The Director-General, National Automotive Design and Development Council (NADDC), Mr Jelani Aliyu, says challenges faced in the auto industry can be curbed with stakeholders’ collaboration.
Aliyu, in a statement on Thursday, said this at the Third Annual Edition of the West Africa Automotive Show (WAAS) in Lagos.
The director-general was represented at the event by a Deputy Director of the council, Dr Segun Omisore.
“We cannot deny that there are still challenges facing the industry, such as the influx of low grade used vehicles through our borders. We are faced with the depreciation of Naira and value/scarcity of foreign exchange.
“(Also) the absence of dedicated Automotive Funds by Nigeria’s financial institutions to provide low interest vehicle finance scheme for market development,” Aliyu said.
He listed the stakeholders to include, the Nigeria Customs Service (NCS), Nigeria Ports Authority (NPA) the Central Bank of Nigeria (CBN), Nigeria Automotive Manufacturers Association of Nigeria (NAMA) and the State Governments.
According to the NADDC boss, Nigeria is the biggest market in West Africa and the largest economy in Africa.
He said those who avoid Nigerian market due to some temporary challenges should have a rethink as Nigeria would rise above these challenges in the very near future.
“The investment incentives provided by the government, with the vehicle production capacity of over 400,000 units, which is still growing, the human resources capacity endowment in Nigeria and the Nigeria passion for Automobiles, makes Nigeria No 1 favourable Auto investment destination in Africa,” Aliyu said.
The NADDC boss said that the commitment of the Federal Government towards boosting the sector was evident through its recent approval of the new Auto policy 2023 to 2033.
While reiterating some benefits of the policy, he said it would among other things, position Nigeria’s automotive ecosystem as a leading centre for automotive production in Africa.
He said that the policy would provide a legal framework for the development of a competitive and sustainable automotive industry in Nigeria.
According to Aliyu, the policy will promote investment in the auto sector and fiscal incentives which includes additional tax relief for five years for Assemblers or manufacturers of automotive components and products.
He said it would also ensure 10 years for assemblers/manufacturers of electric vehicles and components used in electric vehicles and many other incentives provided.
“NADDC as a regulatory agency of the Auto Industry will continue to support all our stakeholders in the development of the industry by providing the necessary policy framework and the Investment Promotion incentives to support the industry,
”The new policy that was approved recently, provides policy direction and investment promotion incentives for the first time to electric and gas-powered vehicles development in Nigeria.
“It is our belief that industry players will make use of these incentives to compete favourably with their peers globally,” the NADDC boss said.