The National Assembly (NASS) has pledged to fast-track the proposed National Automotive Industry Bill 2026 to protect local vehicle manufacturers and reduce Nigeria’s dependence on imported used vehicles.
Chairman of the Senate Committee on Industry, Senator Francis Fadahunsi, gave the assurance during an inspection of PAN Nigeria Limited’s facilities in Kaduna on Wednesday, alongside officials of the National Automotive Design and Development Council (NADDC).
Fadahunsi said Nigeria could no longer afford to serve as a dumping ground for foreign-used vehicles, popularly known as Tokunbo, arguing that continued importation was putting pressure on the country’s foreign exchange reserves and undermining domestic manufacturing.
“Nigeria has become a dumping ground. So we have to reject it,” he said.
Fadahunsi Calls For Support For Local Manufacturers
The senator, a retired Customs officer, said his experience had exposed the economic costs associated with importing large numbers of used vehicles instead of supporting local production.
He urged the Federal Government to encourage Nigerians to patronise locally manufactured vehicles, noting that Nigerian engineers had demonstrated the capacity to produce vehicles and tricycles suited to the country’s needs.
According to NASS, the committee’s inspection showed that locally produced alternatives could serve rural communities and other users who depend on imported transportation equipment.
Fadahunsi described PAN Nigeria’s facility as an important industrial asset that could contribute significantly to job creation, economic growth and access to affordable transportation if its production capacity were fully utilised.
He appealed to President Bola Tinubu to strengthen government support for the automotive sector, warning that continued vehicle imports were contributing to the depletion of Nigeria’s foreign reserves.
“Mr President, you should know the gravity of this, the drain on our foreign reserve caused by this particular product,” he said.
PAN Could Employ Over 3,000 Workers
Fadahunsi said PAN Nigeria’s facility occupies nearly 300,000 square metres and could employ more than 3,000 people if it operates at full capacity.
He also disclosed that the company’s training facilities had produced about 12,000 artisans nationwide, including mechanics, forklift operators and other technical personnel.
The figures, he said, underscored the potential contribution of the automotive industry to employment and technical skills development.
PAN Seeks Urgent Passage Of Automotive Bill
Managing Director of PAN Nigeria Limited, Taiwo Oluleye, called on the National Assembly to urgently pass the proposed National Automotive Industry Bill 2026, arguing that local manufacturers needed stronger legislative protection to survive and attract fresh investments.
Oluleye said PAN, established in 1972 and commencing operations in 1975, had an installed annual production capacity of 90,000 vehicles.
However, she attributed the company’s production challenges to high operating costs, foreign exchange difficulties, expensive borrowing and inconsistent government policies.
She said PAN had expanded beyond a single-brand assembly plant to produce multiple vehicle categories, including sport utility vehicles, sedans, buses and pickup trucks. Some of its buses, she added, had been converted into ambulances.
Oluleye said local content in the industry had fallen from about 40 per cent when manufacturers operated under a more supportive policy environment to below four per cent.
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She argued that the proposed legislation would help protect investments in assembly plants and address what she described as an imbalance between companies investing in local production and businesses importing fully built vehicles.
“We appeal to you by this visit that you review and legislate. The legislation of this policy will protect investment and develop local production as opposed to importation of vehicles,” she said.
Automotive Industry Seen As Industrialisation Opportunity
Oluleye described the automotive sector as a major opportunity for Nigeria’s industrial development, noting its connections with industries such as steel, aluminium, plastics, rubber, finance, information technology, logistics and engineering.
She said stronger local production could help Nigeria benefit from opportunities under the African Continental Free Trade Area and potentially become a vehicle supplier to other African countries.
However, she maintained that achieving this would require consistent policies, improved local content and an enabling environment for manufacturers.
NADDC Says Nigeria Has Production Capacity
Director-General of NADDC, Oluwemimo Joseph Osanipin, said the inspection demonstrated that Nigeria had the capacity to meet a substantial portion of domestic vehicle demand through local assembly.
“What we have seen here is evidence that we have the capacity,” he said.
Osanipin said PAN’s installed capacity of 90,000 vehicles annually, combined with facilities operated by other manufacturers, could help meet local demand if the plants operated closer to their full potential.
He added that NADDC was working to address challenges facing the sector, including legislative gaps, limited patronage and access to credit.
According to him, the Federal Government’s Nigeria First policy provides an opportunity to strengthen domestic manufacturing, while collaboration with the Credit Corporation is expected to expand vehicle financing beyond cars and motorcycles.
The committee’s delegation also visited Dangote Peugeot Automobiles Nigeria, where various vehicles are assembled.
The proposed National Automotive Industry Bill 2026 is expected to provide a stronger framework for developing local manufacturing, protecting investments and reducing the country’s dependence on imported vehicles.
