NADDC Pushes For Higher Local Content In Nigeria’s Auto Parts Industry

The National Automotive Design and Development Council has renewed its push for increased local content in Nigeria’s auto parts production. The Council said stronger collaboration among lawmakers, manufacturers and regulators is critical to unlocking growth in the sector.

Speaking in Abuja at a Senate Committee on Industries roundtable, NADDC Director General Oluwemimo Joseph Osanipin said the industry needs coordinated policy support to attract new investment. He noted that the automotive sector drives economic activity because it is linked to agriculture, manufacturing and services.

Osanipin said the Council wants senators to understand the challenges facing manufacturers. He added that many of the issues can be addressed through legislation. He explained that the goal is to create a policy pathway that supports innovation, investment and industrial growth.

He said manufacturers must improve their standards to compete and that NADDC is setting up test centres to strengthen certification. He highlighted the high cost of production, expensive loan rates and costly imported components as major pressures on local manufacturers.

Osanipin said these challenges make it difficult for producers to scale and remain competitive. He stressed that the meeting aims to encourage manufacturers and ensure that products entering the Nigerian market meet minimum standards.

Senator Francis A. Padahunsi said the forum seeks to close the gap between the industry’s potential and its current state. He called for a review of the implementation of the Nigerian Automotive Industry Development Plan and urged stakeholders to push for better local content and backward integration.

Stakeholders at the meeting agreed that Nigeria needs a more supportive environment to promote local production and reduce reliance on imported vehicle parts.