The quest for development of the local auto industry got a boost recently when the Director General of National Automotive Design and Development Council (NADDC), Malam Jelani Aliyu, visited Japan where he invited manufacturers in the sector to come to Nigeria and invest, media reports said.
While in Japan, he met key Japanese automotive manufacturers in Tokyo, Yokohama, Hamamatsu and Iwata, Japan (Toyota, Honda, Nissan, Mistsubushi, Isuzu, Suzuki and Yamaha.
The visit came at a time when the need for diversification in Nigeria is paramount to the country’s economy as the population continues to grow, and the Africa Continental Free Trade Area (AfCFTA) is also opening up Africa-wide opportunities for Nigerian automotive manufacturers.
Aliyu was at the meetings with the Nigerian Ambassador to Japan, Husaini Moriki and Chairman, House Committee on Industry, Dr Enitan Badru.
The discussions focused on achieving more investments by convincing the international companies to set up mega production and assembly plants in Nigeria.
It was learnt that the Japanese auto manufacturers welcomed as very encouraging the NADDC Director General’s assurance to them of a conducive operating environment in Nigeria following the involvement of KPMG in the review of the National Automotive Industry Development Plan {NAIDP}
Attracted by the implementation of the auto policy{NAIDP} by the NADDC over the past few years, some international brands are already assembling vehicles in Nigeria:, including Honda West Africa, Nissan/Stallion, Toyota/Elizade, Mitsubishi/CFAO, Suzuki/Boulos, Isuzu/Kewalrams and Yamaha/CFAO.
Commenting on the visit, Aliyu explained that the discussions with the Japanese auto makers were very fruitful, with strong potential for the various manufacturers to significantly increase their operations and market footprint in Nigeria and contribute at an even higher level to the growth and sustainability of the Nigerian Automotive space.
The Nigerian ambassador to Japan, His Excellency, Husaini Moriki, urged the Japanese companies to identify areas of focus that the companies would like the Nigerian government to intervene in for an even better business environment, especially now that the NAIDP and the Auto Policy are being reviewed by the NADDC.
The ambassador further commended the Director General for his efforts at reviving the Nigerian automotive industry and urged the Japanese companies to collaborate with the NADDC in the areas of training and up skilling of the Nigerian youths at the 18 Automotive Training Centres built by the agency across the country..
Aliyu reconfirmed that the NADDC has engaged the highly reputable international firm, KPMG, to support it in the review process of the NAIDP, so as to improve on it, especially with regards to the current pattern of global and regional automotive production and distribution.
KPMG, he disclosed, is getting good support from the AAAM {African Association of Automotive Manufacturers}.
“As soon as the draft policy is done by KPMG, it shall go as an executive bill to the National Assembly. The Senate and House Committees on Industry are giving their full support towards having this reviewed policy be backed by a legal framework, he said.”
The Chairman, House committee on Industry, Dr. Enitan Badru, discussed the importance of legislative support to the new Auto Policy, so that it gives the investors the confidence and stability to invest in Nigeria.
He also spoke on the importance of the vehicle finance scheme towards the purchase of those locally produced vehicles.
Speaking further, Aliyu highlighted some of the key areas receiving attention in the policy document under review, saying they are aimed at further boosting the financial advantages of local production/assembly.
They include clear import duty differential between locally assembled vehicles and those imported fully built, tax waivers, dedicated customs corridors/services, provision of single digit capital financing for both manufacturers and buyers, mandatory government patronage, all in favour of local production/assembly.
The NADDC DG affirmed that the meeting provided a veritable opportunity to get input from the multinational corporations so that the reviewed Auto Policy would clearly address concerns and requirements to make Nigeria a viable destination for investment/
This, he said, is in line with the modern pattern of global automotive production, components sourcing and finished product distribution.
