Stakeholders seek auto economy agency with $5bn grant

Automotive stakeholders in Nigeria have called for increased infusion of local content in Nigeria’s automobile markets, saying this is key to driving industrialisation and reducing reliance on imported automobiles. The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin identified local content development as the cornerstone of Nigeria’s industrial growth and economic […]

Automotive stakeholders in Nigeria have called for increased infusion of local content in Nigeria’s automobile markets, saying this is key to driving industrialisation and reducing reliance on imported automobiles.

The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin identified local content development as the cornerstone of Nigeria’s industrial growth and economic sustainability.

They spoke at the second Nigeria Auto Industry Summit with the theme, “Nigeria First: Content as Catalyst for Automotive Economy”.

He spoke just as a university don, Professor Oscar Odibo called for an automotive economy agency with a $5bn seed grant to drive the envisaged auto economy.

Osanipin who spoke on the state of the automotive industry, said building local capacity in auto manufacturing is critical to job creation, economic diversification, and reducing capital flight.

“Local content development is the engine that will drive this transformation,” he said. “It encourages technology transfer, skills development, and ensures a resilient supply chain.”

He stressed the need for a unified national effort to overcome persistent challenges affecting the sector, such as inadequate access to finance for manufacturers, inconsistent power supply, and the weak industrial base for raw material processing.

The NADDC boss called on industry players, policymakers, and investors to renew their commitment to the “Nigeria First” agenda, a strategy aimed at prioritising homegrown solutions and local manufacturing capabilities.

“We need closer collaboration, increased investment in local capacity, support for innovation, and policies that protect and promote Nigerian-made vehicles,” Osanipin said.

He also highlighted the council’s ongoing collaboration with key stakeholders such as the Nigeria Automobile Manufacturers Association (NAMA) and the African Association of Automotive Manufacturers (AAAM) to create a more competitive and sustainable automotive industry in Nigeria.

Odibo of the Mass Communication Faculty and Media Studies, Delta State University in his keynote address recommended that the agency should be established with a seed grant of $5billion and a 25-year profit gestation period to ensure sustainability and investor confidence.

He said: “The agency, which should be headed by a Director General, will focus on unlocking the full economic potential of the automotive sector, attracting investors and delivering long-term value across the value chain.”

Making  a compelling case for a radical shift in Nigeria’s approach to auto manufacturing, Prof. Odibo called for a sweeping local content agenda anchored on the Nigerian Content Plan (NCP), urging Nigerian Original Equipment Manufacturers (OEMs) to demonstrate commitment to sourcing a substantial percentage of their raw materials, services, and workforce locally.

He emphasized that this would not only stimulate the domestic economy but also foster technological innovation, value chain integration, and sustainable job creation.

Similarly, the Standards Organisation of Nigeria (SON) pledged to intensify its fight against the influx of substandard vehicle parts in the country, while reaffirming support for local automotive manufacturers.

Director General of SON, Dr. Ifeanyi Chukwunonso Okeke, said the agency is committed to strengthening quality assurance and promoting local content in Nigeria’s automotive sector. Okeke was represented by Engr. Sodiq Abayomi Danmola, Head of SON Mechanical Testing Laboratory.

Danmola warned that fake and substandard vehicle components pose serious risks to road safety and undermine local manufacturing. He cited Nigeria’s porous borders as a major challenge, stressing the need for stronger enforcement and inter-agency cooperation.