Nigeria’s car market is about to get a new rulebook. The National Automotive Industry Bill, a replacement for the 2014 law that set up the National Automotive Design and Development Council (NADDC), is expected in clean draft form by mid or late November 2026, according to a September 2026 report in Daily Trust quoting NADDC Director-General Joseph Osanipin. At the same time, the federal government’s Nigeria First policy is already changing how government buys vehicles. For anyone thinking about new car prices in Nigeria, local assembly or the tokunbo market, here is what is actually on the table, and what it may mean for your wallet.
What is the National Automotive Industry Bill?
Osanipin told Daily Trust that the 2014 Act establishing NADDC is no longer adequate for an industry going through major technological change. He said it does not sufficiently cover CNG, electric vehicles or other new automotive technologies. The new bill is being built through consultation with manufacturers, industry experts, regulators and government agencies. After a Lagos stakeholder engagement, NADDC plans to consult other agencies covering standards, policing, customs and finance before the bill goes to the National Assembly.
According to the same report, the bill is meant to cover:
- Local content development and patronage of locally produced automotive products
- Local vehicle assembly
- Enforcement of industry regulations
- Consumer protection
- A legal framework for the whole automotive industry, beyond NADDC’s current mandate
Proposed changes include turning NADDC into a National Automotive Design and Development Commission with stronger regulatory and enforcement powers, and legally protecting the incentives under the Nigerian Automotive Industry Development Plan. The aim is to move the sector from simple assembly towards a full industrial value chain: components, vehicle electrification and regional market integration.
What the industry wants changed
The Nigeria Automobile Manufacturers Association (NAMA) supports a strong automotive law but wants substantial amendments. Its chairman, Bawo Omagbitse, said the draft is stronger as a regulatory framework than as an industrialisation law. NAMA’s proposals, as reported, include a predictable framework for automotive tariffs, investment protection, an Automotive Development Fund, government procurement of locally made vehicles, and affordable vehicle financing.
For buyers, the last item matters most. Cars are expensive in Nigeria partly because credit is expensive. If a financing framework ever makes it into law, it could matter more to your monthly instalment than any tariff tweak. Until then, compare any car loan in Nigeria carefully on total repayment, not just the monthly figure.
Nigeria First: the procurement side
While the bill is still a draft, the Nigeria First policy is already live. Reports from 9 October 2026 (Voice of Nigeria and Freedom Online) say federal agencies must now prioritise locally assembled vehicles where available. Key points from those reports:
- Bureau of Public Procurement (BPP) Director-General Adebowale Adedokun said one locally assembled model reportedly fell from about N72 million to N35 million in a procurement exercise. The model was not named.
- The BPP said it bought two units after the policy took effect, and that local manufacturers are offering extra discounts for bulk purchases.
- Osanipin disclosed a target of three million vehicles procured annually, with local assemblers expected to produce about 80 per cent under the policy.
- Assemblers are expected to move from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) assembly, which needs more local content.
- Companies that fail to meet procurement guidelines could face sanctions, including removal from government business.
Osanipin linked the push to the African Continental Free Trade Area (AfCFTA), which sets a 40 per cent rule of origin. Adedokun was blunt about quality: “The era of assemblers without proper maintenance structures is over.”
Will this make your next car cheaper?
Realistically, not immediately. The N72 million to N35 million example is a government bulk purchase of an unnamed model, not a showroom price cut for private buyers. Bulk discounts do not automatically flow to individuals. And the three-million-unit figure is a target, not a delivered result. Treat both as direction of travel, not a promise.
That said, there are plausible upsides for ordinary buyers over time:
- More competition among local assemblers. Government patronage can give assemblers the volume to lower unit costs, which may eventually show up in locally assembled cars in Nigeria.
- Better spare parts. The Automotive Local Component Manufacturers Association of Nigeria (ALCMAN) said it is developing a digital platform with traceability to help buyers verify genuine parts suppliers. Fake parts are a major cost for owners, so this would be welcome.
- After-sales networks. NADDC wants assemblers to build nationwide service networks. Nigeria has roughly 15 to 16 people per vehicle, against about 6 to 7 in South Africa, according to Osanipin, so the room to grow is large.
Tokunbo buyers: what to watch
None of the reports reviewed for this article mention new curbs on used-vehicle imports in the bill, so there is no confirmed change to tokunbo cars for sale or to the import duty on cars in Nigeria from this draft. Still, NAMA is asking for a predictable tariff framework, and any tariff change would hit the used-import market quickly. If you are planning a tokunbo purchase, check the current Nigeria Customs Service rates at the time of buying rather than relying on old figures. We covered the latest duty rates in our tokunbo import duty guide.
CNG and EVs finally get legal cover
One underrated point: the current law was written before CNG conversion and electric vehicles became mainstream topics. Osanipin said the 2014 Act does not adequately cover them. Bringing both into the main automotive law could give assemblers, conversion workshops and charging operators clearer rules. If you are weighing a CNG conversion or an EV, watch the final text for standards, safety requirements and any incentives.
What to do now
- Do not delay or rush a purchase because of a draft bill. Nothing is law yet, and the National Assembly process can change a lot.
- If you are buying a locally assembled car, ask the dealer about warranty terms, service centres and where parts are stocked.
- Ask for the CKD or SKD status of the model. It tells you how much is built locally.
- Budget for car insurance in Nigeria and servicing on top of the sticker price.
- Follow the draft when it is released, and check the stakeholders’ comments for tariff and financing language.
Frequently asked questions
Is the National Automotive Industry Bill law yet?
No. A clean draft is expected by mid or late November 2026, after which it goes through further consultation and then the National Assembly.
Has the price of locally assembled cars dropped?
Officials cited one government procurement where an unnamed model reportedly fell from about N72 million to N35 million. That is not a confirmed retail price cut for private buyers.
Does the bill change tokunbo import rules?
The reports reviewed do not mention it. Confirm current rules with the Nigeria Customs Service.
Key takeaway: Nigeria’s auto policy is shifting towards local assembly, local parts and stronger regulation. The real tests for buyers will be lower prices, better after-sales service and more affordable financing. None of that is guaranteed yet.
Disclaimer: vehicle prices, import duties and specs change frequently in Nigeria. Always confirm current figures with the dealer or official source before buying.
