New Policy and Financing Push Charts Course for Nigeria’s Automotive Industry

In a concerted effort to revitalize Nigeria’s automotive sector, leaders from the nation’s industrial, financial, and political spheres have reaffirmed their commitment to a new path forward. This resolve was cemented during a high-level four-day retreat in Delta State for members of the House Committee on Industry. The session, convened by the Committee in collaboration with the National Automotive Design and Development Council (NADDC) and the Delta State Government, united key stakeholders to chart a course for strengthening local automobile production, improving vehicle financing, and curbing the influx of used imports.

In his keynote address, the Chairman of the House Committee on Industry, Hon. Dr. Enitan Dolapo Badru, emphasized the critical role of legislation and credit, proposing that every bank in Nigeria dedicate a minimum of six percent of its total lending portfolio to automotive credit schemes. He stated that this is essential for creating an affordable vehicle ownership system and stimulating domestic manufacturing. Dr. Badru further called for closer collaboration between the legislature, the financial sector, and regulators to establish a sustainable financing model and a guaranteed used-car market akin to those in developed economies.

Echoing this focus on a supportive framework, the Director-General of the NADDC, Chief Oluwemimo Joseph Osanipin, underscored the need for comprehensive policies to bolster local car ownership and reduce import dependency. He noted that cultivating a culture of local ownership, backed by the Central Bank and commercial banks, would stimulate job creation and encourage new automotive enterprises across Nigeria. Chief Osanipin affirmed that with the right policy support, the Nigerian automotive market can become self-sustaining and globally competitive.

Representing the Governor of Delta State, Chief of Staff Prince Erijo highlighted the state’s readiness to partner with federal and private-sector actors. He pointed to the state’s endowment of solid minerals like kaolin and silicon, as well as its coastal location and port infrastructure, as providing immense logistical advantages for component supply, assembly, and export-oriented production. Prince Johnson reaffirmed the state government’s commitment to supporting the retreat’s recommendations and fostering an enabling environment for automotive growth.

The deliberations concluded with key resolutions to engage the NADDC on implementing the NAIDP framework, partner with the Central Bank and commercial banks to implement viable credit schemes, and collaborate with the National Assembly on supportive legislation. Stakeholders expressed optimism that these coordinated efforts will usher in a new era of innovation, job creation, and sustainable development within Nigeria’s automotive ecosystem.