Nigeria's NADDC Targets 70% Local Vehicle Production

The Nigerian government plans to increase the share of local vehicle production from less than 8% to 70% to boost domestic manufacturing, create jobs, and reduce reliance on imported vehicles and parts. Joseph Osanipin, the director-general of the National Automotive Design and Development Council (NADDC), announced this target during a press conference in Abuja.

The plan will be implemented in phases, starting with an increase to 20%, then 40%, and finally 70% of domestic demand. Nigeria's assembly capacity is estimated at 400,000 to 500,000 units annually, with manufacturers like PAN Nigeria, Innoson Vehicle Manufacturing, and CIG Motors.

The policy encourages manufacturers to transition from semi-knocked-down (SKD) to completely knocked-down (CKD) production, requiring more local input. Adebowale Adedokun, director-general of the Bureau of Public Procurement, stated that federal entities must prioritize Nigerian-assembled vehicles, which has already led to price reductions.

The policy includes monitoring and reporting requirements for federal ministries and potential sanctions for manufacturers who breach guidelines.