Automotive council drifting off course

The National Automotive Design and Development Council (NADDC), established by Act No. 83 of May 30, 2014, has a clear mandate to develop and implement a national automotive policy, recommend incentives for the growth of the automotive industry, and develop technology acquisition programmes for vehicle design, manufacture, and assembly. However, from all indications, the agency seems to be straying from its core objectives, opting instead to focus on revenue generation—an area where it clearly lacks expertise.

In a recent announcement, NADDC Director General Joseph Osanipin revealed plans to tap into Nigeria’s informal vehicle recycling market, projecting annual revenues of over N150 billion from 2026. He said in a statement that from January this year, vehicle owners would be paying between N8,740 and N34,345 as recycling fees. The idea, according to the agency, is to enable the recycling of vehicles that have reached their usage time.

“In developed countries, when you buy a new vehicle, during registration, you make a payment towards the disposal of that vehicle when it reaches the end of its life. When it gets to the end of its life, somebody has to be responsible for the disposal,” he said in a statement announcing the introduction of the fees.

According to him, Nigeria’s programme will follow a similar model, requiring a modest fee at the point of vehicle registration to fund environmentally sound disposal and recycling, a move he acknowledged may initially face public resistance. Osanipin noted that Nigeria already has a thriving informal second-hand auto parts market, commonly referred to as the Belgian parts market, driven largely by durability and quality concerns around new parts.

He said studies by the council showed that over 85 per cent of components from end-of-life vehicles remain reusable or recyclable, creating a strong foundation for a formal circular economy. “If someone has an alternative, instead of abandoning vehicles by the roadside, you can turn them in and still make something out of them,” he said.

He added that beyond revenue generation, the recycling ecosystem would create thousands of jobs across dismantling, refurbishing, logistics, and component resale segments. While the initiative may seem laudable, it raises concerns about the agency’s priorities and potential overlap with other government agencies.

The council also plans to introduce a mandatory pre-export certification for all used vehicles imported into Nigeria from 2026, a measure aimed at curbing the dumping of rusted and end-of-life vehicles into the country. This will, however, be paid by importers of such vehicles, it said.

The introduction of these fees is quite unnecessary and far away from the council’s core mandate of leading Nigeria to become a vehicle manufacturer. At a time when the world is talking about electric vehicles, it is sad that the core agency mandated to lead us there is just talking about revenue generation.

Again, the introduction of pre-export fees may encroach on the responsibilities of the Nigeria Customs Service (NCS), which already has a presence at various points of entry into the country. Moreover, the Vehicle Inspection Directorates can easily determine when a vehicle becomes a write-off with the right technology. One also asks whether the council has the required manpower to ensure the implementation of these policies.

We at Daily Trust believe the whole idea behind these policies is to further squeeze Nigerians, who are already being taxed left, right, and centre. In a country that lacks an efficient mass transit system, it is bordering on senselessness to introduce any fee that would further jack up the cost of transportation.

Daily Trust, therefore, advises the director general and his staff to concentrate on their core mandate of putting Nigeria on the proper road to becoming a vehicle manufacturer and not a dumping ground for all manners of imported vehicles.

Instead, it should encourage the private sector to formalize vehicle recycling activities, creating jobs and generating revenue for the government. NADDC should focus on its core mandate, aligning with the National Automotive Industry Development Plan (NAIDP) and building capacity for local vehicle design and manufacturing.

It is heart-warming to know that Nigerian engineers and students, as noted by the NADDC boss, have made notable progress in designing tricycles, buses, and electric campus shuttle buses, collaborating with universities and private-sector partners. NADDC should prioritize initiatives that promote local content and reduce Nigeria’s reliance on imported automotive parts.

The agency’s priority should be creating an enabling environment for Nigerian-made vehicles to thrive, rather than chasing revenue streams that may not be within its purview. By refocusing on its core mandate, NADDC can contribute to the growth of the automotive industry and Nigeria’s economic development.

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