In a bid to transform Nigeria into a significant player in the vehicle manufacturing sector, Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, has announced ambitious plans.
Speaking at the launch of the Nigeria Automotive Industry Development Plan, attended by both public and private sector stakeholders, Uzoka-Anite outlined the goal of positioning Nigeria as a fully-fledged vehicle manufacturer within the next decade.
“We have the resources, skills, and market to produce our own vehicles,” stated Uzoka-Anite. “With this comprehensive plan, we envision Nigeria manufacturing a range of vehicles, including motorcycles, tricycles, sedans, and heavy-duty trucks, within the next 10 years. Our aim is to make vehicle ownership more affordable for the average Nigerian.”
Joseph Osanipin, the Director-General of the National Automotive Design and Development Council, highlighted a key policy proposal to support this plan: a five-year tax holiday for vehicle assemblers operating in Nigeria. Osanipin emphasized the importance of backward integration and component production through fiscal initiatives.
The implementation committee for the Automotive Industry Development Plan includes representatives from various government ministries and agencies such as Finance, Transport, Environment, Industry, Trade, and Investment, as well as the Nigeria Customs Service, the Manufacturers Association of Nigeria, and the Standards Organisation of Nigeria.
Despite previous challenges faced by Nigeria’s vehicle assembling industry, including rising production costs and weakened demand, the government remains committed to revitalising the sector. The industry, estimated to be worth approximately N302 billion, experienced a decline in activities, with capacity utilization dropping and layoffs occurring.
The Federal Government’s Automotive Policy of 2014 aims to boost local content and facilitate vehicle financing schemes. However, challenges such as the government’s preference for imported vehicles and inadequate regulations continue to hinder the industry’s growth. Currently, Nigeria produces less than 10 percent of the vehicles used domestically.
