•As NADDC DG ends tour
By Moses Akaigwe
•L-R: Dave Coffey, CEO, AAAM; Sani Musa, Director of Policy, Planning & Statistics, NADCC; Ulrich Schwabe, Director: Production, Volkswagen Group South Africa; Joseph Osanipin, DG/CEO, NADCC; Ms Martina Biene, Chairperson/MD, VW Group S/Africa & President, AAAM; and Fidelis Achiv, Director: Research, Design and Development, NADCC, during the visit of the NADDC team, to Volkswagen plant in Kariega, S/Africa
The Nigerian Automotive Industry Development Plan (NAIDP) 2023-2033 approved by the Federal Government a few months ago to drive the recovery of the country’s automotive industry, is an initiative that will help the sector thrive.
But, that is if the development plan is given legal support and vigorously implemented to attract serious investments.
This was the optimistic view expressed by automakers in South Africa under the aegis of African Association of Automotive Manufacturers (AAAM), during last week’s visit by the Director General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin, to that country.
Osanipin led an NADDC delegation on a tour of South Africa’s auto industry with the objective of visiting the original equipment manufacturers {OEMs} and other stakeholders’ facilities with a view to fostering a collaboration that would benefit Nigeria’s auto industry.
This, it was learnt, was in line with the efforts being made to re-energise the automotive industry in Nigeria.
One of the high points of the tour was a visit to the Volkswagen plant in Kariega.
NAIDP 2023
Commenting on the NAIDP also called the auto policy, the President of AAAM, Ms Martina Biene, said the document is a comprehensive policy, expressing the hope that the National Assembly in Nigeria would ratify it for assent.
Biene, who is also the Chairperson and Managing Director, Volkswagen Group South Africa (VWSA), and spoke virtually from South Africa with motoring journalists in Lagos, remarked:
“We have seen the ideals of the policy. And not only the ideals, but the crafting of the policy in Nigeria,which is pretty much a very comprehensive policy whose implementation will help the automotive industry to thrive in Nigeria. That was really good. The next step is ratification in the National Assembly in Nigeria, and Implementation.”
An auto policy in Nigeria with legal support, according to the AAAM President, will boost the country’s new vehicles market and return it to vibrancy.
•NADDC DG, Joseph Osanipin {middle} during a tour of Volkswagen plant in Kariega, South Africa
Return of VW to Nigeria
Ms Biene pledged Volkswagen’s commitment to, and interest, in the Nigerian market, saying, “We also want to be part of the prosperity in the Nigerian market and we have seen a very good approach in terms of policy.”
She asserted that Volkswagen has a remarkable history in the Nigerian market., recalling, “We also wish to re-emphasize that VW signed an MoU in 2018 with the government to establish a partnership. That is also what we want. What is needed is new car market in Nigeria. New car market is going to happen with the implementation of the policy.”
•Osanipin {left side of car} , Biene {right} and others,during the NADDC DG’s tour of Volkswagen plant in Kariega, South Africa
On the local auto firm to partner with Volkswagen when it returns to Nigeria, the Chairperson said, “Once we establish a proper new car market, I am pretty sure that we all want business. We are eager to start the business. We are not committing to any partners, but I am just saying we want to come back.”
AAAM pledges support
Also commenting on the NAIDP 2023, the Chief Executive Officer (CEO), AAAM, Dave Coffey, said the continental association was delighted to receive the NADDC team, which according to him, had shown keen interest in South Africa’s auto industry.
“At AAAM, we believe that Nigeria’s NAIDP needs to be implemented. It needs to be approved and we will assist you in doing whatever we can and support you. We believe this is a great opportunity and the time is ripe,” Coffey stated
Why NADDC visited SA
Earlier while commenting on the mission to South Africa, the NAADC DG,Joseph Osanipin, had explained that the council embarked on the tour to see what could be taken home that would be useful in the quest to enhance the revitalisation of the local industry.
“We came to see how we can take what is good in all these areas and replicate the same in Nigeria. That was the main reason we came here and we have to meet the AAAM. Fortunately, Martina Biene has to wear two caps here as the President of AAAM (and Chairperson of Volkswagen) that hosted us since Monday that we have been here. They made it easier for us to meet the stakeholders in the industry,” Osanipin said.
The DG was accompanied on the trip by the NADDC’s Director, Research, Design Development, Fidelis Achiv; and the Director of Policy, Planning and Statistics, Sani Musa.
Observations
Osanipin also spoke on the specific observations to be taken home: “The lessons that we have learnt here are firstly, we need to put policy and process in place. That is what can drive investments. Two, is that auto (production) is about volume. We have seen that when Volkswagen was doing 11 products, they couldn’t meet the numbers they were doing. But
now, they have only two models and they are doing far better in terms of the number they are doing. It is all about volume.
“Today, we have different kinds of models in Nigeria. In SA, we have only seven manufacturers with 40 models. With this, it has enabled them to put up huge volumes. So compare that one with what we are doing in Nigeria today, where we have over 35 assemblers and we are still getting more.
“So, this is what we have to take a critical look at; that is, the component parts. If we have all these (models) everywhere, how are we going to get the component parts that will come with that volume. It is a lesson that we have learnt and some other things we need to do differently, like bringing back VW or any other OEM that will produce new vehicles, then we need to look at the quality of our fuel.”
The NADDC DG also responded to a question on how optimistic he was that the government of President Bola Tinubu would give the NAIDP 2023 a legal support when the previous administrations, including that of Muhammadu Buhari that spent eight years in the saddle, did not assent to the previous bill passed by the National Assembly.
He said: “I will not be categorical to say that this government will or will not sign into law a bill on the new NAIDP 2023. However, it is said that you know what the day will look like from the morning. If the body language of the administration and its Renewed Hope Agenda are anything to go by, then we are optimistic about the policy becoming law.”
According to Osanipin, the government had mandated the Industry, Trade and Investment Minister, Dr. Doris Uzoka-Anite, to work towards a successful passage, assenting to, and implementation of, the policy.
He assured that the NADDC and the industry stakeholders are collaborating with the Minister to hit the goal.
Quality of fuel in Nigeria
Volkswagen quit Nigeria a few years ago, citing, among others, lack of an automotive policy with legal framework that was effectively implemented, as well as the poor quality of fuel available in the country (which impaired the performance of its vehicles’ engines), as reasons for its action.
Commenting on the issue during the virtual interaction on Wednesday, Biene said she understood that efforts were being made to move Nigeria to Euro 4 emission standard, and also for the country to measure up to the emission standard that is required.
She, however, pointed out that there was need to address the issue more diligently, “because it is not all about being able to measure Euro 4, but it is also about having the fuel Euro 4 emission level in the country. I think it is well understood. I am very positive on the drive that the topic is getting and has got already.”
Hosted and guided by the AAAM led by Dave Coffey, the NADDC DG had kicked off the tour on Monday, January 22, with a visit to component manufacturers, and Automotive Industry Transformation Fund (AITF) in Johannesburg, in addition to having extensive deliberations with the Automotive Incubation Development Centre (AIDC) in Pretoria.
The tour continued on Tuesday and Wednesday with the visitors interacting with esteemed companies and individuals: including BOSCH and ADIENT.
Notable figures in attendance were Mr. Alex Erwin, former Minister of Trade and Investment in South Africa; Mr. Justin Payne, one of the pioneers of EVs in that country who provided insights on the Adoption of Electric Vehicles; and Victoria Backhaus-Jerking, Head of Project Office South Africa VDA-AAAM.
The agenda covered a spectrum of industry facets, with one meeting featuring Credit Scheme Expert, Mr. Jim Dando, who shared expertise on strategies to attract and stimulate auto credit schemes within Nigeria.
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