DECEMBER 8, 2023
Stakeholders seek speedy passage of updated auto industry bill
Automotive experts and other key stakeholders have called for accelerated work on the ongoing legislative framework for the updated National Automotive Industry Development Plan, which calls for mandatory purchasing of locally produced vehicles.
At an interactive forum hosted by the National Automotive Design and Development Council (NADDC) on Wednesday in Lagos, they gave a speech. The experts, who included automakers and representatives of KPMG and the African Continental Free Trade Area (AfCFTA), bemoaned the protracted delay in passing the auto industry act and its detrimental effects on the growth of the country's automotive sector.
The Federal Executive Council approved the 2023 NAIDP in May with the goal of creating an exponential increase in local production vehicles, up to 40% local content and 30% locally produced electric vehicles. The programme also aims to create one million jobs and mandate government and government contracting companies to purchase locally produced vehicles.
The benefits of establishing a single market in Africa for Nigeria's auto industry were discussed in a lecture by Mr. Ogoegbunam Chukwurah, Lead Export Market Development, National Action Committee on AfCFTA. He focused on the ways that Nigerian automakers could benefit from the AfCFTA's opportunities to compete on the world auto market.
Speaking about the different elements of the NAIDP 2023, Tobi David, an advisory manager at KPMG, expressed optimism about Nigeria developing into a hub for the automotive sector in West Africa. Luqman Mamudu, a former acting director general of NADDC, spoke about the difficulties in putting the policy into practice and the future.
The auto experts and others concurred that the auto industry law should be implemented as soon as possible. Additionally, they suggested forming a working committee with a project management office and a biannual assessment of the NAIDP implementation schedule for 2023.
Dr. Doris Uzoka-Anite, Minister of Industry, Trade, and Investment, stated via Zoom that "economic diversification is achieved through the auto industry." Furthermore, this is consistent with the ministry's mandate to guarantee the economy's complete industrialization and diversification.