Nigeria aims to establish itself as a significant player in the vehicle manufacturing industry, as announced by Minister of Industry, Trade, and Investment, Doris Uzoka-Anite.
Speaking during the launch of the Nigeria Automotive Industry Development Plan, Uzoka-Anite outlined the plan’s objective of positioning Nigeria as a fully-fledged vehicle manufacturer within the next decade.
Uzoka-Anite highlighted Nigeria’s abundant raw materials, skilled workforce, and sizable market as key factors driving this initiative.
She emphasized that the plan encompasses the production of various vehicles, including motorcycles, tricycles, sedans, and heavy-duty trucks, with the ultimate goal of reducing the cost of vehicle ownership for Nigerians.
Related News: Death Sentence for Chinese Man Who Killed Nigerian Girlfriend in Kano
Joseph Osanipin, Director-General of the National Automotive Design and Development Council, explained that the proposed policy includes a five-year tax holiday for vehicle assemblers in Nigeria, aimed at promoting backward integration and component production.
The Automotive Industry Development Plan implementation committee includes representatives from relevant government ministries and agencies, as well as industry stakeholders such as the Nigeria Customs Service, the Manufacturers Association of Nigeria, and the Standards Organisation of Nigeria.
The initiative comes amidst challenges faced by Nigeria’s vehicle assembling industry, including rising production costs and weakened demand for locally assembled automobiles.
Despite previous policies aimed at boosting local content, Nigeria currently produces less than 10 percent of the vehicles used in the country.
The Federal Government’s Automotive Policy of 2014 aimed to support automobile companies in enhancing local content and establishing a vehicle financing scheme.
However, challenges such as the government’s reluctance to patronize locally manufactured vehicles and poor regulations have hindered the industry’s progress.
You can also read: Tinubu Commends Nigerians’ Sacrifices, Vows to Lead Nigeria Towards Recovery