The National Automotive Design and Development Council has dismissed insinuations that the Federal Government may have jettisoned the National Automotive Policy owing to discontented situation of the Nigerian economy at the moment.
The NADDC Director General, Engineer Aminu Jalal said the insinuations are baseless and unsubstantiated.
Jalal said the Federal Government has already resolved to substantiate the policy initiative as part of her efforts to empower the automotive industry as viable alternative to oil.
Jalal spoke in Lagos when he delivered an audio visual driven thesis titled: “How to make Nigeria Africa’s leading automotive hub,” at the just ended Manufacturing & Equipment Expo, Nigeria 2017. He said: “It is already assured the new government will continue with the policy, and the response so far has exceeded our expectations. Our emphasis as it is has shifted to the development of automotive component.”
According to him, five South African companies have indicated interest in establishing component manufacturing plants in the country, just as some Chinese investors have similarly indicated interest in exploring opportunities in the nascent auto industry.
The Nigerian automotive industry is designed to ensure survival, growth and development of automotive manufacturing, using local human and material resources with a view to enhancing the industry’s contribution to the national economy, especially in the areas of transportation of people, goods and services.
Jalal said no fewer than 14 assembly plants, with more being established, have since 2014 began operations, assembling new products, including cars and SUVs like Nissan, IVM, Peugeot, Hyundai, Honda, Kia, Volkswagen, Ford, Changan and GAC. Whilst in the bus and truck category, Hyundai, Ashok-Leyland, MAN, Anammco, Leyland-Busan, IVM, FAW, Sino, Shacman, Aston, Foton, Forland and Isuzu are among notable brands currently being produced at various facilities in Nigeria.
This is in addition to Proforce armoured vehicles wielding installed capacity for over 300,000 units annually, Jalal affirmed. Jalal said these plants, in 2015, contributed 75,000 units of vehicles, including concessionary imports, representing 75 per cent of estimated 100,000 new vehicles that made it into the market during the period under review. He also added that the industry is long-term in nature and requires policy continuity and constituency.
The NADDC helmsman said Nigeria is on track to becoming a vehicle manufacturing nation. “One of the convictions of the National Automotive Policy is to have vehicle assembly operations with increasing local content absorption that could evolve from one stage to another, for instance from SKD2 (semi-knocked down) to CKD (completely knocked-down) operations without exceeding 12 months or maximum 36 months including a set-up period of 12 months.”
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