Critical stakeholders and experts in the Nigerian automobile industry have identified several means by which the sector in the country could attain development and growth.

Various speakers at the one-day event of the Nigeria Auto Industry Summit (NAISU), organised by Nigeria Auto Journalists Association (NAJA), held in Lagos over the weekend, mentioned unambiguous legal frame work and sustainable infrastructure development as part of measures to addressing critical challenges affecting the sector.

Participants at the summit also called on the Federal Government through its ministry and agencies to create a conducive environment for operators for the expansion of their businesses.

The summit with the theme: ‘Reviving Nigeria’s Economy Through The Auto Industry,’ attracted professionals from public and private sectors like Ministry of Industry and Trade Investment, National Automotive Design and Development Council (NADDC), Nigeria Customs Service (NCS) and the Nigeria Automotive Manufacturers Association (NAMA), among others.  

Doris Uzoka-Anite, the Minister of Industry, Trade and Investment, in her presentation assured stakeholders of government is committed to creating an unwavering enabling environment for the automotive sector to thrive.

Uzoka-Anite who was represented at the occasion by Mrs. Olumuyiwa Ajayi-Ade, Deputy Director, Industry Development Department, said the present government since coming onboard had introduced several policies and initiatives aimed at supporting the sector.

She, however, acknowledged challenges of inadequate access to finance, limited local content in vehicle production and policy summersaults in the system as some of the prevailing problems that needed to be addressed.

She declared that the government was totally committed to working with industry stakeholders to overcome challenges and create a conducive environment for all.

She reiterated that the automotive sector holds the key to reviving Nigeria’s economy and positioning the nation as a hub for automotive manufacturing in Africa.

She said: “With the right policies, investments and collaborative efforts, we can transform this sector into a significant driver of economic growth and development.

“I urge all stakeholders; government agencies, private sector players, financial institutions, and development partners to join hands in this endeavor.

“Together, we can build a vibrant and sustainable automotive industry that will drive Nigeria’s economic revival and ensure a prosperous future for all.”

The minister also unveiled the plan by the Federal Government to partner with global automotive companies and the establishment of local research and development centres, aimed at facilitating the transfer of cutting-edge technologies to Nigeria.

She declared that this would not only enhance the nation’s manufacturing capabilities, but also promote innovation in other sectors.

She said: “The development of the automotive industry will spur the growth of other related industries such as steel, rubber, plastics, and electronics. This industrialisation will diversify our economic base, reducing our dependence on oil and making our economy more resilient to global market fluctuations.

Also, Joseph Osanipin, Director-General, National Automotive Design and Development Council (NADDC), in his presentation at the summit, lamented the nation’s reliance on importation of vehicles by the various automobile companies.

Osanipin insisted that this singular act was putting much pressure on foreign exchange market and hindering job creation.

He posited that it was pertinent for the nation to strive towards a future where it could become not just a consumer of automobiles, but also a producer of high-quality automobiles.

The NADDC boss pointed out that the percentage of auto industry contributions to the Gross Domestic Market (GDP) and job creation was still very low compared to other African countries like Morocco and South Africa.

He enjoined interested individuals and corporate bodies to invest in local production of vehicles and spare parts, rather than consistent importation of such.

According to him, NADDC was committed to supporting research and development initiatives that would lead to the creation of new technologies and solutions tailored towards the growth of the Nigerian market.

He said: “We need to support locally-made vehicles. By choosing made-in-Nigeria cars, you are investing in the future of our nation. Let us consume what we produce and produce what we consume.”

Also speaking, Wale Adeniyi, Comptroller-General of the Nigeria Customs Service (NCS), said the proliferation of used cars in Nigeria was further weakening the naira and straining the local manufacturers in the country.

Represented by Kenny Daniyan, Area Controller of PTML Customs Commands, Adeniyi bemoaned the domination of the Nigerian car market by used vehicles imported all across the globe.

He posited that these vehicles are often cheaper and more affordable than their brand-new counterparts and sometimes the locally assembled vehicles.

He explained: “These abundant and affordable used vehicles dampen demand for new locally assembled cars, and hinder growth in the domestic industry.”

According to Adeniyi, the NCS currently enforces an import prohibition on vehicles older than 15 years as contained in schedule three of the common external Tariff, from entering Nigerian car markets as a way to reducing the import of used cars.

He emphasised that this was tailored at further supporting and encouraging growth in the Nigerian automotive industry.

Also, Mr. Remi Olaofe, Executive Director, Nigeria Automotive Manufacturers Association (NAMA), called on the government to revive the tyre, battery and glass manufacturing as a precursor to reviving local manufacture of key components.

Earlier, Mike Ochonma, Chairman, Nigeria Auto Journalist Association (NAJA), in his welcome address, said the summit formed part of NAJA’s contributions to the development of the sector.