Auto Summit Participants Urge FG to Sign NAIDP into Law, Can Create 5m Jobs

Bennett Oghifo

The federal government has been urged to give legal backing the country’s Auto Industry Development Plan (NAIDP), because it is capable to creating more than five million jobs, among other benefits.

This was one of the resolutions reached at the second edition of the Nigeria Auto Industry Summit (NAISU), a developmental advocacy programme organised by the Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC), effectively built on the success of its inaugural edition and offered a more dynamic and solution-focused experience.

A convergence point for the entire automotive ecosystem, the 2025 summit, which took place in Lagos recently, brought together the nation’s leading industry stakeholders and major regulators, including NADDC, the Federal Road Safety Corps (FRSC), the Standards Organization of Nigeria (SON) and Nigeria Automobile Manufacturers Association (NAMA).

Motivated by the renewed government interest in Nigerian content through the recently proclaimed Nigeria First Policy, as well as the wave of new investments in local assembly and parts production in Nigeria, this year’s NAISU, which was themed: “Nigeria First: Content as Catalyst for Automotive Economy”, featured relevant presentations aimed at shaping the industry’s policies, promoting local manufacturing, and tackling the structural challenges facing Nigeria’s automotive ecosystem.

A communique issued at the end of the Summit observed that, “The automotive industry, despite its huge potential, does not contribute substantially to the Nigerian economy.”

Adding that “Participants expressed displeasure over the non-passage of the NAIDP 13 years after,” and advocated for immediate passage of the Bill into law to attract investment into the auto economy.

The summit, therefore, called on President Bola Tinubu to create National Automotive Economy Agency with a startup fund of $5 billion; and that the agency, which should be headed by a Director-General, who must be responsible for value chain increase.

The summit also agreed that the proclamation of the Nigeria First Policy creates opportunities for automotive players and investors to expand and ramp up their activities in manufacturing and assembling lines. 

“Operationalising the Nigeria First Policy, we must ensure that locally produced contents meet global standards. We must ensure that our vehicles and parts are safe, durable and environmentally compliant.

“The NADDC should list out parts that make up the 40 per cent local content required from the local auto manufacturers and assemblers.

“The Nigerian OEMs (original equipment manufacturers) should develop and submit a Nigerian content plan and commit to sourcing substantial portions of auto manufacturing materials, services and labour in Nigeria.

“The Nigerian auto companies must provide information to auto journalists who remain the watchdogs of the industry.

“Women should be encouraged to get involved in the automotive industry to promote inclusivity and break gender barrier, while encouraging those who are already making waves in the industry

“Auto players should agree to be called automotive investors. Stakeholders should utilise the Nigeria First Policy in order to create jobs, ensure value retention and capital flight reduction.

“Nigeria First Policy should reduce dependence on imported goods, encourage innovation and skills development. Efforts must be intensified towards addressing the porosity of our borders and tackling smuggling in order to protect local players who have invested substantially in the automotive value chain.

“Nigerian government at all levels must enforce Nigeria First Policy in Public Procurement.”