Business
Nigeria’s auto stakeholders urge Tinubu to sign NAIDP into law
In a unified call to action, key stakeholders in Nigeria’s auto sector have urged President Bola Tinubu to expedite the signing of the National Automotive Industry Development Plan (NAIDP) into law to revitalize Nigeria’s automotive industry.
The NAIDP aims to establish a comprehensive framework to boost local vehicle production, reduce import dependency, and enhance the competitiveness of Nigeria’s automotive industry.
Despite the widespread support, the NAIDP has faced delays in its legislative journey. Stakeholders are now urging President Tinubu to prioritize its enactment.
In a communique issued at the end of the maiden Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC) held recently in Lagos, critical stakeholders, including Automotive Manufacturers Association (NAMA), Automotive Local Component Manufacturers Association of Nigeria (ALCMAN) and many other stakeholders called for a review of the zero differentials between imports of fully built up (FBU) and Completely Knocked Down (CKD) commercial vehicles, which presently stands at 10 percent.
In the communique, stakeholders demanded that governments at all levels must patronage vehicles assembled in Nigeria to show example, conserve forex and create employment in support of assemblers who have invested heavily in Nigeria’s economy.
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“Via an executive bill, a law backing compulsory patronage of locally assembled/manufactured vehicles by all government functionaries, establishments, agencies and parastatals must be re-enacted and implemented.
“Government must simplify the CNG process, by harmonizing the workings of the Federal Ministry of Finance and that of the Nigeria Customs Service on the issue of gazetted duty free allowance on CNG equipment.
Speaking at the summit, Director General of National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin said the automotive industry is a significant driver of industrialization.
“The automotive industry is poised for growth, but we need the right policies in place. The NAIDP provides a strategic roadmap to harness this potential, fostering a robust and sustainable automotive sector.”
“By reducing import dependence and boosting local production, the NAIDP can help stabilize the naira and improve the trade balance. It also positions Nigeria as a potential automotive hub in Africa.”
In his own contribution, Director, Nigeria Automotive Manufacturers Association (NAMA), Mr. Kenneth Elekuba Anselm explained that by reducing import dependency and boosting local production, the NAIDP can help stabilize the naira and improve Nigeria’s trade balance.
“With the implementation of the NAIDP, we anticipate thousands of new jobs in manufacturing, logistics, and sales,” noted Anselm, “It’s a step toward reducing unemployment and improving livelihoods.”
As Nigeria navigates its path toward economic recovery and growth, the signing of the NAIDP could mark a pivotal moment.
Stakeholders remain hopeful that the plan will soon become law, unlocking the potential of Nigeria’s automotive industry and contributing to broader economic development.