The Senate Committee on Industry, led by Chairman Senator Francis Adenigba Fadahunsi, has urged President Bola Ahmed Tinubu to intensify government support for Nigeria's local vehicle manufacturing sector. This call was made during an oversight visit to PAN Nigeria Limited in Kaduna, where the committee assessed the company's manufacturing facilities and capabilities. The visit aimed to determine how the Federal Government's Renewed Hope Agenda could benefit Nigerians, particularly those in rural communities.
During the visit, Fadahunsi expressed concerns over Nigeria's reliance on imported vehicles, describing the country as a "dumping ground" for foreign vehicles. He criticised the continued influx of used vehicles, known as Tokunbo, into the Nigerian market. The senator emphasised that greater government support for local production would reduce Nigeria's dependence on imports and promote affordable mobility. He highlighted that the committee had seen locally developed prototypes capable of competing favourably with imported vehicles and tricycles.
PAN Nigeria Limited's extensive facilities in Kaduna demonstrate that Nigeria possesses the infrastructure and technical capacity to produce vehicles on a large scale if adequately supported by the government. The plant has an installed capacity of about 90,000 vehicles annually and can produce up to 240 vehicles daily. Fadahunsi noted that reviving PAN to full capacity could significantly increase employment and stimulate economic activity, potentially employing over 3,000 staff.
The senator also praised PAN's training facilities, which have trained thousands of artisans, including roadside mechanics and vulcanisers. He highlighted that the training of 12,000 artisans could have a multiplier effect across rural communities, positively impacting around one million people. Fadahunsi urged the Federal Government to strengthen its support for such programmes to improve livelihoods and expand economic opportunities outside major urban centres.
The Managing Director of PAN Nigeria Limited, Mrs Taiwo Oluleye, appealed to the Senate committee to support the proposed National Automotive Industry Bill 2026. She described the lawmakers' visit as timely, particularly as the company and other stakeholders prepare for new legislation aimed at protecting local investment and encouraging domestic vehicle production. Oluleye noted that the automotive sector currently faces high operating costs, exchange-rate pressures, expensive borrowing, and policy inconsistencies.
Despite the challenges, Oluleye expressed optimism about the Federal Government's Nigeria First policy, which could promote backward integration and help rebuild local manufacturing. PAN has already begun working with academic institutions and professional organisations to identify locally available raw materials for vehicle-component manufacturing. The company is also exploring alternative energy sources to reduce production costs.
Oluleye emphasised that the automotive sector is a critical driver of industrialisation due to its extensive links with other sectors of the economy, including steel, aluminium, plastics, rubber, finance, ICT, logistics, engineering, research, and development. She urged the government to protect existing investments while creating incentives capable of attracting new investors, noting that passage of the proposed automotive legislation would enable Nigeria to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
Key points
- The Senate Committee on Industry has urged President Bola Ahmed Tinubu to boost support for local vehicle manufacturing to save foreign exchange, create jobs, and provide affordable mobility.
