Stakeholders brainstorm amid lingering auto policy

Stakeholders in the automotive industry converged in Lagos this week to chart a way forward for the auto industry development. This is coming amid the delay in the implementation of the auto policy which has suffered under the previous administrations. Daily Trust reports that the National Automotive Design and Development Council (NADDC) convened the stakeholders’ […]

Stakeholders in the automotive industry converged in Lagos this week to chart a way forward for the auto industry development.

This is coming amid the delay in the implementation of the auto policy which has suffered under the previous administrations.

Daily Trust reports that the National Automotive Design and Development Council (NADDC) convened the stakeholders’ meeting to gauge inputs and contributions of industry players to efforts at repositioning and strengthening the local automotive industry which is the core mandate of the NADDC.

But the lingering delay in the implementation of the National Automotive Industry Development Plan (NAIDP) also known as auto policy remains a matter of concern to stakeholders.

The NAIDP provides the framework for operators in the industry. It is a legal instrument that provides the direction for potential investors. It is an instrument providing legal backing for the operators. Therefore, the potential investors, especially the original equipment manufacturers (OEMs), have been skeptical about putting their resources in an industry without a clear-cut policy.

The 8th Senate led by Senator Bukola Saraki had passed the auto policy bill but the former president refused to assent to it citing conflict with some existing trade regulations. It was meant to be redrafted as an executive bill and sent back to the National Assembly for legislative work.

The last administration promised to send it back before the expiration of its tenure but this was not achieved until a new government came to power. 

Stakeholders say without the auto policy, the necessary investment cannot be realised. The industry has suffered undue drift over the absence of the auto policy. Ghana had attracted reputable OEMs on account of implementing the auto policy, which was passed within a year while Nigeria’s version of the policy is still plagued with uncertainty. 

The NAIDP however took the centre stage of the extensive deliberations as all stakeholders stressed the need for legislative endorsement of the policy to ensure its sustained functionality and proper implementation.

Minister of Industry Trade and Investment (FMITI), Doris Nkiruka Uzoka-Arite, who joined the discussion virtually urged the participants to target the initiative of the forum at propelling the nation to the global manufacturing pedestal.

The director general of NADDC, Joseph Osanipin, who assumed office barely two months ago stated that the NAIDP is a critical pillar of the government’s effort to transform the automotive sector and position it as a key driver of economic growth and job creation.

He however did not say when the NAIDP would be sent to the National Assembly for the requisite legislative action.

He said, “The plan (NAIDP) is designed to address the key challenges facing the sector such as low production level, insufficient local content and limited access to financing.”

Osanipin maintained that the NAIDP 2023 is a comprehensive and ambitious plan that seeks to align local policies with AfCFTA in such a manner that would allow the industry to compete favourably on the continental and eventually global level.

He said the policy would ensure sustainability and environmental responsibility as it offers incentives in the area of CNG and electric-powered vehicles.

Speaking at the session, the chairman of Nigerian Automobile Manufacturers’ Association (NAMA), Mr Bawo Omagbitse, said the manufacturers would work closely with NADDC and other relevant authorities for proper implementation of the auto policy, adding that NAMA would develop internal guidance system to ensure the members operate in accordance with the rules and regulations provided in the NAIDP document.