In an effort to transform the Nigerian Automotive Industry and attract new investments to the sector, the Federal Ministry of Industry, Trade and Investment, FMITI, and the National Automotive Design and Development Council, NADDC, have reviewed the Nigerian Automotive Industry Development Plan, NAIDP.
The National Assembly in 2018, presented the Draft Automotive Bill in 2018 to the Presidency for consideration and assent. However, due to several concerns and issues flagged by several key stakeholders, the Draft Auto Policy was returned to the National Automotive Design and Development Council (NADDC), the Regulator and Agency under the Ministry of Industry, Trade and Investment (FMITI) for further review and amendment.
During a roundtable and stakeholders meeting on automotive industry, in Abuja, yesterday, the Minister of Industry, Trade, And Investment, Otunba Niyi Adebayo, said in many countries across the world as witnessed in South Africa and Morocco, the automotive industry plays a strategic and catalytic role in economic development in respect of the employment creation, GDP contribution, micro, small and medium enterprises (MSMEs) development in respect of automotive parts, components and services, skills development and the acquisition of technology.
According to him, the Federal Government in its effort to implement the Nigerian Industrial Revolution Plan, NIRP, accordingly approved a new plan called the Nigerian Automotive Industry Development Plan, NAIDP, to transform the Nigerian Automotive Industry and attract investment into the sector.
Adebayo stated: “The Nigerian market and growing population of the middle class has proven to be the focal attraction for investors with enormous opportunities inherent within the automotive sector. It has become imperative for key government stakeholders to have a round table session on articulating the key issues and the way forward so as to give the legal framework which will drive investment into the sector and create employment.”
Speaking in the same vein, Director General, NADDC, Jelani Aliyu, said the NAIDP was launched to resuscitate the automotive sector and to bring back local production.
He added that NAIDP has five cardinal elements – infrastructural development, investment promotion in the automotive sector, standard improvement, skills development and market development.
“The auto policy itself is a set of fiscal incentives to support local production and discourage the importation of fully built vehicles whether they are brand new or used,” he said.