The National Assembly has pledged to support policies aimed at reviving Nigeria’s automotive industry and reducing the country’s dependence on imported vehicles.
The Chairman of the Senate Committee on Industry, Senator Francis Fadahunsi, made the commitment during an inspection of the facilities of PAN Nigeria Limited in Kaduna on Wednesday, October 7, 2026.
Fadahunsi said the continued influx of foreign-used vehicles was undermining local manufacturing and contributing to pressure on the nation’s foreign exchange reserves.
Fadahunsi said Nigeria had the capacity to produce vehicles locally, adding that the country should no longer allow its market to be dominated by imported vehicles when local manufacturers could meet part of the demand.
“Nigeria has become a dumping ground, so we have to reject it,” he said.
The senator, a retired Customs officer, said his experience had exposed him to the economic implications of excessive vehicle importation.
He urged the federal government to strengthen its support for local manufacturers and encourage Nigerians to patronise vehicles produced within the country.
Fadahunsi said the committee’s inspection showed that Nigerian engineers have the technical capacity to develop vehicles and other means of transportation suited to the country’s environment and economic realities.
Fadahunsi added that the PAN facility, which covers nearly 300,000 square metres, remained a valuable national asset with the potential to create thousands of jobs if fully operational.
According to him, the company has the capacity to employ more than 3,000 workers when operating at full capacity.
He also noted that PAN’s training facilities had produced about 12,000 artisans, including mechanics, forklift operators and other technical personnel.
Fadahunsi appealed to President Bola Tinubu to give greater attention to the automotive sector, saying stronger government patronage would stimulate production, create jobs and conserve foreign exchange.
“Mr President, you should know the gravity of this, the drain on our foreign reserve caused by this particular product,” the lawmaker added.
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He also assured stakeholders that the National Assembly would work to accelerate the passage of the proposed National Automotive Industry Bill 2026.
He said the legislation would provide a stronger framework for protecting local investments and addressing challenges confronting vehicle assembly and manufacturing in Nigeria.
“We pledge our cooperation with you and assure you that we will do everything within our powers to accelerate legislation on the Bill,” Fadahunsi said.
Earlier, the Managing Director of PAN Nigeria Limited, Taiwo Oluleye, urged the National Assembly to urgently enact the proposed legislation.
Oluleye said the automotive industry needed consistent policies and adequate protection to attract investment and compete favourably with imported vehicles.
She said PAN, established in 1972 and which commenced operations in 1975, has an installed annual production capacity of 90,000 vehicles.
According to her, the company’s production capacity has, however, been affected by rising operational costs, foreign exchange challenges, high interest rates and policy inconsistencies.
She said PAN had transformed from a single-brand assembly plant into a multi-brand facility producing SUVs, sedans, buses and pick-ups.
Oluleye said some of the company’s buses had also been converted into ambulances.
According to her, Nigeria could become a major vehicle-exporting hub in Africa if it improves local content and provides an enabling environment for manufacturers.
The NADDC boss said the council was working to address major challenges in the sector, including legislation, patronage and access to credit.
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