NADDC Plan to adopts development of automotive suppliers’ parks to boost production of cars

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A10 year Automotive Programs aim to grow assembly capacity to create sufficient demand for automotive components industry is under way.

Speaking as a guest of honour at the first Kaduna Automotive Fair and Exhibitions/Stakeholders Conference organized by Routes and Roads Transport Company, Kaduna, October, 2017.

The National Automotive Design and Development Council (NADDC), Director General, Jalani Aliyu, in a paper presented at the event titled “The Nigeria Automotive Policy And Implementation: The Road So Far” said that Local Content has shown the level of significant achievement in assembly capacity, therefore, Council has increase focus on developing capacity to produce components locally, he added.

Aliyu stated that to this end the council has commenced engagement with various state governments, so far to reacquired lad space of 240 hectare in Kaduna, a 200 hectare area in Osun and another hectare in Nnewi for the development of automotive suppliers’ parks. He noted that these parks will attract local and foreign components parts manufacturers to feed, the assembly plants and the replacement market. This will guarantee high local value in vehicle produce in Nigeria, DG added.

“The Nigerian Automotive Policy was launched in 1993 and the National Automotive Council=NAC= or which is today National Automotive Design and Development Council =NADDC=was established as the institutional framework to implement the policy. The Automotive Industry in Nigeria actually had long existed before this time with the establishment of 2 car plants =VWON in Lagos and PAN in Kaduna along with other 4 commercial vehicle plants = fiat in Kano, Styre in Bauchi, Leyland in Ibadan and Mercedes Trucks in Enugu, respectively.

“The first initiative was undertaken as part of the overall economic development plans that Nigeria emerged from the civil war and adopted the import substitution strategy to grow a sustainable economy. The entire industry collapsed in the 80s when Nigeria adopted the free market model and opened up her borders. The policy launched in 1993 and re-launched in 2013/14 as National Automotive Industry Development Plan=NAIDP= was to therefore revitalize the ailing industry and to invite more FDI.

“The NAIDP is a 10 year Automotive Programs that aim to grow assembly capacity to create sufficient demand for automotive components industry.”

The DG pointed out that although the installed capacity has grown, the operating capacity has remained poor. Amongst several reasons, the continuous unrestrained import of used FBUs has remained control. The increase in installed capacity can largely be credited to No1 NAIDP pillar which is the existing fiscal regime. The regime places a tariff of 35percent plus a levy of 33 percent on fully built cars and 33percent tariff on FBU commercial vehicles.

“Others pillar of NAIDP which will take it truly sustainable are yet to be fully realized on these are: The Marketing Program- Under this program, a fund is to be established to be offered to Nigerian at low cost to finance their commercial fleets and cars. The program is being redesigned to involve more Nigeria banks. It is expected that once this is launched, more Nigerian can afford more new cars and the provision in NAIDP to restrain import of used vehicles will be applied.

“To invite more OEM investment council is supporting a bill in the National Assembly which aims to pass NAIDP into law. This will engender investors’ confidences.

“Standard: The development of automotive laboratory as provided for in plants for safety a test is now at 70 percent completion stage. There is the material test lab at zaria in Kaduna while the component test lab is at Enugu and the emission test is in Lagos.

“Human Capital Development: A significant level of achievements has also been realized in this aspect as NADDC continue to roll out programs independently and with partners including the Presidency.

Amehnews recalled the DG’s first day in the office statement which parts said “We shall empower our talented youth with the necessary professional training in contemporary automotive design and development, leveraging the most sophisticated technology, so they will innovate, design and develop automotive and transportation solutions that are in tune with our culture, climate, geography and economic structure.

Our manufacturing stakeholders must be encouraged and supported to leverage advanced technology in providing the most applicable, safest, most durable and cost-effective vehicles. The NADDC is committed to identifying progressive technical partners and investors from around the world who can work with us to develop the automotive sector potential in Nigeria.

In his words: Nigeria must not be defined by its current challenges, they are not who we are, we are bigger than them. We must be defined by our dreams and aspirations; we must be defined by what we can achieve. We must be defined by a better tomorrow, nothing is impossible, there are no impossibilities, and there is only a better Nigeria to build.”


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