The Governing Board of the National Automotive Design and Development Council (NADDC) has called for deeper local content, a transition from Semi-Knocked Down (SKD) to Complete Knocked Down (CKD) production and stronger government patronage of locally assembled vehicles
The call was made during the Board’s oversight inspection of the facilities of Lanre Shittu Motors, CIG Motors and Mikano Motors in Lagos recently
NADDC Board Chairman, Chief Emma Eneukwu, said the visit provided first-hand evidence of the technical capacity of Nigerian engineers and the potential of the domestic automotive industry to expand with appropriate government support
Describing the inspection at Lanre Shittu Motors as “fantastic,” Eneukwu said he was impressed by the scale of activities being carried out by Nigerian engineers
“With a little push, Nigeria will get there,” he said, stressing the need for stronger institutional support for local manufacturers
According to him, the inspection demonstrated that Nigerian engineers could undertake sophisticated automotive manufacturing activities when given the necessary training, technology and opportunities
Eneukwu said the government had an important role to play in creating conditions that would enable locally manufactured vehicles to compete with imported alternatives
He noted that transportation was central to economic development and commended the Federal Government’s stated commitment to developing Nigeria’s indigenous automotive industry
He said the NADDC Board would seek to bridge the gap between government and private-sector operators by presenting manufacturers’ concerns to relevant authorities
“That is why we are here We are here to encourage them and make sure we bridge the gap between the government and private sector. To push their demands and make sure they are actualised,” he said.
Eneukwu also expressed concern about government patronage of imported vehicles, arguing that public institutions should consider locally manufactured alternatives He said physical visits to assembly plants could help government officials better understand the capabilities of domestic manufacturers and address perceptions about the quality and durability of locally assembled vehicles.
He added that consumer confidence would improve when locally produced vehicles were seen as durable, affordable and supported by accessible spare parts and after-sales services
NADDC Director-General, Otumba Joseph Osanipin, said the inspection tour was intended to give the Board direct knowledge of manufacturers’ production capabilities, local-content levels, workforce capacity and operational challenges
At Lanre Shittu Motors, Managing Director Taiwo Shittu said the company was already incorporating locally sourced components, including seals, lubricants and rubber products from Kano and Ogun states
He said the company employed 326 Nigerians and only one expatriate, describing the development as evidence of the growing technical capacity of Nigerian workers
According to Shittu, the company has four production lanes and the capacity to produce six trucks and six buses, with 12 units in its production pipeline The facility occupies about 40,000 square metres.
He called for policies that would provide investment certainty and stronger incentives for local manufacturers, saying a stable policy environment would encourage additional foreign investors and international partners
Shittu disclosed that Lanre Shittu Motors had begun working with partners on electric vehicles and was exploring opportunities created by the Federal Government’s support for compressed natural gas (CNG) and electric mobility
He also highlighted the company’s locally assembled buses deployed at Murtala Muhammed International Airport, Lagos
On vehicle financing, Shittu said the company had arrangements with Access Bank, Stanbic IBTC, Wema Bank and government-backed CreditCorp to support customers seeking to acquire vehicles
Osanipin said the Federal Government’s Nigeria First Policy had entered its implementation phase following a circular signed by the Secretary to the Government of the Federation directing all Ministries, Departments and Agencies (MDAs) to procure Nigerian-made vehicles
He said the implementation guideline had been released and the final circular transmitted to MDAs, with the objective of expanding the market for local assemblers and making government procurement a driver of domestic automotive production
The NADDC DG also stressed the importance of after-sales support, noting that effective maintenance and availability of spare parts would help reduce vehicle downtime and strengthen customer confidence
He said the Council was also consulting manufacturers and other stakeholders on proposed automotive industry legislation before the bill is finalised
CIG Calls for Deeper Integration
At CIG Motors, Special Adviser to the Chairman on Government Relations, Brigadier-General Chukwuemeka Udaya (rtd), said the visit allowed the Board to verify the company’s operations and understand its challenges beyond periodic reports
Udaya said CIG Motors, which commenced operations in 2022, had invested heavily in young Nigerians and maintained partnerships with universities and Yaba College of Technology for industrial training
He disclosed that Nigerian graduates had also been sent to higher institutions in China for 18-month postgraduate training focused on engineering and vehicle-manufacturing technology
According to him, CIG Motors had partnered with the Federal Ministry of Humanitarian Affairs and Poverty Alleviation to train more than 25,000 young Nigerians in automobile maintenance and auto-electrical skills over the past two to three years
Udaya also advocated restrictions on older used imported vehicles, suggesting that imported used vehicles should be subject to an age limit of 10 years
NADDC Board Member, Bawo Omagbitse, said CIG Motors had contributed significantly to the automotive industry but needed to deepen backward integration
He called for greater local-content utilisation and investment in facilities such as paint shops, while urging the company to move progressively from SKD to CKD production
Omagbitse said achieving a 40 per cent local-content threshold would strengthen CIG’s role in the African automotive market He also encouraged partnerships with the Nigerian Association of Automotive Manufacturers (NAMA), Manufacturers Association of Nigeria (MAN), the Raw Materials Research and Development Council and other relevant institutions.
Mikano seeks protection for local industry
At Mikano Motors, National Operations Manager Syam Abdulkadir said the visit demonstrated the technical capabilities of Nigerian workers involved in vehicle assembly
He called for stronger local-content policies, arguing that domestic manufacturers faced difficulties competing when imported vehicles entered the market under more favourable import conditions
Abdulkadir also supported restrictions on older used vehicles and urged government to establish clear age limits for used vehicles entering Nigeria
He called for the speedy enactment of the NADDC industry law, describing it as important for protecting investments and creating a stable regulatory framework for automotive manufacturing
He warned that unrestricted vehicle imports, particularly where duties were reduced or removed, could undermine domestic manufacturing by allowing imported vehicles to compete at lower costs
The inspection gave the NADDC Board direct exposure to the operations, workforce and challenges of three major local assemblers, with the Council expected to use the findings to inform future policies aimed at increasing local production and strengthening Nigeria’s automotive manufacturing base