December 19, (THEWILL) — The Federal Government has indicated that the long-awaited National Auto Industry Development Policy (NAIDP) is expected to be implemented by the second quarter of 2026, as plans intensify to restructure Nigeria’s automotive sector and gradually phase out the importation of used vehicles, commonly known as tokunbo.
This development follows the recent approval of the Nigeria Industrial Policy (NIP) by the Federal Executive Council (FEC). With the approval, the NIP has become a formal policy document guiding Nigeria’s industrial development strategy, although it is yet to be enacted into law by the National Assembly.
The Federal Government is also considering stricter measures to regulate the importation and use of used vehicles in the country, in line with efforts to promote local vehicle manufacturing, improve road safety, and enhance environmental sustainability.
The Minister of State for Industry, Senator John Enoh, disclosed this at the 18th Nigeria Auto Journalists Association (NAJA) International Auto Awards held recently at the Oriental Hotel, Victoria Island, Lagos. According to him, the next major step is the passage of the auto policy into law.
Speaking through the Director-General of the National Automotive Design and Development Council (NADDC), Otunba Oluwemimo Joseph Osanipin, the Minister said, “The Nigeria Industrial Policy has been approved by the Federal Executive Council, and it will guide Nigeria’s industrial development. The next step is the enactment of the Auto Policy into law. These are part of the deliberate actions we are taking to ensure that the automotive sector receives the priority it deserves.”
Osanipin, in his own remarks, confirmed that the NAIDP Bill is close to legislative approval, noting that NADDC is vigorously engaging the National Assembly to accelerate its enactment.
He assured stakeholders that the Council remains committed to policies and programmes that will ensure only high-quality vehicles are allowed into Nigeria, while strengthening local manufacturing capacity.
“We remain committed to policies and programmes that strengthen local manufacturing in Nigeria. By the second quarter of 2026, one of our key targets is the enactment of the Auto Policy. Any moment from now, we will be pushing it to the National Assembly for passage, and we will also require stakeholders’ participation during the public hearing”, he said.
Osanipin further revealed that NADDC will soon begin the gradual phase-out of used vehicles in Nigeria as part of efforts to deepen local automotive production.
He disclosed that the Council launched Nigeria’s End-of-Life Vehicle (ELV) Recycling Regulation in March 2025, aimed at creating a circular economy, boosting job creation, enhancing environmental sustainability, and improving road safety through the formal dismantling, recycling, and repurposing of old vehicles.
Commending NAJA for its consistency in promoting excellence within the industry, Osanipin described the awards as a key driver of job creation and stakeholder engagement.
“NADDC is pleased to associate with this award initiative because it serves as an invaluable meeting point for industry stakeholders and the media,” he said.
Earlier, in his welcome address, the NAJA Chairman, Mr Theodore Opara, described the awards as a benchmark for industry performance, noting that resilience has become a defining attribute of the automotive industry amid global supply chain disruptions, the energy transition, and ongoing policy reforms.
Opara explained that award recipients emerged through a transparent and rigorous assessment process anchored on professionalism, industry relevance, and measurable impact.
He added that despite prevailing economic challenges, automotive industry players in Nigeria have continued to demonstrate remarkable resilience, creativity, and strategic adaptation.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
