Stakeholders in Nigeria’s automotive sector have thrown their weight behind the Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, while expressing growing concern over the industry’s stagnation due to inconsistent government policies and lack of infrastructure.
At the 45th Annual General Meeting of the Association of Automobile, Boatyards, Transport Equipment and Allied Employers of Nigeria (AABTEAEN), held at the Honda Manufacturing Nigeria Limited facility in Ota, Ogun State, leading industry players applauded Osanipin’s private sector background and pragmatic approach to leadership.
Otunba Michael Jaiyesimi, President of AABTEAEN and Deputy Managing Director of CFAO Motors, emphasized that Osanipin’s appointment has revived hope within the industry. However, he cautioned that good intentions alone are insufficient unless they are backed by inclusive policy implementation and sustainable economic strategies.
“We believe in his capacity. But he must carry stakeholders along if we truly want to move beyond endless policy formulations to actual execution,” Jaiyesimi said.
Jaiyesimi did not mince words when criticizing the federal government’s automotive policies since 2014, labeling them inconsistent and damaging. According to him, these policy reversals have discouraged long-term investments and led to the exit of major players from the local assembly scene.
He further described NADDC’s registration of 54 vehicle assembly plants as a “misstep,” noting that the number is unrealistically high compared to global standards. He revealed that nearly 60 percent of the registered assemblers have exited the market due to weak demand, poor infrastructure, and an unsupportive investment climate.
“You won’t find this many assemblers concentrated in any viable market globally. It has diluted quality and returns,” he warned.
Another major barrier, he noted, is the tariff structure, which he argued unfairly favors imported fully-built vehicles over locally assembled ones. “In many cases, importing vehicles is cheaper than assembling them here. This discourages investment in domestic production,” Jaiyesimi added.
He called on the federal government to review the tariff regime to protect and encourage local assemblers and component manufacturers. According to him, unless the playing field is leveled through supportive policies, Nigeria’s automotive ambitions will remain on paper.
Jaiyesimi also challenged the government’s 40 percent local content target, describing it as “unrealistic” given the state of Nigeria’s manufacturing sector. “Tires, batteries, glass, and even basic steel components are no longer produced locally. Without these, how can we meet such targets?” he queried.
He urged the government to focus on foundational infrastructure such as stable electricity and the attraction of Original Equipment Manufacturers (OEMs) who can set up local component plants.
“The government must first create an enabling environment that makes local production viable. Only then can we talk meaningfully about import substitution,” he said.
Despite the hurdles, stakeholders still believe Osanipin offers a credible chance to reset the sector’s trajectory. His leadership, backed by private sector experience, is viewed as a potential catalyst for reform—if matched with policy consistency and political will from Abuja.
Industry insiders are watching closely to see if Osanipin can overcome bureaucratic bottlenecks and push through critical reforms. His ability to engage stakeholders and champion practical policies could determine whether Nigeria’s auto industry remains stuck in low gear or accelerates toward growth.
In closing, Jaiyesimi urged the federal government and NADDC to prioritize dialogue with genuine sector players, not just paper-based entities, to co-create policies that serve national economic objectives.
The auto sector’s endorsement of Osanipin is both a vote of confidence and a call to action. For Nigeria’s automotive industry to thrive, it requires more than leadership—it demands strategic reforms, stable policies, and investments in local production infrastructure. Only then can the sector drive industrialization, create jobs, and reduce the country’s dependence on imported vehicles.