Local vehicle manufacturing begins soon, declares industry minister
In a bold move to transform Nigeria into a key player in the global vehicle manufacturing sector, Minister of Industry, Trade and Investment, Doris Uzoka-Anite, has unveiled plans for the Nigeria Automotive Industry Development Plan. The announcement came during a high-profile gathering of stakeholders from both public and private sectors on Friday.
Minister Uzoka-Anite outlined the strategic vision behind the plan, emphasizing Nigeria’s abundant raw materials, skilled workforce, and robust market potential. The comprehensive plan aims to position Nigeria as a fully-fledged vehicle manufacturer within the next decade, covering a range of vehicles from motorcycles and tricycles to sedans and heavy-duty trucks.
“We have the capacity, resources, and now a strategic roadmap to realize our potential in vehicle manufacturing,” stated Minister Uzoka-Anite. “Our goal is not just local production but also affordability, making vehicle ownership accessible to the average Nigerian.”
Joseph Osanipin, Director-General of the National Automotive Design and Development Council, detailed key policy incentives to support the plan, including a proposed five-year tax holiday for vehicle assemblers in Nigeria. This move is part of a broader strategy focusing on backward integration and local component production to boost the automotive industry.
The implementation committee for the Automotive Industry Development Plan comprises representatives from key ministries including Finance, Transport, Environment, and Industry, Trade and Investment, along with stakeholders such as the Nigeria Customs Service, the Manufacturers Association of Nigeria, and the Standards Organisation of Nigeria.
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The initiative comes at a critical juncture for Nigeria’s automotive sector, which has faced challenges such as rising production costs and subdued demand for locally assembled vehicles. Recent data indicates a decline in capacity utilization and workforce reduction among local assemblers.
The Federal Government’s Automotive Policy of 2014 aimed to promote local content and establish vehicle financing schemes. Despite these efforts, Nigeria currently produces less than 10% of the vehicles used domestically, highlighting the need for a comprehensive strategy like the Nigeria Automotive Industry Development Plan to revitalize the sector and drive economic growth.
