Being extract from a paper presented by Engr. Aminu Jalal, FNSE, FNIM, FNautoEI, Director-General NADDC at this year’s Manufacturing & Equipment Expo Nigeria on Thursday March 16, 2017 at Landmark Event Centre, Victoria Island, Lagos.
The National automotive policy was re-launched in 2013 and a definite plan for implementation, NAIDP, was announced with very clear fiscal guidelines and programs to run, initially for 10 years with periodic properly phased reviews.
Its main objective is to bring back vehicle assembly operations and develop local content, thereby making Nigeria a vehicle manufacturing nation.
ECOWAS Ministers of Industry have adopted the automotive industry as one of its four priority industrial development areas. The others are agro-processing, pharmaceuticals and construction. The ECOWAS Commissioner for Industry is now developing a strategy for the development of the automotive industry in West Africa.
The plan objective is to have vehicle assembly operations with increasing local content incorporation. This may be achieved in the assembly stages below. The transition from one stage to another should not exceed 12 months. (i.e. a maximum of 36 months from start of SKD 2 to CKD operations (including 12 months set-up period)):
The response to the policy so far has exceeded our expectations. The current status of implementation of the policy is that the 14 existing assembly plants like VON, PAN, Innoson, Anammco and Leyland-Busan have started assembling new products in 2014, and new ones were established, assembling the following:
• Nissan, IVM, Peugeot, Hyundai, Honda, Kia, VW, Ford, Changan, GAC, Cars, SUV and light commercial vehicles;
• Hyundai, IVM, Nissan and Ashok-Leyland buses;
• MAN, IVM, Sino, Shacman, MAN, FAW, Aston, Foton Forland and Isuzu Trucks; and
• Proforce armoured vehicles.
The total installed capacity is over 300,000 units per annum.
Our emphasis has now shifted to the development of automotive local content.
Nigeria has the market to sustain an automotive industry, a potential of one million vehicles annually with ECOWAS and Central African countries as additional market,.
The Nigerian automotive industry development plan is our best chance of developing this vital industry. The response by investors in vehicle assembly has so far exceeded our expectations. We are now concentrating our efforts in local content development.
The industry is long-term in nature and requires policy continuity and consistency. This is already assured as the new government has decided to continue with the policy. Nigeria is therefore on track to becoming a vehicle manufacturing nation.