Government launches countrywide crackdown on unregistered car sellers to clean up vehicle trade

The Federal Government has introduced the National Vehicle Dealership Registration Framework, a move aimed at reforming Nigeria's auto market, enhancing traceability, and providing financing opportunities for industry stakeholders, with the National Automotive Design and Development Council (NADDC) unveiling the initiative in Abuja on Friday.

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This new framework requires all car dealers to register and obtain a certificate that must be renewed annually, with the process being facilitated through a digital system, according to the Director General of NADDC, Oluwemimo Joseph Osanipin.

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Osanipin stated that the framework marks a significant shift from policy design to implementation under the National Automotive Industry Development Plan 2023–2033, and was developed following consultations with stakeholders in Uyo, Lagos, Kano, and Bauchi.

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During these consultations, members of the Association of Motor Dealers of Nigeria (AMDON) emphasized the need for transparency, fairness, and recognition of professional operators over informal players, which the new registration system aims to address.

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The registration process is expected to not only meet regulatory requirements but also provide dealers with access to credit support, market protection, and inclusion in a structured automotive industry, according to Osanipin.

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Osanipin noted that registering a dealership goes beyond fulfilling a requirement, as it positions the business to benefit from credit support, market protection, and inclusion in a structured automotive ecosystem, and described the framework as a transition from planning to practice.

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The platform will serve as a digital database that captures dealer identity, vehicle transactions, and supply chains, enabling authorities to track stolen vehicles and protect buyers from fraudulent operators, Osanipin added.

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The federal government will only patronize AMDON-certified dealers to support the Nigeria First policy and enhance Nigeria's competitiveness under the African Continental Free Trade Area, according to Osanipin.

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Registered dealers will be linked with vehicle assemblers to build nationwide partnerships for after-sales services, ensuring consistent maintenance support, Osanipin further stated.

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National President of AMDON, Prince Ajibola Adedoyin, said the registration will help address insecurity linked to untraceable vehicles and improve access to credit for dealers through increased transparency and trust.

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Adedoyin encouraged consumers to patronize only certified dealers, noting that proper documentation makes financing easier, and projected that within three to six months, most dealers should be onboarded, after which enforcement would tighten, limiting market access for non-compliant operators.