Nigeria’s automobile industry received a boost with over $1billion investments from renowned auto manufacturers in 2019, thereby lifting capacity to at least 408,870 vehicles yearly.
The manufacturers, which include Honda, Peugeot, Innoson, and Mitsubishi among others, have also created employment for about 4,782 Nigerians.
The Director-General, National Automotive Design and Development (NADDC), Jelani Aliu disclosed this in his message to the ongoing review of the Nigerian Automotive Policy Bill, & Nigerian Automotive Industry Development Plan (NAIDP), in Abuja.
He also said the NADDC has put in place a N5billion vehicle finance package to assist Nigerians buy new cars, repayable at agreed terms instead of the current craze of patronising fairly-used cars, which has continued to drain the nation’s foreign reserves, and creating jobs for other countries.
He said: “Nigerians can now put down say, 10 percent of the value of cars they want to buy and spread payments for over five years. This arrangement has been concluded with some selected banks in the country with the support by the Central Bank of Nigeria (CBN). If we go this way, our citizens will also begin to enjoy ridding new vehicles.”
The participating banks includes Zenith, Wema and Jaiz.
Although government had banned vehicle importation through land borders, however, the Area Controller, Port Terminal Multipurpose Limited (PTML) Command, Nigeria Customs Service, Mrs. Florence Dixon, said the border closure has triggered increase in vehicle importation through the Lagos seaport to about 35 per cent as at third quarter 2019, without giving details.
This means that more Nigerian’s are still buying used vehicles, with the sale of brand new locally manufactured vehicles hitting only 11,000 units in 2019, up from the 10,000 recorded a year earlier
To this end, Aliu solicited the support of stakeholders to provide concrete recommendations that will be captured in the proposed new NAIDP bill to be forwarded to the National Assembly for passage.
Declaring the dialogue open, the Minister of Industry, Trade and Investment, Niyi Adebayo, said the Federal Government in efforts to implement the Nigerian Recovery and Growth Plan (NIRP), approved the new auto development plan to transform the Nigerian automotive industry and attract Investment into the sector.
He said it was however, worrisome that in 2016, automobiles and automotive components importation gulped about $8 billion, which should never be allowed any longer.
The minister charged participants to work in synergy and come up with better recommendations that could be put forward as concrete plan or bill to reverse the trend.
Earlier in his remarks, the Chairman of the NADDC Board, Senator Osita Izunaso, told participants to contribute immensely and come up with relevant recommendations that could be put together as an Executive Bill that will be passed to the National Assembly.