The Federal Government plans to increase the share of Nigeria’s vehicle demand met by local assemblers from less than eight per cent to 70 per cent as part of efforts to boost domestic manufacturing, create jobs and reduce dependence on imported vehicles and components.
The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, announced the target on Friday in Abuja during a press conference on the implementation of the Nigeria First Policy in the automotive sector.
Osanipin said the plan would be implemented in phases, with local production expected to rise from less than eight per cent to 20 per cent, then 40 per cent, before reaching 70 per cent of domestic demand.
He said Nigeria’s vehicle assembly capacity was estimated at between 400,000 and 500,000 units annually, with facilities operated by manufacturers including PAN Nigeria, Innoson Vehicle Manufacturing and CIG Motors.
According to him, some manufacturers have the capacity to produce tens of thousands of vehicles annually but require increased patronage to expand production and reduce costs.
Osanipin said assemblers would be expected to move from semi-knocked-down (SKD) assembly to completely knocked-down (CKD) production, which involves greater local input and component manufacturing.
He added that the NADDC would monitor manufacturers’ investments, employment figures, production growth and delivery standards to ensure that government patronage translated into wider benefits for the automotive industry.
The NADDC chief said local component manufacturers stood to benefit significantly from the policy because vehicles require maintenance and replacement parts throughout their lifespan.
He stressed the need for Nigeria to strengthen local content in order to meet the rules of origin under the African Continental Free Trade Area (AfCFTA), which require 40 per cent local components for preferential market access.
Osanipin said increased production volumes could help lower vehicle prices, making locally assembled vehicles more affordable for Nigerians.
He also urged vehicle assemblers to provide reliable after-sales services, reinvest in their businesses and employ more Nigerians as production expands.
The government’s target forms part of its broader Nigeria First Policy, which seeks to prioritise locally made goods and services in public procurement while supporting domestic industries and reducing reliance on imports.
