Director General of the National Automotive Design and Development Council (NADDC), Mr. Jelani Aliyu MFR, has explained that the recently approved Nigeria Automotive Policy will provide a better operating environment for auto industry players in the country and engender the Industry’s growth.
The DG made this remark in a paper presented on Tuesday at the on-going West Africa Automotive Show (WAAS) holding at the Landmark Event Centte in Victoria Island, Lagos.
According to the Director General who was represented at the event by a Deputy Director of the Council, Segun Omisore,
“The federal government has recently approved the new Auto policy 2023 to 2033, the objectives of the new policy include, among others; is to provide a legal framework for the development of a competitive and sustainable automotive industry in Nigeria.
“Create an environment that allows existing Assembly Plants to survive, grow and attract other original equipment manufacturers, and local content suppliers Facilitate transfer of technical know-how and technological skills for the development of the automotive industry.”
Jelani also noted that the new Automotive policy will “Position Nigeria’s automotive ecosystem as a leading center for automotive production in Africa.”
He added that the “Policy promotes investment in the Auto Sector and fiscal incentives which includes additional tax relief for 5 years for Assemblers or manufacturers of automotive components and products, 10 years for assemblers/manufacturers of electric vehicles and components used in electric vehicles and many other incentives provided.”
The NADDC boss assured that on the part of the Council as a regulatory agency of the Auto Industry, “We 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” as the new policy… provides policy direction and investment promotion incentives for the first time to electric and gas-powered vehicles development in Nigeria.”
Acknowledging that there are challenges being faced by industry players, like
influx of low grade used vehicles through our borders, the depreciation of naira value/scarcity of foreign exchange and the absence of dedicated Automotive Funds by the financial institutions in Nigeria to provide low interest vehicle finance scheme for market development, Jelani expressed optimism over the future of the industry.
Commending the organiser of the event, BtoB Event, he added that “The importance of this Show cannot be overemphasized. I want to congratulate the Managing Director of BtoB Events Ltd for coming up with this event, I assure you of the council’s immense support to this great event.”