CENTRE FOR AUTOMOTIVE DESIGN AND DEVELOPMENT ACT

Act · Transport

An Act establishes the National Automotive Design and Development Council to promote Nigeria's automotive industry through vehicle assembly and component manufacturing. It targets vehicle assembly plants, automotive component suppliers, and government bodies involved in industry. This aims to create jobs and reduce dependence on imported vehicles.

CENTRE FOR AUTOMOTIVE DESIGN AND DEVELOPMENT ACT

What Is This Policy?

An Act establishing the National Automotive Design and Development Council (NADDC) to promote the development of Nigeria's automotive industry, including vehicle assembly, component manufacturing, and design.

Who Does It Target?

Vehicle assembly plants and manufacturers Automotive component suppliers The National Automotive Council (NAC) Federal Ministry of Industry, Trade and Investment

What Does It Aim to Achieve?

Develop a sustainable Nigerian automotive industry that manufactures or assembles vehicles domestically, creates employment, and reduces Nigeria's dependence on fully imported vehicles.

Key Features

Industry Development: Coordinates the development of the Nigerian automotive value chain from assembly to components. Policy Framework: Advises government on automotive industry policy including the National Automotive Policy. Standards: Sets standards for locally assembled vehicles ensuring quality and safety. Incentive Administration: Manages incentives for automotive manufacturers including import duty concessions on CKD parts.

Current Status

Rollout Stage: Active — multiple vehicle assembly plants now operational in Nigeria Coverage: Nationwide automotive manufacturing sector Beneficiaries: Consumers; automotive workers; industrial development Funding: Federal Government; industry contributions

How to Access

Vehicle manufacturers apply for NADDC incentives and approval Importers of CKD kits must comply with NADDC requirements for duty concessions Application method: Engage NADDC at https://www.naddc.gov.ng

Important Terms

Vehicles assembled in Nigeria must meet NAFDAC and SON standards Automotive incentives are conditional on meeting local content targets Fully built-up imported vehicles attract higher duties than CKD assemblies

Official Resources

Website: https://www.naddc.gov.ng Contact: National Automotive Design and Development Council (NADDC)

Legal Framework

Enacted under the legislative powers of the National Assembly as the National Automotive Design and Development Council (NADDC) Act. Operates alongside the National Automotive Policy, the Nigerian Industrial Policy, the Companies Income Tax Act (CITA) incentives for automotive assembly, and the Nigerian Export Promotion Council Act. Aligns with the ECOWAS Trade Liberalisation Scheme and the AfCFTA provisions on automotive value chains.

Original source: Read the source