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Nigeria unveils an automotive industry development plan to become a manufacturing powerhouse.

Nigeria’s Ministry of Industry, Trade, and Investment has announced a major initiative to position the country as a leading vehicle manufacturer. The Nigeria Automotive Industry Development Plan (NAIDP), launched by Minister Doris Uzoka-Anite, aims to achieve full-scale domestic vehicle production within a decade.

“Nigeria possesses the necessary resources for indigenous vehicle manufacturing,” Minister Uzoka-Anite emphasized. “We have the raw materials, a skilled workforce, and a substantial domestic market. The NAIDP provides a clear roadmap to capitalise on these advantages.”

The plan outlines a strategic framework to foster domestic vehicle production across various segments, including motorcycles, tricycles, passenger cars, and heavy-duty trucks. A key objective is to make car ownership more accessible to Nigerian citizens by reducing vehicle acquisition costs.

The NAIDP is backed by a robust implementation committee comprising representatives from relevant ministries (Finance, Transport, and Environment) and key industry stakeholders like the Nigeria Customs Service, the Manufacturers Association of Nigeria, and the Standards Organisation of Nigeria.

This initiative comes in the wake of recent challenges faced by Nigeria’s vehicle assembly industry. Rising production costs and weakened demand have impacted the sector, with capacity utilisation dropping and workforce reductions reported.

The government acknowledges the need to address past shortcomings. The NAIDP aims to rectify the limitations of the 2014 Automotive Policy by promoting local content development and establishing a financing scheme to facilitate vehicle purchases by Nigerians.

Previously, the influx of used car imports posed a significant threat to domestic vehicle assembly efforts. The NAIDP seeks to create a more sustainable and competitive environment for local manufacturers.

With less than 10% of vehicles used in Nigeria being domestically produced, the NAIDP represents a significant step towards establishing a robust domestic automotive industry. The plan’s success hinges on effective implementation, collaboration between the public and private sectors, and addressing past obstacles that hindered previous initiatives.

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