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Indigenous automobile manufacturer, Innoson Vehicle Manufacturing Company Limited, has called on the Federal Government to review import duties on electric vehicle (EV) components, warning that the current tariff structure could put locally made EVs at a disadvantage.
The company made the appeal when a delegation of the Manufacturers Association of Nigeria (MAN), Anambra, Enugu and Ebonyi Branch, led by its Chairman, Lady Adaora Chukwudozie, visited its manufacturing plant as part of engagements under the MAN Industrial Energy Adoption Programme.
The delegation included the Managing Director of MAN Power Development Company Limited (MPDCL), Oweh Mba-Sam, representatives of Empower New Energy of Norway and Paras Energy & Natural Resources Development Limited.
During the visit, the team inspected Innoson’s electric vehicle production facility and some of the EVs manufactured by the company.
Innoson management said a major policy imbalance was affecting the competitiveness of locally produced electric vehicles.
According to the company, while the government has introduced duty concessions for imported finished electric vehicles, components needed to manufacture EVs locally still attract import duties.
It said the situation makes locally manufactured EVs more expensive and could discourage further investment in domestic production.
Chukwudozie called for a review of the tariff structure, saying Nigeria’s shift towards electric mobility should support local manufacturing instead of increasing dependence on imported vehicles.
“Our transition to cleaner energy must also become an industrialisation opportunity for Nigeria. We should encourage companies that have invested in local production, technology, employment and capacity development,” she said.
She urged the Federal Government and relevant fiscal authorities to engage local EV manufacturers and MAN to review the tariff regime and create a more competitive environment for domestic production.
The visit was also part of efforts to support Innoson’s interest in the MAN Industrial Energy Adoption Programme, through which manufacturers are being assisted to explore cheaper, more reliable and cleaner energy sources.
Innoson is considering solar power as part of its efforts to reduce energy costs and improve its environmental, social and governance (ESG) compliance.
The MAN delegation also visited Juddy-Bolema Industries Limited, Cutix Plc and other manufacturers interested in the programme.
At Juddy-Bolema, the team held a community stakeholders’ engagement as the company advances plans for a solar energy project.
The project is expected to help reduce energy costs, improve power reliability and support the company’s carbon-reduction efforts. It could also create opportunities for participation in carbon-credit schemes, subject to meeting relevant environmental and verification requirements.
At Cutix, discussions focused on the company’s energy needs and the development of a suitable renewable-energy solution as MAN moves participating manufacturers from expressions of interest to project assessment and implementation.
The growing interest in the programme follows the MAN South-East Industrial Energy Solutions & Investment Symposium, which brought together government agencies, regulators, manufacturers, financiers, technology providers and project partners to discuss solutions to high energy costs facing industries.
The Industrial Energy Adoption Programme, coordinated by MPDCL, is designed to connect manufacturers with financing, technology and project implementation partners to help them adopt suitable energy solutions.
Chukwudozie said the response from manufacturers had been encouraging, adding that attention must now shift from discussions about Nigeria’s energy challenges to actual projects that can lower production costs and improve competitiveness.
She said successful implementation of the Juddy-Bolema project and other planned projects would boost manufacturers’ confidence in renewable energy and encourage wider adoption across the South-East and other parts of the country.
However, she stressed that investment in cleaner energy must be matched by government policies that protect and strengthen local industrial capacity.
“We want to see our manufacturers reduce their energy costs, become more sustainable and compete globally. But sustainability and industrialisation must move together,” Chukwudozie said.
She added that Nigeria’s green transition should go beyond increasing the use of electric vehicles and renewable energy to expanding local production, strengthening domestic supply chains, creating jobs and building technological capacity.
For Innoson, the key message is that government incentives for electric mobility should also make it commercially attractive for companies to manufacture electric vehicles and their components in Nigeria.
