The Federal Government has been urged to adopt a long-term and consistent automotive industry policy that prioritises local value creation and domestic manufacturing, rather than focusing mainly on revenue generation through vehicle import duties.
This came as the Federal Government disclosed that it is reviewing the national automotive policy to accommodate emerging technologies such as electric vehicles (EVs), Compressed Natural Gas (CNG)-powered vehicles and other alternative energy solutions.
Former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr Boboye Oyeyemi, gave the advice yesterday during the 30th anniversary celebration of Motoring World, themed: “Celebrating Three Decades of Excellence in Automotive Journalism”, held in Lagos.
Oyeyemi, who chaired the occasion, said Nigeria possesses one of the largest automotive markets in Africa but has failed to fully harness its enormous potential due to policy inconsistencies and weak support for local manufacturing.
According to him, the country’s population of over 240 million people, an estimated vehicle fleet of 21 million, a road network spanning more than 204,000 kilometres, and a growing urban population present significant opportunities for vehicle assembly, component manufacturing, automotive financing, electric vehicle infrastructure and related services.
Oyeyemi, who is also the Chairman of the Chartered Institute of Logistics and Transport (CILT), noted that despite these advantages, the country’s automotive manufacturing sector remains underdeveloped and heavily dependent on imported used vehicles.
He lamented that the National Automotive Industry Development Plan (NAIDP) and other regulatory frameworks had been repeatedly reviewed and restructured without delivering the sustained industrial growth expected from a country of Nigeria’s size and market potential.
According to him, investors had entered and exited the sector, while several assembly plants struggled to remain operational due to policy uncertainty.
Also speaking, the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, said the Federal Government was reviewing the automotive policy to accommodate emerging technologies in the sector.
Oduwole, who was represented by Samuel Adetoro, Desk Officer for the Auto Industry at the ministry, said the ongoing review was aimed at aligning the country’s automotive ecosystem with global trends in sustainable mobility and industrial development.
She noted that while the existing automotive policy provided a framework for the growth of vehicle assembly operations in the country, changing global realities and technological advancements had made it necessary to update the policy to reflect current and future transportation needs.
In his keynote address, the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, represented by Susan Taiwo, called for stronger collaboration among government, industry stakeholders and the media to accelerate the country’s automotive industrialisation and position Nigeria as a leading automotive manufacturing hub in Africa.