Local Automotive Components / Parts Development Fund

A major factor that has militated against the development of the sub-sector has been inadequate capitalization and funding. Apart from working capital requirements, a lot of forex is needed because currently more than 70% of the sector's material inputs are imported. The current high interest rate charged by commercial banks makes long-term loans unattractive.

Applications of over #10.00 billion has been received from 63 companies since inception in 2004. They have been assesses and passed to the Bank of Industry for further financial assessments before final loan approval and disbursement. # 9.98 billion has been disbursed to 27 companies. Loan application of # 2.2 billion by 12 companies is under consideration.


The Council supports research work aimed at advancing the frontiers of technological development in the sub-sector. This is to be done by direct grant to related research project would only be supported if the assessment panel finds that :

  • It is relevant to the development of the automotive sector;
  • It is technically feasible and have potential for commercialization;
  • The raw materials, infrastructure and relevant manpower to conduct the study are available.

The take-off of this scheme was advertised and many organization have submitted R&D proposals for funding. These proposals are being assessed. A project, "The development of production Tools for the commercial production of 3 HP Petrol Engine" submitted by Prof. A.O.A Ibhadode of the University of Benin has been funded with #3.33585 million. Other applications are being assessed. A committee has been set up with Raw Materials Research and Development Council (RMRDC) and other stakeholders to advice on research and development priorities in the automotive sector.

Berekotry Industries Nig. Ltd, was awarded a grant of # 4.00 million for R&D to perfect the production of Auto lubricating grease of various grades from Hexose Cassava, petroleum oils and saponification materials in 2010.


Establishment of Automotive Test Centre

National Automotive Design and Development Council (NADDC) is to establish a test centre to achieve the following objectives:

  • To ensure the safety and health of Nigerians
  • To develop local automotive content
  • To ensure the good operation and maintenance of Nigerian vehicles
  • To obtain capability to conduct homologation tests

To achieve that objective, the NADDC wants to establish the following laboratories:

  • Component testing lab
  • Automotive Materials lab
  • Emission testing lab
  • Vehicle evaluation lab
  • fatigue/structural evaluation lab
  • Power train evaluation lab
  • Automotive electronics lab
  • Noise/vibration lab

The feasibility study for the establishment of the test centre has been concluded and initial steps for its establishment started. Ninety-four (94) automotive safety standards have been developed with the standards organization of Nigeria (SON) and other stakeholders.

Nigerian Vehicle Project

NADDC has a programme for the design and prototying of a low cost Nigeria vehicle. Activities under the programme this year include:

  • Development of a Truck/Van NADDC is working with the Nigeria automotive Industry to develop a truck/van for the commercial use and passenger transport.
  • Collaborating with Martaba Technologies NAC is collaborating with Martaba Technologies to design and develop a van that will be well suited to Nigeria conditions.


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