Auto Industry Bill 2026: Senate, NADDC Explore Path to Boost Local Production

The Senate Committee on Industry, in collaboration with the National Automotive Design and Development Council (NADDC), has undertaken a three-day oversight tour of key automotive and industrial facilities across Kano and Kaduna states as part of efforts to strengthen local vehicle production and deepen industrial development in Nigeria.

The tour covered the NADDC Automotive Training and CNG Conversion Centre in Kano, the Council’s Zaria office, PAN Nigeria Limited and Dangote industrial facilities in Kaduna.

The exercise provided the Senate Committee and NADDC with an opportunity to assess existing infrastructure, technical skills, industrial capacity and investment opportunities that could support the expansion of Nigeria’s automotive industry.

Speaking on the outcome of the exercise, Joseph Oluwemimo Osanipin, director -general of the NADDC said the engagement reinforced the view that Nigeria possesses the capacity to build a stronger automotive industry but requires the right policy environment to translate its potential into sustainable industrial growth.

According to the representative, effective legislation, increased patronage of locally manufactured products, affordable vehicle financing and sustained investment are critical to enabling automotive manufacturers to expand production and improve local value addition.

The representative stressed that Nigeria must move beyond the existence of industrial facilities and available technical expertise to create an environment that allows manufacturers to operate efficiently, increase output and compete effectively.

The Nigeria First Policy was also identified as an important framework for promoting local production and encouraging greater patronage of Nigerian-made goods.
In addition, the proposed National Automotive Industry Bill 2026 was highlighted as a potential instrument for strengthening the policy and regulatory framework governing the sector, providing greater predictability for manufacturers and investors, and supporting long-term automotive development.

The bill is expected to provide an opportunity to address critical industry concerns through a more structured legislative framework that encourages investment, local manufacturing and sustainable growth.

The oversight tour also underscored the importance of collaboration between the National Assembly and NADDC in identifying industry challenges, evaluating existing capacities and developing policies capable of accelerating Nigeria’s automotive development.

The appreciation was extended to the Chairman of the Senate Committee on Industry, Senator Francis Adenigba Fadahunsi, and members of the committee for their constructive engagement and commitment to the development of the country’s automotive sector.

The collaboration is expected to support continued dialogue between policymakers, regulators and industry stakeholders on measures to improve the competitiveness and sustainability of the automotive industry.
As Nigeria seeks to expand its domestic manufacturing base, stakeholders maintain that a combination of supportive legislation, investment in technical skills, stronger local supply chains and accessible financing will be essential to unlocking the full potential of the automotive sector.

The three-day tour therefore provided an opportunity to examine existing industrial capabilities and reinforce the need for coordinated action to transform Nigeria’s automotive potential into increased local production, employment opportunities and broader economic value.