Senate Begins Comprehensive Review Of Nigeria’s Automotive Framework

The Senate has begun a comprehensive review of Nigeria’s automotive development framework, launching a wide-ranging assessment of the Nigerian Automotive Industry Development Plan (NAIDP) 2014–2024 and related policies that govern backward integration and local content in vehicle assembly.

Chairman of the Senate Committee on Industry, Senator Francis Fadahunsi, said Nigeria can no longer afford the economic drag caused by an underperforming automotive sector.

Speaking at the committee’s stakeholder roundtable organised in partnership with the National Automotive Design and Development Council (NADDC) and themed: “Revitalising Nigeria’s Automotive Industry: Legislative Pathways for Innovation, Investment and Industrial Growth, ” in Abuja, Fadahunsi said the forum was convened to “facilitate interaction among various diverse stakeholders and share ideas charting a more straight way forward for the development of the automotive sector.”

He lamented that although Nigeria is recognised as one of Africa’s largest economies, its automotive industry remains “largely underdeveloped” despite its sizeable domestic market and abundant natural and human resources.

He warned that the widening gap between potential and current performance poses significant economic risks, noting that the disparity between “the nation’s potential as a regional auto hub and the current state of the industry needs to be urgently addressed,” insisting that “the negative economic implications of a poorly developed automotive sector cannot be overemphasised.”

Fadahunsi said the Senate is committed to reversing the sector’s stagnation, adding that the dialogue represents a crucial step toward actionable reforms. “Any effort to turn around the fortunes of the automotive industry for the Nigerian economy such as this Roundtable Dialogue is to be applauded,” he said.

He urged participants to interrogate the status, gaps and challenges of the NAIDP, describing such scrutiny as essential for meaningful legislative action. “The implementation status of the Nigerian Automotive Industry Development Plan (NAIDP) 2014–2024 by the three key stakeholders—namely the federal government, the NADDC, and the automotive companies should be examined,” he stated.

The senator also called for a deeper review of backward integration and local content in vehicle assembly, urging stakeholders to identify structural constraints and propose practical solutions. He highlighted the need to assess “challenges faced by the key players in the industry and suggestions for possible solutions and policy and legislative actions necessary for the desired growth and development of the Nigerian industry.”

Fadahunsi assured that insights from the roundtable would guide the Senate’s legislative agenda, with an emphasis on stimulating investment, promoting innovation and building a competitive automotive value chain capable of supporting Nigeria’s broader industrial aspirations.

Director-general , NADDC, Joseph Osanipin, urged the lawmakers and industry players to unite behind a clearer legislative and policy framework to unlock investment and raise standards in Nigeria’s automotive sector.

Osanipin said the industry cannot expand without coordinated action among policymakers, manufacturers and regulators.
“We need the National Assembly, the auto manufacturers and we the Executives to come up with policies and implement them,” he said.

He noted the sector’s strong economic linkages, stressing that the automotive value chain drives growth across agriculture, manufacturing and services.

The NADDC boss added that lawmakers must fully understand operational challenges weighing on the sector. “We want senators to understand the challenges we are facing, because some of these challenges can be addressed through legislation,” he stated.

Osanipin said the agency is pushing stakeholders to align behind a legislative pathway that supports innovation and investment.