Car Talk
FEC Approves New 2023 Auto Policy For Boosting Local Production Of Vehicles
The Federal Executive Council has approved the new National Automotive Industry Development Plan, 2023.
The memo for the plan was presented to the FEC by the Honourable Minister of Industry, Trade, and Investment, Otunba Niyi Adebayo. In attendance was the DG, NADDC, Jelani Aliyu.
The NADDC has developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry: the new NAIDP would strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers, and all relevant stakeholders.
The newly approved NAIDP is aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40% local content, attaining 30% locally produced Electric Vehicles, generating 1 million jobs, enforcing patronage of locally produced vehicles by government and companies working on government contracts, and also boosting R&D and technology transfer.
Minister of Trade and Investment, Niyi Adebayo, explained that the new policy would explore how the automotive industry can migrate seamlessly from combustible engines into electric solar-powered engines.
This was also in addition to FEC’s approval for the implementation of the first-ever Nigeria investment policy 2023 to 2027.
Adebayo explained that the concept was for the country to develop rapidly through industrialization, then snowball into a sustainable investment climate to attract the kind of investment we desire.
Briefing newsmen, he said, “We felt that there was a need for us to have an investment quality, which would give confidence and allow people who want to better the country, that confidence to bring their funds into the country, the result of which we put this policy together.
“Second memo, which we presented was for the approval of the Nigeria automotive industry development plan 2023 to 2033. This is an improvement on the 2013 automotive industry development plan, which was in place before.
“The whole idea is to bring it up to date with current realities. Also, to put our auto industry on the proper footing, I don’t know if you are aware that we have capacity today to assemble 400,000 vehicles.
“One thing that happens to the auto industry is that when the assembly or companies move into a country to make that investment, which can be anything between $300 to $400 million for the assembly plant. What happens is that the makers of the components that go into the manufacture of these vehicles also move to that country to set up competent baking factories”.
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