EVERY car dealer in Nigeria must obtain a certificate issued by the National Automotive Design and Development Council (NADDC).
Speaking at the launch of the initiative, tagged ‘National Vehicle Dealership Registration Framework’, in Abuja yesterday, the Director-General of NADDC, Oluwemimo Joseph Osanipin, said the policy will curb criminal activity, deepen access to financing, and formalise a largely fragmented market.
The digital platform is described as a transition from planning to practices, which is a central pillar of the National Automotive Industry Development Plan 2023–2033 (NAIDP).
The framework creates a centralised, data-driven registry of vehicle dealers nationwide that effectively establishes a digital identity for both dealers and vehicles.
Presently, Nigeria’s vehicle distribution ecosystem is operating with minimal standardisation, allowing informal operators to dominate supply chains. This has complicated vehicular and dealer traceability, reduced consumer confidence, and limited access to formal financing.
Osanipin said the new system directly addresses these gaps by distinguishing certified dealers from informal actors and integrating the sector into a regulated digital network.
He said: “A roadmap is useless without a vehicle. This registration framework is that vehicle.”
Members of the Association of Motor Dealers of Nigeria (AMDON) agreed with Osanipin that the absence of a unified database has not only weakened governance but also constrained growth in one of Africa’s largest automotive markets.
Osanipin added that the framework also has regional implications.
“By standardising dealership operations, Nigeria aims to position itself competitively within the African Continental Free Trade Area (AfCFTA),” he said.
Osanipin said a harmonised and professional dealership network would enable Nigerian operators to meet continental standards, enhancing cross-border trade in vehicles.
Beyond security, Osanipin explained that the framework is designed to unlock financing for dealers, a long-standing bottleneck in the sector.
He added that registered dealers would gain access to low-interest intervention funds through institutions such as the Bank of Industry, while also benefiting from increased credibility with lenders.
The digital registry is expected to capture transaction-level data—linking vehicles to dealers and buyers—thereby creating an audit trail that security agencies can leverage. This is a major selling point of the initiative that will excite the Federal Government is its potential to strengthen national security.
President of AMDON, Ajibola Adedoyin noted that the framework could significantly improve the traceability of vehicles used in criminal activities.
According to him, the inability to track vehicle ownership has historically hindered investigations.
“Most crimes are committed through vehicles, and tracing the source becomes difficult. With this, every car can be traced to its origin and purchaser,” he said.
Adedoyin noted that data transparency is central to credit expansion, “Credit facilities are based on trust. If you don’t know who you are dealing with, you cannot lend. But once dealers are recognised and documented, financing becomes easier.”
He stressed that the initiative could stimulate fleet expansion, boost inventory turnover, and improve overall market liquidity.
Adedoyin further disclosed that the industry expects a transition period of three to six months for dealers to comply before enforcement begins.
Members of the association insisted that the framework could reduce the influx of unverified imports and improve compliance with national standards.
Adodoyin warned that non-compliant operators risk being excluded from the market as consumers increasingly gravitate toward certified dealers.
“Nobody wants to buy a product without knowing its source. Those outside the system will gradually be weeded out,” he said.
Developed with technical partner Omnipact Ventures, the platform introduces a fully digital registration process, reducing paperwork and approval timelines.
It also aims to curb grey-market imports by ensuring that vehicles entering the market are traceable through certified dealers.
