Chairman of House Committee on Industry, Enitan Badru, has called for innovative approaches to enhance local production and development of service centres, crucial for sustainability of the industry.
He spoke during an oversight visit by the committee to vehicle assembly plants and facilities in Lagos.
Badru, who visited Mikano International Limited, also went to CIG Motors and Dangote Sinotruck West Africa Limited.
Badru noted the potential to save foreign exchange if the local manufacturing segment of the auto industry flourishes.
“The global market thrives on imports, a trend that is costing us dearly. We must focus on developing our manufacturing to stem this,” he said.
Badru emphasised importance of affordable financing options for car buyers, citing high funding costs as a major hurdle for the sector.
He said: “Assembly plants complain of funding. The cost of funding is high and they need to survive. We advised them not to rely more on government patronage, but strive to attract ordinary Nigerians”.
Addressing the potential for legislative support, Badru hoped the committee’s role would be pivotal in facilitating public-private partnerships that encourage growth. “We will assist manufacturers with legislation that can bolster their operations and encourage further investment,” he noted.
Speaking on high funding costs, Badru advised manufacturers to explore innovative payment schemes to attract a broader consumer base. “Government patronage represents only a fraction, about 2-3 per cent, of Nigeria’s market. To thrive, manufacturers must create flexible payment options that enable Nigerians to purchase vehicles without upfront cash,” he said.
He urged stakeholders to align their goals with Nigeria’s environmental ambitions, particularly in light of the country’s commitment to net-zero emissions by 2060.
Director-General of National Automotive Design and Development Council (NADDC), Joseph Osanipin, noted importance of collaboration between government and private sector to develop automotive sector.
He noted NADDC’s role in ensuring vehicle assembly plants meet standards. “We inspect facilities, technical partners, and personnel to ensure compliance,” he said.
Osanipin said to promote growth, NADDC established policies and regulations, including Nigerian Automotive Industry Development Plan (NAIDP), to attract investments, expand customer base, and develop skills.
He stressed importance of producing high-quality, competitive vehicles. “If prices are not competitive, nobody will buy local products,” he said.
According to him, NADDC is working with stakeholders to address challenges in the industry.
He added that by partnering with the private sector and legislature, the council can create a thriving automotive industry.
Executive Director of CIG, makers of GAC Motors, Jubril Arogundade, called for policies to help local manufacturers compete in pricing.
Our advocacy is not for a ban on foreign imported cars,” he said. “Federal Government should support local manufacturers assembling with policies.”
Arogundade said CIG developed affordable financing, including a pay-in-instalments scheme, to ease cost burden on Nigerians.
He, however, noted that high interest rates have been a challenge.
©CDA News
