June 16, (THEWILL) – The National Economic Council (NEC) has urged the National Assembly to pass the 2023 National Automotive Industry Development Bill.
THEWILL reports that President Bola Tinubu, on Thursday, in Abuja, inaugurated the NEC, chaired by Vice-President Kashim Shettima.
According to the NEC, the bill, when passed and signed into law, would strategically position Nigeria to attract significant Foreign Direct Investments in the country’s automotive sector.
NEC also said legislative backing for the industry would put in place the necessary levers for exponential growth in vehicle production to feed the Nigerian, African and global markets.
Governor of Abia State, Alex Otti, who briefed the media after the meeting, said the Council made other recommendations “aimed at establishing a highly effective ecosystem for the exponential development of Electric Vehicle and Compressed Natural Gas Vehicles” in Nigeria.
Governor Otti said the Council sought approval for the implementation of the Electric Vehicle Development Plan and Policy to fast-track the development of electric vehicles in Nigeria.
According to the Governor, the Council called for necessary funding and support to the Nigeria Automotive Design and Development Council (NADDC) “for the development of the Ultimate Nigerian vehicle, the pride of the nation, one in tune with the culture, terrain and economic structure of Nigeria, perfect balance of affordability, practicality and advanced features.”
He noted that the legislative support for the automotive industry would help to provide dedicated funding for the Vehicle Finance Scheme with special emphasis on EV and CNG vehicles, to enable the affordable nationwide purchase of locally produced vehicles by Nigerians, thereby boosting production and further growth of the sector.
Otti said the Council targets one million jobs in the automotive sector and attaining 40% local content production through strategic funding and affordable infrastructure at dedicated industrial parks and clusters.
He said the development of the automotive industry would enable the attainment of 30% local production as Electric Vehicles and enforcement of stricter Vehicle Emission Regulations to achieve environmental targets in line with the 2015 Paris Accord (on the mitigation of greenhouse gases) and the nation’s commitment to net zero by 2060 as pronounced at the 2021 COP26 in Glasgow.
“Nigeria presents an unparalleled destination for strong automotive companies, it gives them an opportunity to be part of an exciting journey in the provision of relevant advanced and value-added transportation solutions for the upliftment of the lives of millions of people.
“Over $1bn/N500bn has been invested into Nigeria by credible local and international investors in setting up automotive production and assembly plants in the country. The facilities are located in the states of Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna, and Kano.
“Top investors are Innoson Motor Manufacturing, Dangote Sino Trucks, Dangote Peugeot, Mikano Geely/Changan, PAN, Stallion/Hyundai, Honda, Elizade/Toyota, Coscharis/Ford, Iron Products, Kojo Motors/Omaa, Jet Systems Motors.
“Combined installed capacity of 400,000 units per annum has been achieved.”
