FG Will Patronise Only Local Vehicle Assemblers With Robust After-sale Service

Bennett  Oghifo

Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite has said the federal government would patronise only auto assemblers with robust after-sale service.

The minister stated this, virtually, at a stakeholders’ engagement forum on the implementation of the Nigerian Automotive Industry Development Plan organised by the National Automotive Design and Development Council (NADDC) in Lagos during the week.

The meeting was in line with the mandate of the NADDC to position the Nigeria Automotive Industry as one of the leading automotive manufacturing nations of the world, the NADDC and major automakers met to brainstorm on possible ways of  promoting the Nigerian Automotive Industry.

The National Automotive Industry Development Plan, (NAIDP) took the centre stage of the extensive deliberations  as all stakeholders stressed on the need for legislative endorsement of the policy to ensure its sustained functionality and proper implementation.

The minister said the lack of robust after-sale services was the reason many government agencies are not buying Nigeria-assembled vehicles despite the Executive Order 5 mandating them to give preference to automobiles produced in the country.

Experts and other stakeholders spoke on how to accelerate the ongoing legislative process on auto industry investment, as well as taking advantage of opportunities offered by African Continental Free Trade Area (AfCTA) for Nigeria’s auto industry development.

Uzoka-Anite commended all indigenous automobile assemblers for believing in Nigeria, and stressed the need to pay special attention to after-sale support in order to remain in business.

She urged the participants to target the initiative of the forum at propelling the nation to the global manufacturing pedestal.

She said, “The auto Industry is key to achieving economic diversification, and this is in line with the mandate of the ministry to ensure full diversification and full industrialisation of the economy.”

To facilitate market access and market expansion, she assured of engagement with different economic players to ease the difficulties in doing business and allow local manufacturers to participate in the AfCTA area to export their products.

The Director General NADDC Mr Joseph Osanipin in his  welcome address, 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.

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

Osanipin said the NAIDP 2023 is a comprehensive and ambitious plan that seeks to align local policies with AfCTA 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.

Osanipin urged all local auto assemblers to come together to build a formidable industry, saying, “I want the Nigerian Automotive Manufacturing Association (NAMA) to self-regulate. We can agree on quality and what should make an assembly plant, among other things.”

He said a number of assembling companies had expressed interest in joining NAMA, adding that he would want everyone on board to revitilise the industry.

The chairman of Nigerian Automobile Manufacturers Association (NAMA), Mr. Bawo Omagbitse on behalf of the stakeholders expressed their appreciation to NADDC for putting up the forum.

He reiterated the eagerness of NAMA to work closely with NADDC and other relevant authorities for proper implementation of the Auto Policy, adding that NAMA would develop an internal guidance system to ensure the members operate in accordance with the rules and regulations provided in the NAIDP document.

The stakeholders present lamented that the prolonged delay in the enactment of the auto industry act was holding back the development of the sector.  

Many local auto assemblers have complained of poor sales and lack of patronage of their products by ministries, departments and agencies of the government.

While Oguamalam Chukwura of AfCFTA gave a lecture on the benefits creating a single market in Africa would have for Nigeria’s auto sector, Advisory Manager at KPMG Tobi David spoke of the various components of the NAIDP 2023 awaiting legislative stamp; while a former acting DG of NADDC Luqman Mamudu focuses on the challenges of implementing the policy and the way forward.

The auto experts and others agreed on the need to waste no further time in making the auto industry law a reality.

They also recommended the setting up an implementation committee for the NAIDP, project management office and a two-yearly review of the progress being made.

Other participants at the meeting included  representatives from Motorcycle Manufacturers Association of Nigeria (MOMAN), G.M Motors, Anammco,  Innoson Vehicle Manufacturing ltd, Proforce, JET Motors, Mikano Motors, Nord Motors, Stallion, Perfection Motors, Toyota Nig. Ltd, Honda, CIG Motors, Dangote Sinotruck, Coscharis Motors, GAC, Kewalram, Dana Motors, VON Auto, Lanre Shittu Motors, CFAO, among others.