Last Updated on April 26, 2024 by Silvy
Nigeria Aims for Domestic Vehicle Production Within a Decade
Nigeria’s government is launching a plan to become a major vehicle manufacturer within the next ten years. The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, unveiled the Nigerian Automotive Industry Development Plan at a recent stakeholder meeting.
The plan aims to leverage Nigeria’s existing resources, skilled workforce, and large domestic market to establish full-fledged vehicle production. This includes motorcycles, tricycles, sedans, and even heavy-duty trucks.
A key objective is to make vehicles more affordable for the average Nigerian citizen. The government believes the plan will significantly reduce car prices within the next decade.
The National Automotive Design and Development Council (NADDC) is proposing a five-year tax break for local vehicle assemblers as part of the plan’s financial incentives. This strategy aims to encourage investment and boost domestic component production.
A collaborative committee will oversee the plan’s implementation. It includes representatives from relevant ministries (Finance, Transport, Environment), industry groups (Manufacturers Association of Nigeria), and regulatory bodies (Nigeria Customs Service, Standards Organisation of Nigeria).
This initiative comes after a challenging period for Nigeria’s vehicle assembly industry. Production costs and weak demand for locally assembled cars have caused a decline in recent years.
The government hopes this new plan will revitalize the industry and achieve greater success compared to the 2014 Automotive Policy. Challenges like limited government support for domestic vehicles and weak regulations previously hampered progress.
Currently, Nigeria produces less than 10% of the vehicles it uses. The goal of this ambitious plan is to significantly increase domestic production and establish Nigeria as a key player in the African automotive industry.
