By Akinsuroju Olubunmi
Government initiates local vehicle manufacturing program
Nigeria aims to emerge as a key player in the vehicle manufacturing sector, announced Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment. During the launch of the Nigeria Automotive Industry Development Plan, attended by stakeholders from both the public and private sectors, the minister outlined plans to position Nigeria as a prominent vehicle manufacturer within the next decade.
Uzoka-Anite emphasized Nigeria’s abundant raw materials, skilled workforce, and existing market as foundational elements for vehicle production. She highlighted the comprehensive development plan encompassing motorcycles, tricycles, sedans, and heavy-duty trucks, with the objective of domestically manufacturing vehicles within the next decade, aiming to make vehicle ownership more accessible for average Nigerians.
Joseph Osanipin, the Director-General of the National Automotive Design and Development Council, detailed proposed policies to facilitate the realization of this plan, including a five-year tax holiday for vehicle assemblers in Nigeria, with a focus on backward integration and component production.
The implementation committee for the Automotive Industry Development Plan comprises representatives from various government ministries and agencies, including Finance, Transport, Environment, Industry, Trade, and Investment, as well as the Nigeria Customs Service, the Manufacturers Association of Nigeria, and the Standards Organisation of Nigeria.
Despite Nigeria’s previous struggles in the vehicle assembling industry, attributed to rising production costs and weakened demand, the government’s commitment to local manufacturing has been bolstered by policies such as the Federal Government’s Automotive Policy of 2014. This policy aims to enhance local content and establish a vehicle financing scheme to support citizens in purchasing new cars. However, challenges persist, including the government’s reluctance to patronize locally manufactured vehicles and regulatory shortcomings.
Currently, Nigeria produces less than 10 percent of the vehicles used domestically.
Vehicle Manufacturing, Development Plan