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By Moses Akaigwe
The Federal Government has identified the automotive industry as a major contributor to the efforts being made to achieve economic diversification, even as it urged local automakers to put in place robust after-sales support networks for their brands in order to ensure patronage.
The Minister of Industry, Trade and Investment Dr. Doris Uzoka-Anite who said this at an event on Wednesday in Lagos, assured that in order to facilitate market access and expansion, her ministry would engage with different players in the economy to ease the difficulties they encounter in their sector.
This, according to the minister, would enhance competitiveness and allow local manufacturers to participate in the African Continental free Trade Area (AfCTA) to export their products.
R-L…Benneth Ejindu of ANAMMCO; Frank Nneji of TSS; {both NAMA board members}; representative IPI Ltd, Ikotun, Lagos;; Shola Afolayan of Coscharis Ford; and another stakeholder.
Dr. Uzoka-Anite spoke via Zoom at a stakeholders’ meeting convened by the new Director General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, to present the 2023 Nigerian Automotive Industry Development Plan (NAIDP) to stakeholders,
The minister urged the participants to take advantage of the forum to strive towards taking nation’s auto industry to the global manufacturing pedestal.
She said “the auto Industry is key to achieving economic diversification, and this is in line with the mandate of the ministry to ensure full diversification and full industrialisation of the economy”.
She disclosed that lack of after-sales back-up was one of the reasons some government agencies are not buying vehicles produced in the domestic auto industry despite the Executive Order 5 mandating them to give preference to automobiles produced in the country.
A cross section of participants at the NADDC-auto industry stakeholders forum on Wednesday November 22, 2023, in Lagos
In apparent response to sustained complaints by automakers in Nigeria of lack of patronage of their products by MDGs, the minister said the Federal Government would patronise only locally produced vehicles with strong after-sale service.
Key participants at the stakeholders’ forum included members of the Nigerian Automotive Manufacturers Association (NAMA) led by the new Chairman, Bawo Omagbitse, who is also the General Manager, Planning and Strategy, PAN Nigeria, Kaduna; and Ogoegbunam Chukwura of the National Action Committee on African Continental Free Trade Area (AfCFTA).
From KPMG, the firm that collaborated with the NADDC in drafting the 2023 NAIDP, came Tobi David with a presentation on the document, as well as various investors and company executives in the industry.
Following the minister’s remarks, as well as presentations by the AfCFTA; KPMG and NAMA, the participants brainstormed on the 2023 NAIDP content and on the imperative of ensuring that the document successfully undergoes the (legal) process of becoming law.
In his remarks, the Director General NADDC described the NAIDP as a critical pillar of the government’s effort to transform the automotive sector and position it as a key driver of economic growth and job creation.
He stated, “The plan is designed to address the key challenges facing the sector such as low production level, insufficient local content and limited access to financing.”
The DG further remarked, “I want the Nigerian Automotive Manufacturing Association (NAMA) to self-regulate. We can agree on quality and what should make an assembly plant, among other thing.”
Osanipin maintained that the NAIDP 2023 is a comprehensive and ambitious plan that seeks to align local policies with AfCFTA in such a manner that would allow the industry to compete favourably on the continental and eventually global level.
He said the policy would ensure sustainability and environmental responsibility as it offers incentives in the area of CNG-powered and electric vehicles.
The Director General also urged all local automakers to come together to build a formidable industry, disclosing that some companies hitherto sitting on the fence had expressed interest in joining NAMA.
One the high-points of the stakeholders’ meeting was the insight into the provisions of the NAIDP by the Advisory Manager at KPMG, Tobi David, who highlighted the various components of the 2023 NAIDP.
The former Director, Policy and Planning Department of the NADDC Luqman Mamudu, focused on the challenges of implementing the policy and the way forward.
In addition to ensuring that the policy is passed and signed into law, Omagbitse in his presentation, recommended a number of steps towards the implementation of the provisions in order to assure investors of the policy’s irreversibility while creating a clement atmosphere for local production.
The recommendations included limiting market participation to brands that produce locally or support them with incentives (subject to WTO regulations); limiting the number of models each participant can produce and allowing longer production runs; and that NADDC reviews and approves all agreements between OEMs and their partners in Nigeria, among others
He reiterated the eagerness of NAMA to work closely with NADDC and other relevant authorities for proper implementation of the auto policy, hinting that NAMA would develop an internal guidance system to ensure that members operate in accordance with the rules and regulations provided in the NAIDP document.
With the Chairman were other NAMA board members, including Frank Nneji of Transit Support Services (TSS’); Benneth Ejindu of ANAMMCO; and Remi Olaofe.
On behalf of the stakeholders, the NAMA Chairman commended NADDC for convening the forum.
The meeting recommended the setting up of an implementation committee for the NAIDP, project management office and a two-yearly review of the progress being made.
The forum was organised by the NADDC to address the challenges and harness the prospects for effective implementation of the 2023 auto policy.
Also present at the meeting were representatives of the Motorcycle Manufacturers Association of Nigeria (MOMAN).
Robert Ugbaja, who is the Chairman of Boulos Enterprises as well as the Chairman of the Auto Group of the Manufacturers Association of Nigeria {MANA}, was also present.
Other participants included the Managing Director of ANAMMCO, Maduabuchukwu Okeke; Uchenna Nwobu who represented Innoson Vehicle Manufacturing Company Ltd, Nnewi; the MD of Lanre Shittu Motors, Taiwo Shittu; his counterpart from Nord Motors, Oluwatobi Joshua Ajayi; General Manager, Stallion NMM, Amit Sharma; MD of Globe Motors, Victor Oguamalam; Marketing Manager, Toyota Nigeria, Bayo Olawoyin.
Others are Takashi Nakajima, MD, and Remi Adams, Sales and Marketing Manager, both of Honda Automobile Western Africa Ltd (HAWA), Ota; Karima Okunola, General Manager Marketing, Mikano Motors; Shola Afolayan of Coscharis Ford; Sudeep Mittal of Kewalram Nigeria Ltd; Sanjay Rupani of Jet Motors; Deputy VP, Kia Motors Nigeria, Olu Tikolo; as well as Managing Director of OMAA Motors, Chinedu Oguegbu.
With the NADDC DG at the forum were the Director, Research, Design and Development, Dr. Fidelis Achiv; Director, Policy, Planning and Statistics, Sani Musa; Deputy Director, Information and Pub;ic Relations Unit, Mrs. Felicia Oyebolu; and Assistant Director, Public Relations, Ike Okoha.
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