life vehicle. What that means is that vehicles that are not supposed to be on the road would no longer be on the road.
“Then secondly vehicles that are not supposed to be on the road would not be allowed to come into Nigeria,” he said.
Under the framework, old and unserviceable vehicles are expected to be properly dismantled and recycled, creating new employment opportunities while reducing the environmental and safety risks associated with aging vehicles on Nigerian roads.
At the same event in Lagos, Osanipin disclosed that government efforts to strengthen local production are closely linked to plans to phase out imported used vehicles, which currently dominate Nigeria’s automotive market.
He said the NADDC, working with relevant stakeholders, is tightening entry standards to ensure that only quality vehicles are allowed into the country, while gradually reducing dependence on second-hand imports in favour of locally assembled and manufactured alternatives.
According to him, the continued influx of used vehicles has undermined local production, weakened vehicle standards and limited the growth of Nigeria’s automotive value chain.
“The Federal Government is committed to strengthening local manufacturing in Nigeria,” Osanipin said. “Our major target is to see the Auto Policy enacted by mid-2026. We will submit it to the National Assembly soon and ensure extensive stakeholder engagement during the public hearing process.”
He added that the passage of the policy would provide the legal backing needed to implement measures that support local manufacturers and gradually discourage used vehicle imports.
