Stakeholders brainstorm on auto policy, seek legal backing for reviewed NAIDP

Stakeholders brainstorm on auto policy, seek legal backing for reviewed NAIDP

 

Automotive experts and other major stakeholders have called for accelerated work on the ongoing legislative framework for the updated National Automotive Industry Development Plan.

They spoke in Lagos on Wednesday at an interactive forum organised by the National Automotive Design and Development Council (NADDC).

The experts including representatives of the KPMG and the African Continental Free Trade Area (AfCFTA) and automakers lamented that the prolonged delay in the enactment of the auto industry act was holding back the development of the nation’s automotive sector.

The 2023 NAIDP approved by the Federal Executive Council in May is aimed at enabling the exponential increase in the local production vehicles, reaching 40 per cent local content, 30 per cent locally produced electric vehicles, generating one million jobs and enforcing patronage of locally produced vehicles by government and companies working on government contracts.

Mr Ogoegbunam Chukwurah, Lead Export Market Development, National Action Committee on AfCFTA, gave a lecture on the benefits creating a single market in Africa would have for Nigeria’s auto sector.

He dwelt on how Nigerian auto players could take advantage of opportunities offered by AfCFTA to play on the global auto business stage.

Advisory Manager at KPMG Tobi David spoke on the various components of the NAIDP 2023 and was optimistic about Nigeria becoming a West African hub in the automotive industry.

A former acting DG of NADDC Luqman Mamudu focused on the challenges of implementing the policy and the way forward.

The auto experts and others agreed on the need to waste no further time in making the auto industry law a reality.

They also recommended the setting up of an working committee for the 2023 NAIDP implementation with a project management office and a two-yearly review of the progress being made.

Speaking via zoom, Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, said, “The auto industry is key to achieving economic diversification. And this is in line with the mandate of the ministry to ensure full diversification and full industrialisation of the economy.”

To facilitate market access and market expansion, she assured of engagement with different economic players to ease the difficulties in doing business and allow local manufacturers to participate in AfCFTA to export their products.

Director General of the NADDC, Mr Joseph Osanipin, in his welcome address, stated that the NAIDP is a critical pillar of the government’s efforts to transform the automotive sector and position it as a key driver of economic growth and job creation.

He said, “The plan is designed to address the key challenges facing the sector such as low production level, insufficient local content and limited access to financing.”

Osanipin maintained that the NAIDP 2023 is a comprehensive and ambitious plan that seeks to align local policies with AfCFTA in such a manner that would allow the industry to compete favourably on the continental and eventually global level.

He said the policy would ensure sustainability and environmental responsibility as it offers incentives in the area of the CNG and electric-powered vehicles.

Chairman of Nigerian Automobile Manufacturers Association (NAMA), Mr. Bawo Omagbitse, expressed the group’s appreciation to the NADDC for putting up the forum.

He stressed the eagerness of NAMA to work closely with the NADDC and other relevant authorities for proper implementation of the auto policy, adding that NAMA would develop internal guidance system to ensure that members operate in accordance with the rules and regulations provided in the NAIDP document.

Other participants at the meeting included representatives from Motorcycle Manufacturers Association of Nigeria (MOMAN), GM Motors, Anammco, Innoson Vehicle Manufacturing ltd, Proforce, JET Motors, Mikano Motors, Nord Motors, Stallion, Perfection Motors, Toyota Nig. Ltd, Honda, CIG Motors, Dangote Sinotruck, Coscharis Motors, Kewalram, Dana Motors, VON Auto, Lanre Shittu Motors, CFAO and Saglev.