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Home NEWS Nigeria Government Restates Support for Auto Industry Investors in Nigeria

Government Restates Support for Auto Industry Investors in Nigeria

The Federal Government has restated its support for the African Association of Automotive Manufacturers (AAAM), South Africa and other automobile investors.

The Government said it would continue to provide an enabling environment for doing business in Nigeria.

The Minister of Industry, Trade and Investment, Dr Nkiruka Anite, said this at a meeting with AAAM and Nigerian Automotive Manufacturers Association (NAMA) in Abuja.

Anite urged AAAM to reopen its business in the country, saying the country was ready.

According to the Minister, President Bola Tinubu-led administration is keen at driving industrialization in the country.

“We want to see your presence here, we know you shut down your plants because some things were not happening, but we want you to reopen your plants.

We want to assure you that those things are happening now, so have no fear whatsoever. If you have foreign exchange challenge to import your raw materials. we have raw materials here.

Tell us what you need, and I am sure our components parts here will give it to you, if you have standard specifications, I am sure our SON will give you the support.

If you have issues with certain policy implementation on trade policy, we are here. This is a working government. We do not just issue policies. We work,’’ she said.

On finance, the Minister said there were funds available for the manufacturers, and the President also pledged to ensure more funds were available for manufacturers to access.

Anite said: “for every manufacturer, this is a good time to produce in Nigeria. There are difficulties, but that is why we are here to solve them.

“Whatever issue we have in Nigeria, we have a local solution to it, and we are proud of that.

“So do not be afraid, sit with the industry and see what we have, in areas you need more clarification we will be happy to provide that.

“What we are saying to you is that you have to produce here because we do not want to continue to import.’’

Anite reiterated the desire of the government to support every manufacturer in the country, both local and foreign with policies, incentives, and every support necessary to thrive.

She said: “Yes the economy is challenging, but it is through the challenges that you will have the opportunities.

“So, I encourage you to invest. We will make sure we continue to create the enabling environment to support industrialization and the growth of our economy.”

According to the Minister, there is a huge demand for vehicles, which has led to increased importation of already used vehicles in the country.

Anite, therefore, restated the need for us to increase production of Nigerian made vehicles and at an affordable cost to reduce the importation of used vehicles into the country.

“If the cars we produce are not cheap enough and do not meet our demand, then there is no way we can stop the importation of vehicles, and that is why we have started this journey.

One of the ways to reduce cost effectively is to make sure that we source our materials locally and we (government) will give you all the support that is necessary,’’ she said.

Martina Biene, the President of AAAM, commended the efforts of the government geared towards the implementation of the Nigerian Automotive Industrial Development Plan (NAIDP).

“The Federal Government of Nigeria has made huge effort and huge steps to have an automotive policy.

We have been working closely with the Director-General of National Automotive Design and Development Council (NADDC), Joseph Osanipin, to assist what we know is obtainable in other African countries.

This policy is not ready as it needs to go and be passed into law before its implementation. And we have been very pleased with what we saw.

If this policy is implemented, it will see huge opportunities for the new car market in Nigeria, and that of course, we want to be a part of,’’ Biene said.

Earlier, the NADDC Director-General said the automotive industry could contribute a lot more to the economy of the country.

We can do that by developing the local content and ensuring that we produce more, we can employ more

Since we started this journey, we have seen the commitment of all the stakeholders , we have seen people coming together, and you can see the manifestation by our partners, the AAAM.

They are here because they have seen what we are doing differently, and they have seen the commitment of the present administration, and this gives us joy and assurance and encourage us to do more.

We are going to do more in the area of training, pushing for the implementation of the NAIDP, ensuring that we increase the percentage of local content in our vehicles,” Osanipin said.

Dr Innocent Chukwuma of Innoson Group reiterated the importance of synergy in driving the automotive industry for the benefit of the country.

“Synergy between the various stakeholders is key. It is a way forward in driving the sector for the benefit of our nation,” he said.

Also, Anslem Ilekunba, the Coordinator /Liason Association of Local Components Manufacturers of Nigeria (ALCMAN), said component parts were the building block of the auto sector.

Ilekuba decried the huge importation of spare parts in the country, which in many cases were discovered to be substandard.

He also urged the use of local content in car manufacturing, saying it would encourage the local producers and boost our economy.

The Comptroller-General of Nigeria Customs Service, Bashir Adeniyi, represented by the Comptroller in charge of Tariff, Mohammed Yusuf, said the event was timely and had a multiplier effect for the country.

While reiterating the commitment of the service to the industry, he said that when the NAIDP was implemented, it would address several bottlenecks in the sector.

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