Seeks tighter regulation of automobile dealers in proposed industry bill
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The Economic and Financial Crimes Commission (EFCC) has raised concerns over the proliferation of automobile dealerships across Nigeria, warning that car lots could be exploited as channels for money laundering and other financial crimes.
The commission thus called for stricter regulation and effective supervision of automobile dealers through provisions in the proposed National Automotive Industry Bill 2026.
Francis Usani, the EFCC representative at a stakeholders’ engagement on the draft legislation organised by the National Automotive Design and Development Council (NADDC) in Abuja on Tuesday, said the growing number of car stands across the country required closer regulatory attention.
Usani said the proposed legislation presented an opportunity
Usani said the proposed legislation presented an opportunity to address financial crime risks associated with automobile dealerships by incorporating measures to strengthen oversight and compliance within the sector.
He observed that automobile businesses were classified as Designated Non-Financial Businesses and Professions (DNFBPs), which are subject to anti-money laundering regulations.
According to him, inadequate supervision of such businesses had been among the issues that exposed Nigeria to international scrutiny over its anti-money laundering and counter-terrorist financing framework.
He said the issue was particularly important given
He said the issue was particularly important given Nigeria’s removal from the Financial Action Task Force (FATF) grey list, noting that weaknesses in the supervision of DNFBPs had contributed to the country’s previous listing.
“If you go outside Abuja alone, you see almost every nook and cranny is a car lot. And then we have seen it that this is obviously money laundering,” Usani said.
He urged NADDC to incorporate appropriate provisions into the proposed bill to control the activities of automobile dealers and address practices that could facilitate illicit financial transactions.
Usani said stronger regulation of the sector would
Usani said stronger regulation of the sector would also help Nigeria fulfil its international obligations on combating money laundering and terrorist financing.
He assured the council of the EFCC’s readiness to collaborate in developing measures to address the identified risks and improve regulatory oversight of the automotive industry.
The EFCC representative commended NADDC for initiating the legislative review, expressing optimism that the proposed bill would provide an opportunity to strengthen safeguards against financial crimes in the sector.
The proposed National Automotive Industry Bill 2026
The proposed National Automotive Industry Bill 2026 is expected to establish a National Automotive Development Commission with enhanced regulatory and enforcement powers, replacing the existing NADDC legal framework.
The NADDC Director-General, Otunba Oluwemimo Osanipin, in his remarks, explained that the proposed legislation would repeal the existing council’s Act and establish the National Automotive Development Commission with enhanced regulatory oversight and enforcement powers.
Osanipin said the automotive industry had suffered from policy uncertainty, enforcement bottlenecks and legislative gaps, which discouraged long-term capital investments in the capital-intensive sector.
He explained that emerging technologies, including electric vehicles
He explained that emerging technologies, including electric vehicles and compressed natural gas-powered vehicles, as well as changing global manufacturing and regional trade dynamics, required a more robust legal framework.
Osanipin urged ministries, departments and agencies to identify areas of possible regulatory overlaps and contribute to a comprehensive legislation capable of supporting a whole-of-government approach to automotive development.
The Nigeria Customs Service (NCS), represented by Assistant Comptroller Joseph Atile of its Tariff and Trade Department, pledged support for the proposed bill.
Atile said the service would collaborate with NADDC
Atile said the service would collaborate with NADDC on trade facilitation, compliance enforcement and fiscal policies that encourage local assembly and manufacturing.
He said effective implementation of the legislation would help drive employment generation, export growth, technology transfer and industrialisation.
The FRSC Corps Marshal, represented by Kunle Oguntoyinbo, also called for stronger provisions on vehicle safety, roadworthiness and environmental sustainability.
The representative said automotive industry development must extend
The representative said automotive industry development must extend beyond vehicle production and commercial interests to prioritise the protection of human lives.
He reaffirmed the Corps’ commitment to supporting policies that promote a safe, efficient and globally competitive automotive industry.
The stakeholders, collectively, expressed optimism that their contributions would strengthen the proposed legislation and position Nigeria’s automotive sector for sustainable growth.
