Automotive Policy Must Become Law to Unlock Investment, Experts Warn

Juliet Akoje in Abuja

The Director-General of the National Automotive Design and Development Council, Joseph Osanipin, has called for Nigeria’s automotive policy to be formally enacted into law.

He stressed that the industry requires legal backing to achieve sustainable progress.

He warned that investors were unlikely to fully commit resources unless the regulatory framework governing the sector was supported by legislation.

Osanipin made the remarks in Abuja while addressing members of the House of Representatives Press Corps at a capacity-building workshop yesterday.

The training session was organised by the council in partnership with the House Committee on Media and Public Affairs under the theme, “Strengthening Sectoral Policy Communication and Legislative Reporting on Nigeria’s Automotive Industry Development.”

According to the council’s chief executive, the Nigeria Automotive Industry Development Plan already provides strategic guidance for the sector, but long-term industrial expansion depends on firm legal certainty.

He explained that companies considering major investments in vehicle assembly and component manufacturing require assurance that incentives and policy protections would remain in place beyond changing government administrations.

Osanipin revealed that the council intends to deepen engagement with lawmakers at the National Assembly in order to strengthen the legal framework supporting automotive development.

He emphasised that globally, the automotive sector was among the most capital-intensive industries and requires consistent policies over time before investors are willing to deploy significant funds.

He added that legislative backing would stabilise the industry, boost local manufacturing and fast-track Nigeria’s industrialisation drive.

Using the forum, he also urged journalists reporting on legislative and economic matters to interpret policies within their broader industrial context, especially those aimed at safeguarding domestic production.

Drawing parallels with global trade patterns, Osanipin noted that many countries routinely introduce protective measures to strengthen local industries and expand technological capacity.

Such approaches, he said, support employment creation, technology transfer and long-term economic resilience.

He further disclosed that Nigeria has already recorded progress in domestic automotive innovation, including the local design and production of tricycles built with indigenous materials, as well as increasing capacity in compressed natural gas vehicle assembly.

The council, he added, has trained more than 15,000 technicians nationwide, a move intended to strengthen after-sales services and ensure technical sustainability across the industry.

Nigeria currently spends trillions of naira each year importing vehicles and spare parts, a trend the council hopes to reverse through a localisation strategy focused on producing selected automotive components domestically.

Osanipin explained that while no country produces every vehicle part, Nigeria has identified components that could be manufactured locally and was collaborating with assemblers and producers to scale up domestic capacity.

He also revealed that international automakers, including Toyota, Volkswagen, and Ford have inspected Nigerian facilities and expressed surprise at the level of infrastructure available in the country.

According to him, some of Nigeria’s production equipment ranks among the most advanced on the African continent, although this progress receives little public attention.

The council’s head linked automotive development to broader economic goals, noting that the sector promotes industrial diversification, preserves foreign exchange and positions Nigeria to benefit from continental trade arrangements through stronger local content.

Osanipin stressed that a better understanding of sectoral policies among legislative reporters would improve public discourse and support evidence-based policy decisions.

He expressed optimism that stronger communication and more informed legislative reporting would help expand Nigeria’s automotive presence across Africa.

The Chairman of the House Committee on Media and Public Affairs, Akintunde Rotimi, also emphasised the importance of specialised knowledge for legislative reporters, stating that well-informed media coverage was critical for translating industrial policies into public understanding and national development outcomes.

He said the engagement reflects a deliberate strategy by the House of Representatives to improve professionalism within its parliamentary media system and ensure reporting keeps pace with increasingly complex policy environments.

Rotimi conveyed goodwill from the Speaker of the House, Tajudeen Abbas, and members of the 10th Assembly, describing the programme as part of broader institutional reforms designed to enhance policy communication and democratic accountability.

According to him, legislative duties are not complete with lawmaking or oversight alone; they are fulfilled only when citizens clearly understand the resulting policies and reforms.

He noted that the press corps plays a central role in translating legislative intentions, oversight findings and sector frameworks into public knowledge that strengthens transparency and trust.

The lawmaker explained that the House has introduced a structured and ongoing capacity-development programme for its media teams, designed to be progressive, sector-focused and aligned with national priorities.

He described the automotive industry training as part of this reform process, stressing that the sector lies at the intersection of industrialisation, local content expansion, employment generation, technology transfer and economic diversification.

Rotimi said the focus aligns with the House’s legislative agenda on economic growth, which prioritises diversification away from oil dependence, investor-friendly reforms and sustainable industrial expansion.

He commended the automotive council for providing technical expertise and institutional leadership, noting that its work in policy design, regulation, innovation support and promotion of local manufacturing contributes directly to Nigeria’s industrial development goals.

According to him, the primary objective of the training was to improve the depth, accuracy and contextual understanding of parliamentary reporting on the automotive sector while strengthening public confidence in policy initiatives.

He explained that oversight responsibilities also include ensuring that legislative media teams understand sector mandates and policy directions so they can better support collaboration between public institutions and citizens.

Rotimi urged participants to engage actively with facilitators, scrutinise policy frameworks, and build expertise that would strengthen their ongoing interactions with government agencies.

He stressed that institutional backing for professional excellence remains a priority for the House, citing recent welfare measures such as facilitating health-insurance coverage for members of the press corps.

He also encouraged both public institutions and private automotive stakeholders to support journalists through corporate social responsibility initiatives that improve their mobility and operational efficiency.

Rotimi praised the automotive council for initiating the engagement and described the partnership as one that would strengthen policy narratives and contribute meaningfully to national development.

He reaffirmed the House’s commitment to programmes that enhance professional capacity, improve policy communication and support reforms across key economic sectors.

The Chairman of the House of Representatives Press Corps, Gboyega Onadiran, called for stronger national commitment to domestic automotive production, warning that Nigeria’s reliance on imported vehicles continues to strain the economy and weaken industrial growth.

He described the present period as a decisive moment for Nigeria’s economy, noting that rising transportation, logistics, food distribution and production costs have been worsened by exchange-rate volatility and heavy dependence on imported vehicles and spare parts.

According to him, local automotive development is no longer just a policy ambition but an economic necessity.

He also highlighted indigenous manufacturers such as Innoson Vehicle Manufacturing for producing vehicles tailored to Nigerian conditions.