AUTO POLICY (NAIDP)

Policy · Transport

Policy date: 2025-01-01

A Strategy establishes goals for the automotive sector, promoting local manufacturing and electric vehicle adoption. It targets the entire transport value chain, mandating increased local content and integrating green energy solutions. This effort aims to position Nigeria as a major global automotive competitor.

What Is This Policy?

It is a 10-year strategic document approved by the Federal Executive Council (FEC). It sets the big goals, such as making sure 30% of locally made cars are electric and reaching 40% local content (parts made in Nigeria).

Who Does It Target?

The National Automotive Industry Development Plan (NAIDP) targets the entire value chain of the transportation sector, from the engineers building the cars to the citizens driving them. In 2026, the targeting has expanded to include "green energy" innovators.

What Does It Aim to Achieve?

The National Automotive Industry Development Plan (NAIDP), as updated for the 2023–2033 decade, is designed to move Nigeria from being a "dumping ground" for used cars to a global competitor in automotive manufacturing.

Key Features

  1. The 40/30 Production Targets The core of the 10-year plan revolves around two aggressive production benchmarks:
  • 40% Local Content: The government mandates that at least 40% of vehicle components (such as tires, batteries, filters, and plastics) must be manufactured in Nigeria. The goal is to reach 50% by 2030.
  • 30% Electric Vehicle (EV) Production: A significant portion of locally produced vehicles must be electric or solar-powered. This aligns Nigeria with the global green energy transition and reduces fuel dependency.
  1. The End-of-Life Vehicle (ELV) Policy (New for 2026) One of the most significant features rolling out in 2026 is the ELV recycling regulation.
  • Mandatory Recycling Fee: A fee is now paid at the point of vehicle registration to fund future safe disposal.
  • Circular Economy: The policy formalizes the "scrap" market, aiming to recycle over 85% of vehicle parts (ferrous metals, batteries, etc.), projected to generate over ₦150 billion annually.
  • Clearing the Roads: It provides a legal framework for removing abandoned and unroadworthy "junk" cars from Nigerian highways.
  1. Consumer Credit & Market Stimulation To solve the "affordability gap," the government has launched the S.C.A.L.E. (Securing Consumer Access for Local Enterprise) program.
  • 1 Million Beneficiaries: By the end of 2026, the goal is to have 1 million Nigerians purchasing locally assembled vehicles (including cars, tricycles, and motorcycles) through low-interest consumer credit.

Current Status

Rollout Stage: Legislative Consolidation & Reform (2025–2026 Phase) Coverage: applies nationwide Beneficiaries to Date: 1 Million Target via SCALE Funding: ₦20 Billion Renewed Hope Auto Credit Fund

Important Terms

Term 1-The "Knock-Down" Categories (Assembly Stages) The policy uses these terms to determine how much duty (tax) a manufacturer pays. The more work done in Nigeria, the lower the tax.

  • CBU (Completely Built Unit): A vehicle fully assembled abroad and imported. These face the highest tariffs (up to 70%) to discourage imports.
  • SKD (Semi-Knocked Down): A partially assembled vehicle (e.g., body and engine already joined) imported for final assembly.
  • CKD (Completely Knocked Down): The goal of the policy. All parts are imported as individual pieces and welded/assembled entirely in Nigeria. These kits enjoy 0% to 5% import duty.
  • DKD (Disassembled Knocked Down): A newer term for vehicles that are fully assembled abroad, then taken apart just enough to fit in a container and reassembled here. The 2026 reforms are tightening rules to prevent this from bypassing CKD taxes. Term 2- 4. Regulatory & Body Acronyms
  • NADDC: National Automotive Design and Development Council (The regulator).
  • CrediCorp (CREDICORP): The Nigerian Consumer Credit Corporation—the "engine" behind the 1 million vehicle credit target.
  • SON (Standards Organization of Nigeria): The body that ensures "Made-in-Nigeria" cars meet global safety and quality benchmarks.

Official Resources

Official Digital Platforms Main Website: www.naddc.gov.ng CNG Conversion Portal: https://naddc.gov.ng /cng-portal (Used for workshop accreditation and tracking conversions). Auto Credit Portal: credicorp.ng (The central portal for the 1 million vehicle credit scheme, managed in partnership with CrediCorp). Head Office Contact Details Address: No. 13 David Ejoor Street, Gudu District, P.M.B. 320, Garki, Abuja, Nigeria. Email: [email protected] Phone Lines: +234 9 291 3781 | +234 9 291 3783 Contact: +234 (0) 9461 7700 Link to document

Legal Framework

National Automotive Design and Development Council (NADDC) Act; Customs, Excise Tariffs etc. (Consolidation) Act; Industrial Development (Income Tax Relief) Act; Standards Organisation of Nigeria Act

Original source: Official Digital Platforms