The Federal Government has unveiled a national vehicle dealership registration framework designed to sanitise the automotive sector and curb fraudulent practices across the country.
The Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, inaugurated the framework in Abuja on Friday, stating that the initiative seeks to create a comprehensive database of vehicle dealers nationwide. He explained that the framework would address long-standing gaps in data, accountability, and consumer protection within the sector.
“It has been long overdue for us to have full data, full details, and the identity of those who are motor dealers in Nigeria,” Mr Osanipin said.
He noted that the absence of reliable data had enabled fraudulent practices, including the sale of stolen or defective vehicles. “We have heard stories of people buying vehicles that later turned out to be stolen, and it is the buyer who ends up being arrested.”
According to the director-general, the registration will ensure traceability of both vehicles and dealers, thereby improving transaction transparency. “Immediately we have this, we will be able to trace them. We have their identity, and we can access information about the number of vehicles being sold and where they were sold.”
The framework is also expected to boost investor confidence and facilitate access to financing for vehicle purchases. “Banks will not want to finance someone whose money might disappear. Once we implement this, it will open opportunities for those who wish to buy used vehicles to approach the bank,” Mr Osanipin added.
He said the initiative would support partnerships between dealers and vehicle manufacturers to improve after-sales services nationwide, adding that only registered dealers would benefit from such partnerships and associated incentives.
On enforcement, the NADDC boss explained that the system would be largely self-regulating, driven by consumer awareness and market forces. “Nigerians, on their own, will systematically phase out those who are not recognised.” He confirmed that registration would be continuous, with certificates renewable annually.
Speaking at the event, the President of the Association of Motor Dealers of Nigeria (AMDON), Ajibola Adedoyin, described the initiative as a milestone for the industry. He said the framework would enhance security by enabling authorities to trace vehicles used in criminal activities.
“In order to develop the auto system, we need authentic dealers, and the government needs to identify them. With this, every car can be traced to the doorstep of its source. It will also ensure improved data, which will facilitate access to credit for both dealers and buyers,” Mr Adedoyin said.
He urged unregistered dealers to comply with the new framework, warning that non-compliant operators would be phased out over time. He also called for stakeholder collaboration and media support to raise awareness about the importance of registration and the need for buyers to patronise registered dealers only.
The framework was developed following stakeholder engagements held in Lagos, Uyo, Kano, Bauchi, and the Federal Capital Territory. It is a collaborative effort involving the NADDC, AMDON, and Omnipact Ventures, and includes a digital portal for nationwide dealer registration.
