The National Assembly of Nigeria has vowed to accelerate the proposed National Automotive Industry Bill 2026 to safeguard local vehicle manufacturers and decrease the country's reliance on imported used vehicles. Chairman of the Senate Committee on Industry, Senator Francis Fadahunsi, made this commitment during an inspection of PAN Nigeria Limited's facilities in Kaduna, alongside officials of the National Automotive Design and Development Council (NADDC). Fadahunsi emphasized that Nigeria can no longer serve as a dumping ground for foreign-used vehicles.
Senator Fadahunsi, a retired Customs officer, highlighted the economic costs associated with importing large numbers of used vehicles instead of supporting local production. He urged the Federal Government to encourage Nigerians to patronize locally manufactured vehicles, citing the capacity of Nigerian engineers to produce vehicles and tricycles suited to the country's needs. The committee's inspection revealed that locally produced alternatives could serve rural communities and other users dependent on imported transportation equipment.
Fadahunsi described PAN Nigeria's facility as a vital industrial asset that could significantly contribute to job creation, economic growth, and access to affordable transportation if its production capacity were fully utilized. He appealed to President Bola Tinubu to strengthen government support for the automotive sector, warning that continued vehicle imports were depleting Nigeria's foreign reserves. Fadahunsi disclosed that PAN Nigeria's facility occupies nearly 300,000 square meters and could employ over 3,000 people at full capacity.
Managing Director of PAN Nigeria Limited, Taiwo Oluleye, called on the National Assembly to urgently pass the proposed National Automotive Industry Bill 2026, stating that local manufacturers need stronger legislative protection to survive and attract fresh investments. Oluleye attributed the company's production challenges to high operating costs, foreign exchange difficulties, expensive borrowing, and inconsistent government policies. She noted that PAN had expanded beyond a single-brand assembly plant to produce multiple vehicle categories.
Oluleye described the automotive sector as a major opportunity for Nigeria's industrial development, citing its connections with industries such as steel, aluminum, plastics, rubber, finance, information technology, logistics, and engineering. She emphasized that stronger local production could help Nigeria benefit from opportunities under the African Continental Free Trade Area and potentially become a vehicle supplier to other African countries. However, she stressed that achieving this would require consistent policies, improved local content, and an enabling environment for manufacturers.
Director-General of NADDC, Oluwemimo Joseph Osanipin, stated that the inspection demonstrated Nigeria's capacity to meet a substantial portion of domestic vehicle demand through local assembly. He noted that PAN's installed capacity of 90,000 vehicles annually, combined with facilities operated by other manufacturers, could help meet local demand if the plants operated closer to their full potential. Osanipin added that NADDC was working to address challenges facing the sector, including legislative gaps, limited patronage, and access to credit.
The proposed National Automotive Industry Bill 2026 aims to provide a stronger framework for developing local manufacturing, protecting investments, and reducing Nigeria's dependence on imported vehicles. The bill's passage is expected to support the growth of the automotive industry, create jobs, and conserve foreign exchange. Key stakeholders, including Senator Fadahunsi and Taiwo Oluleye, have emphasized the importance of the bill in ensuring the survival and growth of local vehicle manufacturers.
Key points
- The National Assembly of Nigeria has pledged to fast-track the National Automotive Industry Bill 2026 to protect local vehicle manufacturers and reduce dependence on imported used vehicles.
- Local vehicle manufacturers, such as PAN Nigeria Limited, have called for stronger legislative protection to survive and attract fresh investments.
- The automotive sector is seen as a major opportunity for Nigeria's industrial development, with potential connections to other industries and opportunities under the African Continental Free Trade Area.
