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The trust of the National Automotive Policy shall be to ensure the survival, growth and development of the Nigerian automotive industry using local human and material resources.  This is with a view to enhancing the industry’s contribution to the national economy in the areas employment generation, technology acquisition, effective utilisation of local raw materials and resources and in the transportation of people and goods. The policy was approved by the Transitional Council on 10th August 1993, and launched on August 23rd 1993.

The National Automotive Policy provided for the establishment of the National Automotive Council as the agency that will carry out its objectives.  Act No. 84 of 25th August 1993  was promulgated to back up the establishment of the Council as a Parastatal of the Federal Ministry of Industry.  Its functions include the following:

  1. Regularly study and review the automotive parts/ components development industry in Nigeria;
  2. Evolve a local content programme specifying which component parts are to be continuously deleted from the imported CKDs;
  3. Recommend incentive measures for ensuring compliance with approved local programmes;
  4. Approve and recommend new models of vehicles envisaged for the Nigeria market to ensure model rationalisation;
  5. Carry out inspection and other quality assurance activities in factories, ports and roads in pursuance of other objectives specified above;
  6. Regularly evaluate the pricing structure and quality of the products of the Assembly Plants to ensure international competitiveness;
  7. Forecast the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw materials requirements;
  8. Liaise with relevant organisations charged with the production of raw materials (such as sheet metal alloy and special steel);
  9. Regularly review the penalties to be imposed for non-compliance with the guidelines and programmes specified by it; and
  10. Perform such other functions as may be assigned it by Government from time to time.


The National Automotive Council was established as a Parastatal to ensure timely execution of the provisions of the policy so as to revitalise the auto industry and to achieve the production of a truly Nigerian vehicle.