Looking for any of Nigeria’s long term development plan that had worked well, all eyes could be facing the 10-year Nigerian Automotive Industry Development Plan (NAIDP 2013-2023).
This was observed by the Minister of Industry, Trade and Investment in collaboration Mr Adeniyi Adebayo, while commissioning the Nigeria-produced and assembled vehicles in Abuja ahead of the recently ended Arugungu Fishing Festival in Kebbi State.
Corroborating the Minister’s views, Director General of National Automotive Design and Development Council (NADDC), Mr Jelani Aliyu told Business Hilights in an interview weekend that the speed of indigenous growth in the sector encouraged the Federal Government to commissioned $1billion worth of locally-assembled vehicles.
The vehicles are locally produced by 17 companies including Coscharis, Nissan, Innoson, Ford and Elizade motors among others.
The DG made it clear that Nigeria was moving forward in the area of automotive assembly adding that from zero production level in 2012 the industry had recorded tens of thousands of newly assembled vehicles in the country.
Aliyu revealed further that since the takeoff of the NAIDP 2023 ten-year plan, about 62 companies have been registered to assemble vehicles at both Semi Knocked Down (SKD) and Completely Knocked Down (CKD) levels with a combined total installed capacity of 423,790 units.
NADDC Director-General, Mr Jelani Aliyu, in a remark said that so far about one billion dollars had been invested by the auto companies whose cars were being unveiled while 4,700 people were directly employed in the sector.
He added that it set aside five billion naira towards a single digit vehicle finance scheme and was talking with banks such as Zenith, Wema and Jaiz to provide the financing for vehicles made in Nigeria.
According to him, the organisation is building three automotive testing centres and three automobile service hubs across the country to promote sustainability and maintenance culture.
The D-G said NADDC was saddled with the responsibility of developing the local automotive sector to discourage the importation of fully built vehicles in the country.
Aliyu said that with the signing of the Africa Continental Free Trade Area (AfCFTA) agreement, it was committed to make Nigeria an advanced hub of automotive production in Africa.
“Not just to build cars for 200 million people but to support local producers by opening up for them market opportunities to the one billion people of the African continent,’’ he said.
The NADDC boss expressed dissatisfaction that Nigerians spent eight billion dollars to import 300,000 to 400,000 vehicles yearly into the country, adding that a lot of money was at shores.
He further noted that a lot of those vehicles were old cars while some were up to 20 years old constituting problems to the buyer.
“That is why we are implementing the NAIDP to promote vehicle production in Nigeria with five cardinal elements around investment promotion, market development, infrastructure development and standards.
“We are proposing incentives to discourage importation of vehicles and encourage local production. We are putting forward a tax holiday to give investors time on investment,’’ he said.
Explaining more the Minister noted that an actual assemblage of 10,343 units had been achieved so far while 31 automotive assembly companies were currently listed under the Bureau of Public Procurement for patronage.
“The vehicles and brands for unveiling are a testament to the zeal and commitment of the automotive industrial subsector to the present government’s efforts towards diversification of the non-oil sector of the economy. If you want to clean your car you can use the best steering wheel cleaner.
“The role of the NADDC in reviving and sustaining the automotive sector has greatly helped in stimulating growth and development in Nigerian automotive industry,’’ he said.
He however urged Nigerians to patronise made-in-Nigeria vehicles to create jobs, build capacity, drive investment, conserve foreign exchange and transfer technology to the citizens.
