The Senate Committee on Industry has urged President Bola Ahmed Tinubu to intensify government support for local vehicle manufacturing, warning against the continued importation of foreign vehicles. The committee argues that reviving Nigeria’s automotive industry would save scarce foreign exchange, create jobs, and provide affordable mobility options for the population.
Senator Francis Adenigba Fadahunsi, Chairman of the committee, made the call during an oversight visit to PAN Nigeria Limited in Kaduna. The visit was part of a broader assessment of government-owned and private industrial facilities to determine how the Federal Government’s Renewed Hope Agenda could translate into tangible benefits, particularly for rural communities. Fadahunsi stated that the committee had reviewed locally developed prototypes capable of competing favorably with imported vehicles and tricycles.
“We have seen a prototype that is even stronger than the ones they are bringing from India,” Fadahunsi said. “Today, the Federal Government will be aware that there are better alternatives that Nigerian engineers can produce, so as to ameliorate all the imported vehicles and imported tricycles that are being used by the rural population.”
The senator criticized the influx of used vehicles, popularly known as Tokunbo, describing Nigeria as a dumping ground for foreign cars. He noted that PAN’s facilities in Kaduna have an installed capacity of approximately 90,000 vehicles annually, with the potential to produce up to 240 vehicles daily if adequately supported. Fadahunsi emphasized that reviving the plant to full capacity could employ more than 3,000 staff and stimulate economic activity, while also highlighting that the company had trained 12,000 artisans, a move he said would have a multiplier effect on nearly one million people.
During the visit, PAN Nigeria Limited Managing Director Mrs. Taiwo Oluleye appealed to the Senate committee to support the proposed National Automotive Industry Bill 2026. She described the current operating environment as challenging due to high costs, exchange-rate pressures, expensive borrowing, and policy inconsistencies. Oluleye revealed that while PAN previously achieved 40 percent local content in its production under more favorable conditions, the local content across the industry has now fallen to below four percent.
Despite these challenges, Oluleye expressed optimism regarding the Federal Government’s Nigeria First policy, which she believes could promote backward integration and rebuild local manufacturing. She disclosed that PAN is collaborating with academic institutions, including Ahmadu Bello University and Kaduna Polytechnic, to identify locally available raw materials for vehicle components. Oluleye described the automotive sector as a critical driver of industrialisation with strong linkages to steel, aluminium, plastics, rubber, finance, ICT, and logistics, asserting that modest investments could help revive the company to its peak annual capacity.
<small>Source: The Sun Nigeria — read the original story there.</small>
