Investment Opportunities

  • Manufacture of vehicles ,especially low cost utility vehicles to serve the rural dwellers
  • Manufacture of auto components and spares
  • Manufacture of motorcycles and bicycles especially as government's target of 50% and 100%local content for motorcycle and bicycle respectively is yet to be met.

 

Investment Incentives

In addition to the general investment incentives available to investors, there are specific incentives for the automotive industry as described below:

  • Import duty for CKD for vehicle assembly is 0% while that of fully built up units is 35%;
  • Import duty for SKD assembly is 10%;
  • Import duty for automotive assembly operation equipment is 0%;
  • The Nigerian government has mandated all its ministry, agencies and parastatals to patronize the products of local automotive assembly plants;
  • The National Automotive Design and Development Council has established an Auto Development Fund (ADF) to provide soft loan for companies that will produce auto parts;
  • All new entrants into the automotive assembly industry are given pioneer status;
  • The government through the Bank of Industry (BOI) provides long term loans to industrial projects.

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