Nigeria Intensifies Push for Domestic Auto Industry, Targets Imported Used Vehicles

In a decisive move to reshape its automotive landscape, the Nigerian Federal Government has announced a coordinated strategy to curb the importation of used vehicles and accelerate the growth of local manufacturing. The policy shift, aimed at improving road safety, boosting industrial capacity, and creating jobs, was formally outlined at the 18th Nigeria Auto Journalists Association (NAJA) International Auto Awards in Lagos.

The Director-General of the National Automotive Design and Development Council (NADDC), Otunba Oluwemimo Joseph Osanipin, stated that the government is now actively working to phase out the country’s heavy reliance on imported used vehicles, commonly known as “Tokunbo.” He emphasized that efforts are being intensified to ensure only high-quality vehicles enter the Nigerian market, signaling a clear transition towards fostering a sustainable domestic auto industry.

A central pillar of this strategy is the long-pending  National Automotive Industry Development Policy (NAIDP), which the government is prioritizing for legislative action. Osanipin disclosed that the NADDC is working to secure the passage of the auto policy bill by the **second quarter of 2026**. “We remain committed to policies that strengthen local manufacturing,” Osanipin said. “We are going to push [the NAIDP] to the National Assembly shortly and will need stakeholders’ participation in the public hearing.”

This renewed drive is bolstered by two key recent developments. First, the Federal Executive Council (FEC) has approved the overarching Nigeria Industry Policy (NIP), which provides a strategic framework for industrial development and explicitly identifies the automotive sector as a priority. Second, the government launched the End-of-Life Vehicle (ELV) Recycling Regulation in March 2025. This regulation is designed to formalize the recycling of old and unroadworthy vehicles, promoting a circular economy, enhancing environmental sustainability, and improving road safety.

Senator John Enoh, the Minister of State for Industry, affirmed through Osanipin that these steps are deliberate and interlinked. “The Nigeria Industry Policy has been approved to guide industrial development. The next step is the enactment of the Auto Policy into law,” he stated, underscoring the sector’s strategic importance.

Industry analysts view this multi-pronged approach, combining regulatory action against used imports, a clear legislative timeline for the NAIDP, and supporting recycling frameworks, as the most concerted effort in years to transition Nigeria from a massive automobile import market to a thriving manufacturing hub. The success of this campaign is expected to hinge on consistent policy implementation, attracting significant investment into local assembly plants, and ensuring affordable vehicle options for the Nigerian public.