The Federal Government has introduced a nationwide vehicle dealership registration system, mandating all car dealers to enroll in a digital database.
The initiative was unveiled in Abuja by the National Automotive Design and Development Council as part of reforms in the auto sector.
Consequently, every dealer must obtain a certificate, which will be renewed annually under the new regulatory framework.
“This framework is not merely an administrative milestone; it is the day we transition from planning to practice,” said DG Oluwemimo Joseph Osanipin.
The policy is in with the National Automotive Industry Development Plan 2023–2033, which seeks to formalise Nigeria’s fragmented vehicle market.
“By registering your dealership, you are positioning your business to benefit from credit support, market protection and inclusion,” Osanipin added.
Meanwhile, the system introduces a digital registry to capture dealer identities, vehicle transactions, and supply chains across the country.
“The platform will help track stolen vehicles and protect buyers from fraudulent operators,” he explained.
How The New Dealer System Will Work Nationwide
The framework follows consultations held in Lagos, Kano, Uyo, and Bauchi with members of the Association of Motor Dealers of Nigeria.
Dealers had requested more transparent rules and formal recognition to separate legitimate operators from informal traders.
“We demanded fairness, transparency, and recognition of professional operators,” a stakeholder position conveyed during consultations revealed.
Under the new system, registered dealers will gain access to structured financing and credit facilities, which have long been limited in the sector.
“Proper documentation makes financing easier and builds trust with lenders,” said AMDON President Prince Ajibola Adedoyin.
Furthermore, the government plans to link certified dealers with local vehicle assemblers to improve after-sales service nationwide.
“This will ensure consistent maintenance support and strengthen partnerships across the industry,” Osanipin said.
Security, Financing And Nigeria First Policy Push
The government also tied the new policy to insecurity, especially the circulation of untraceable and allegedly stolen vehicles.
“Registration will help address insecurity linked to untraceable vehicles,” Adedoyin stated.
In addition, the policy supports the Nigeria First agenda, with authorities indicating preference for certified dealers in public procurement.
“The government will prioritise AMDON-certified dealers in its vehicle purchases,” Osanipin confirmed.
This step is expected to boost local participation under the African Continental Free Trade Area by strengthening Nigeria’s auto value chain.
Meanwhile, enforcement is expected to tighten after an initial onboarding period of three to six months.
“Within months, most dealers should be onboarded before stricter compliance begins,” Adedoyin added.
The initiative signals a shift toward stricter regulation in Nigeria’s auto market.
The policy also hopes to restore buyer confidence by ensuring every vehicle transaction is traceable within a central system.
As the rollout begins nationwide, the success of the framework will depend on compliance and enforcement across both urban and informal markets.
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