The National Automotive Design and Development Council (NADDC) has pledged to push for zero duty on imported raw materials and stronger policies to protect locally manufactured vehicles as part of efforts to revive Nigeria’s automotive industry.
The commitment followed a familiarisation and listening tour of Innoson Vehicle Manufacturing Company (IVM), Nnewi, and Kojo Motors, Umunya, in Anambra State, by the NADDC Governing Board and management.
The delegation, led by the Board Chairman, Chief Emma Eneukwu, OFR, and the Director-General/Chief Executive Officer, Otunba Oluwemimo Joseph Osanipin, visited the two companies less than 24 hours after commencing the nationwide tour in Lagos.
The exercise was aimed at assessing the manufacturers’ production capacity, technical capabilities and investments, while obtaining first-hand information on the challenges affecting their operations.
Speaking after inspecting the Innoson facility, Osanipin said the company’s investment and production processes had dispelled misconceptions that it merely assembled imported vehicles.
“We have seen how Innoson vehicles are built from scratch, and that is why we brought all the members of the Board and people who hitherto thought the company merely assembled vehicles. You can see the level of investment here,” he said.
He said the Council also inspected Innoson’s new facility for electric vehicles, compressed natural gas (CNG) vehicles and heavy-duty trucks, describing the investment as consistent with the Federal Government’s clean-energy agenda.
However, Osanipin said high tariffs on imported raw materials and inadequate protection against imported vehicles remained major challenges confronting local manufacturers.
“We have heard their complaints about high tariffs and how their investments are not protected. We will take the complaints to the right quarters and canvass for zero duty on the importation of their raw materials,” he said.
According to him, manufacturers currently pay duties on imported steel and other inputs, with the additional costs ultimately reflected in the prices of locally produced vehicles.
He said local manufacturers were further disadvantaged when fully built imported vehicles received favourable duty treatment.
“A situation where importers of fully built vehicles bring them in at zero duty affects the patronage of these vehicles that are manufactured in Nigeria,” Osanipin said.
He assured manufacturers that NADDC would present their concerns to the relevant authorities and advocate policy measures to improve their competitiveness.
Earlier, Eneukwu called for a stronger automotive industry law that would empower NADDC to effectively regulate the sector, curb the influx of used and substandard vehicles and create a more favourable operating environment for local manufacturers.
He also stressed the need to deepen local content, technology transfer and skills development to move Nigeria beyond vehicle assembly to genuine automotive manufacturing.
At Innoson, the company’s Chairman and Chief Executive Officer, Chief Innocent Chukwuma, CON, called for greater government support for CNG and electric vehicles, particularly in response to rising energy costs and the need for cleaner transportation.
Chukwuma also urged the government to review vehicle import-duty concessions, which he said put local manufacturers at a disadvantage.
At Kojo Motors, the Executive Director, Mr Chinedu Oguegbu, said the company had operated in the automotive industry for more than three decades and developed partnerships with global Original Equipment Manufacturers.
He said its partnership with Yutong had enabled it to assemble the global manufacturer’s vehicles in Nigeria, while its OMAA brand was being produced locally with plans for international expansion.
The NADDC delegation commended both companies for their investments, particularly in EV and CNG technology, and reaffirmed the Council’s commitment to promoting local content, technology development and sustainable growth in Nigeria’s automotive industry.
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