October 26, 2021

TrustTV

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FG to unlock N500bn auto investment

The federal government has reiterated its commitment to unlock the potentials of the auto industry with a view to support the N500 billion investments into assembly plants.

Director-General of the National Automotive Design and Development Council (NADDC), Mr Jelani Aliyu said as far back as 2019, the auto manufacturers had invested N500bn into assembly plants with installed capacity of 400,000 units of vehicles per annum.

Speaking at the 15th Motor Fair organised by BKG Exhibitions in Lagos, the DG said the investment had not yielded much results due to the challenges in the market and the lack of patronage from Nigerians.

He said despite that, the NAIDP is working but only needs more support to be more effective for investors to reap the fruits of their investment.

Aliyu also declared that the revised draft of the National Automotive Industry Development Plan (NAIDP) Bill is ready and will soon be sent to the National Assembly as an Executive Bill.

On electric vehicles, the NADDC boss said that was the next frontier for the auto sector.

According to him, the recent Executive Order on the patronage of locally assembled vehicles issued by the President would be fully implemented while being also replicated in states to support manufacturers.

“There is infrastructure on the ground. When you look at these vehicles here, these companies and more have invested well over N500 billion in their plants. So they believe in the Nigerian market.

“The reason why this question keeps coming up is because of lack of patronage. The ability to build these vehicles exists. It is not something that we are chasing; it is not something that will happen in the next five years or 10 years. It exists already. Nigeria and Nigerians would drive these vehicles and you would be surprised at the percentage of Nigerian made vehicles on the roads.”