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Bill to address policy instability, enforcement gaps, attract investments
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From Fred Ezeh, Abuja
The National Automotive Design and Development Council (NADDC) has proposed a comprehensive legislative overhaul of Nigeria’s automotive industry, seeking its transition from a council to a commission with stronger regulatory and enforcement powers.
The council said the proposed National Automotive Industry Bill 2026 would address policy inconsistencies, enforcement bottlenecks and legislative gaps that have hindered investments and the development of the country’s automotive sector.
The Director-General of NADDC, Otunba Oluwemi Odusanya, disclosed this at a stakeholders’ engagement on the draft bill, where representatives of government agencies, the private sector and other industry stakeholders deliberated on provisions of the proposed legislation.
Odusanya said the rapid evolution of global automotive manufacturing, emerging green technologies and regional trade dynamics had made an updated legal framework imperative.
He noted that the automotive industry was capital-intensive and required a stable policy environment and strong institutional structures to attract long-term investments.
According to him, policy uncertainty, enforcement challenges and legislative gaps have continued to discourage capital commitments to the sector.
He said the National Automotive Industry Bill 2026 would repeal the existing NADDC Act of 2024 and establish the National Automotive Development Commission.
The proposed commission, he explained, would have a robust regulatory oversight and enforcement mandate to streamline the management of the automotive industry.
Odusanya said the legislation would also provide statutory safeguards for policy incentives and implementation structures under the National Automotive Industry Development Plan, thereby assuring investors of long-term policy stability.
He said the plan, which was built around seven pillars, was designed to stimulate the growth of the industry but required stronger legal backing to ensure effective implementation. “We need to give teeth to those policies so that they can be effective,” he said.
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The NADDC boss also called for stronger collaboration among relevant government agencies to harmonise operations, standards, environmental compliance, safety regulations and anti-smuggling efforts.
He identified the Standards Organisation of Nigeria (SON), the Nigeria Customs Service (NCS), the Federal Road Safety Corps (FRSC), and agencies responsible for environmental protection and compressed natural gas development as critical partners in the implementation of the proposed legislation.
Odusanya said the bill was also expected to promote local value addition through backward integration, increased utilisation of raw materials, local component manufacturing and sustainable job creation for Nigerian youths.
He explained that the council had earlier engaged private sector operators in Lagos to obtain their views, criticisms and recommendations on the draft legislation.
He said their contributions had been collated and incorporated into the working draft, adding that the current engagement was aimed at ensuring that the final document reflected the views and statutory responsibilities of public sector institutions.
“Industrial development intersects directly with fiscal strategy, trade facilitation, customs administration, environmental protection, financial regulation, standards enforcement and legal governance,” he said.
He urged participating ministries, departments and agencies to identify provisions that might conflict with their mandates or create regulatory overlaps.
Odusanya said the engagement would help establish a seamless, whole-of-government approach to automotive industry development.
He called on participants to make constructive contributions, noting that their observations and recommendations would inform the final draft before its transmission to the National Assembly.
He further explained that the proposed legislation was expected to strengthen Nigeria’s automotive industrial base, improve local manufacturing capacity and position the country to benefit from emerging opportunities in mobility, electrification and regional trade under the African Continental Free Trade Area.
