FG pushes new policy of local car production, to replace used vehicle imports

The Nigerian government is intensifying efforts to shift the country away from dependence on imported used cars, aiming to jump-start domestic vehicle manufacturing through a revived national auto policy.

This push follows the Federal Executive Council’s approval of a broader Nigeria Industry Policy, which stakeholders say provides the necessary legal foundation to finally implement the long-awaited National Automotive Industry Development Plan (NAIDP), or Auto Policy.

At a recent automotive awards ceremony in Lagos, the government outlined its strategy. Representing the Minister of Industry, the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, stated the new industrial policy acts as a “compass,” paving the way for the Auto Policy to be formalized into law by the National Assembly.

He emphasized the automotive sector’s potential for large-scale job creation, technology transfer, and economic growth, but stressed it requires clear, enforceable regulations to thrive.

The key government initiatives include:

1. Enacting the Auto Policy: The NADDC’s primary goal is to see the Auto Policy become law by mid-2026. The bill will soon be sent to the National Assembly, with plans for extensive public consultation.

2. Tightening Vehicle Imports: The government is working to raise entry standards for imported vehicles. The aim is to ensure only quality vehicles enter Nigeria and to gradually reduce reliance on second-hand imports, which are seen as undermining local production and vehicle standards.

3. Launching Vehicle Recycling: A new “End of Life Vehicle Recycling Regulation,” introduced in March 2025, is set to become fully operational by the second quarter of 2026. This program will formally regulate the recycling of old and unroadworthy vehicles. Its goals are to promote a circular economy, improve environmental protection, enhance road safety, and create new jobs in the recycling sector. Officials stated that under this framework, unfit vehicles will be removed from Nigerian roads and banned from importation.

The overall strategy signals a deliberate move to reposition the automotive industry as a priority sector, supporting local assembly and manufacturing while creating a regulated, safer, and more sustainable vehicle ecosystem in Nigeria.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

See author's posts