The National Assembly and the National Automotive Design and Development Council (NADDC) have vowed to bolster local vehicle manufacturers with legislative and policy support. This pledge follows an oversight visit by the House Committee on Industry to vehicle assembly plants in Lagos, where the committee explored the challenges facing Nigeria’s automotive sector. The visit highlighted the pressing need for affordable financing and local manufacturing incentives to help the industry thrive.
During the visit, House Committee Chairman Dolapo Badru acknowledged the difficulties faced by local manufacturers, such as high interest rates and soaring foreign exchange costs. “The cost of funding is very high, and manufacturers need assistance to survive,” Badru said.
He emphasized the importance of affordable financing options, urging car manufacturers to introduce installment payment plans similar to those in other countries. “In other parts of the world, people don’t pay upfront for cars or houses—they pay in installments. This is a process local manufacturers should adopt,” he explained.
Badru also advocated for continued support from the National Assembly, with a focus on enabling legislation that can help local manufacturers compete more effectively in the market. “We need to foster a free market,” Badru remarked, emphasizing that consumer confidence in locally manufactured cars was key. “If I’m guaranteed that the car I buy today will last for 10-15 years, why would I go for an imported one?”
Joseph Osanipin, Director-General of the NADDC, presented the challenges local manufacturers face and their achievements during the visit. He described the meeting as a “handshake” between the executive and legislative arms of government, aimed at resolving these issues. “We need more of these handshakes to truly understand each other’s challenges in the auto industry,” Osanipin said.
He also stressed the importance of local parts manufacturing for creating jobs and boosting economic growth. “To create more jobs, we must start producing more of these components domestically,” Osanipin added, noting that companies like Mikano are already making significant strides in this area.
The committee toured major automotive plants, including CIG Motors and Dangote Sinotruck West Africa Limited. These plants were recognized for their progress in local assembly and their commitment to environmental efficiency. The committee expressed its dedication to reducing Nigeria’s reliance on imported vehicles while working to enhance local automotive capabilities.
At a separate briefing, Jubril Arogundade, Executive Director of CIG Motors, discussed the company’s efforts to make locally assembled GAC vehicles more accessible to Nigerians. Arogundade called for federal policies that would help local manufacturers compete on pricing. “The government should provide policies that create more incentives for local manufacturers,” he urged.
Arogundade also highlighted the company’s financing initiatives, including a pay-in-instalments scheme, which allows Nigerians to purchase cars through manageable payments. “We’ve partnered with 12 banks to make this happen,” Arogundade explained. However, he also noted that high interest rates remain a significant barrier. “With interest rates of 33% to 35%, if we had programs offering 80% funding, I could sell my entire stock in a month,” he said.
This continued push from the National Assembly and NADDC offers a glimmer of hope for local manufacturers, as they strive to overcome financial challenges and bring affordable, high-quality vehicles to the Nigerian market.
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