Auto Policy to incorporate EV, CNG-powered vehicles – FG

The Federal Government said it is reviewing Nigeria’s automotive policy to accommodate emerging technologies such as electric vehicles (EVs), compressed natural gas (CNG)-powered vehicles, and other alternative energy solutions.

Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, disclosed in her goodwill message at the 30th anniversary of Motoring World International.

This is coming amidst the delay in the passage of the National Automotive Industry Development Plan (NAIDP) also known as Auto Policy.

SPONSOR AD

The auto policy bill which was passed in the Eighth National Assembly but the presidential assent was withheld by the then President Muhammadu Buhari, has suffered over a decade of delay.

It provides a legislative and regulatory framework for prospective investors in the industry.

Daily Trust learnt that the draft is now being reviewed for onward passage to the National Assembly for the requisite legislative process.

Represented by Samuel Adetoro, Desk Officer for Auto Industry at the Ministry, the Minister however stressed that the ongoing review is designed to align the country’s automotive ecosystem with global trends in sustainable mobility and industrial development.

According to the minister, the automotive industry remains a critical pillar of Nigeria’s industrialisation agenda and has the potential to generate significant employment opportunities, attract investments, deepen local manufacturing, and reduce dependence on imported vehicles.

She noted that while the existing automotive policy provided a framework for the growth of vehicle assembly operations in the country, changing global realities and advancements in technology have made it necessary to update the policy to reflect current and future transportation needs.

“The Ministry is also working closely with the stakeholders, such as what we are doing today, on the review and the strategy of the National Automotive Industry Development Framework to ensure that it responds effectively to emerging realities, including electric mobility, compressed natural gas (CNG) vehicles, automotive software development, smart manufacturing and green transportation technologies.

“As the world transitions towards cleaner and more sustainable mobility solutions, Nigeria must position itself strategically to take advantage of this opportunity.”

The minister explained that the government is seeking to create an enabling environment that will encourage local production and assembly of alternative-fuel vehicles.

She added that the policy review would also focus on strengthening local content, promoting technology transfer, enhancing research and development, and improving the competitiveness of Nigerian automotive manufacturers.

She emphasised that collaboration between government and the private sector would be essential in building a robust automotive ecosystem capable of meeting domestic demand and serving regional markets under the African Continental Free Trade Area (AfCFTA).

More funding for road safety

Former Corps Marshal/CEO of the Federal Road Safety Corps (FRSC), Boboye Oyeyemi urged the Federal Government to adopt a long-term and consistent automotive industry policy that prioritises local value creation and domestic manufacturing, rather than the one that focuses on revenue generation from vehicle import duties.

Oyeyemi, who was the chairman of the occasion, also called for more funding for the FRSC, saying no amount is too much to fund road safety in Nigeria.

He stated that Nigeria possesses one of the largest automotive markets in Africa, but regretted that the country failed to fully harness its enormous potential due to policy inconsistencies and weak support for local manufacturing.

According to him, the country’s population of over 240 million people, vehicle fleet estimated at 21 million, road network spanning more than 204,000 kilometres and the growing urban population presented significant opportunities for vehicle assembly, component manufacturing, automotive financing, electric vehicle infrastructure and related services.

Oyeyemi who is also the President of Chartered Institute of Logistics and Transport (CILT), noted that despite these advantages, the country’s automotive manufacturing sector was still underdeveloped and heavily dependent on imported used vehicles.

According to him, investors had entered and exited the sector, while several assembly plants had struggled to remain operational due to policy uncertainty.

He said: “Nigeria’s domestic automotive manufacturing industry remains embryonic, dependent on the fairly used vehicles, the portable components that are manufactured locally, are struggling to develop the supply chain depth, the technical workforce, and the policy consistency that would make local automotive manufacturing genuinely competitive.

“The automotive policy architecture, the national automotive industry development plan, the delivery frameworks, the assembly plant licensing regime, have been constructed and reconstructed multiple times without producing a sustained industrial momentum that Nigeria of this size requires.

“Investors have come and gone, assembly plants have opened and closed, and the Nigerian consumer continues to drive imported vehicles, mostly second-hand, often poorly maintained, frequently unsafe, when they should be driving assembled Nigeria to international standards.”

He commended Motoring World for consistently advocating policies aimed at strengthening the automotive sector over the last three decades, describing the publication as a major stakeholder in the industry’s development.

Besides, in his keynote address, the Director-General, National Automotive Design and Development Council (NADDC), Joseph Osanipin, called for stronger collaboration between the government, industry stakeholders and the media to accelerate the country’s automotive industrialisation and position Nigeria as a leading automotive manufacturing hub in Africa.

Osanipin, who was represented at the occasion by Director, Press and Public Affairs, Susan Bisong-Taiwo, said the future of mobility was being reshaped globally by electric vehicles, alternative fuels, smart manufacturing and green transportation technologies.

He stressed that Nigeria must not be left behind in the transition.

According to him, the council was implementing a range of initiatives aimed at transforming Nigeria from a vehicle-consuming nation into a competitive automotive manufacturing and innovation centre on the continent.

He listed key focus areas of the council to include electric vehicle development, Compressed Natural Gas (CNG) conversion programmes, local content promotion, automotive component development, skills acquisition and strategic partnerships across the industry.

UPDATE NEWS:

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder, click here to find out how it works.