Industrial Development and the Implementation of Local Content Policy in Nigerias Automotive Sector
Abstract
This study examines industrial development and the implementation of local content policy in Nigeria’s automotive sector from 2014 to 2022. The sector holds significant potential as a key driver of the national economy. However, concerns persist regarding the extent to which primary production processes in the Nigerian automotive industry align with the government’s local content policy to facilitate the production of truly made-in-Nigeria vehicles. The study aimed to assess the incorporation of local content policy in Nigeria’s automotive sector between 2014 and 2022. To achieve this objective, the following hypothesis was tested: Local content policy has not been effectively integrated into Nigeria’s automotive sector. Grounded in Schumacher’s Economic Localization Theory (1973), this research adopted a mixed-method approach, utilizing interviews and documentary analysis for data collection. A qualitative descriptive method, based on content analysis, was employed for data interpretation, while thematic analysis was used to categorize dominant themes from interview responses. The findings reveal that the necessary enabling environment has not been fully established, and a lack of legislative backing for the policy framework hinders effective implementation. The study concludes by emphasizing the need for legislation to strengthen compliance with local content policy and promote a more harmonized approach to its execution.
Keywords
Automotive SectorIndustrial Development PoliciesLocal Content PolicyTechnology
References
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