Key highlights
- The newly reviewed auto policy which will soon be submitted to FEC is part of the Federal Government’s effort aimed at increasing the local production of vehicles.
- The new auto policy will also help increase employment in the automotive value chain.
- The minister said that the Federal Government has demonstrated determination to turn around the fortunes of the country from dependence on oil to diversification of the economy.
The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, says that the ministry will soon submit a new auto policy for approval by the Federal Executive Council (FEC).
The newly reviewed auto policy is part of the Federal Government’s effort aimed at increasing the local production of vehicles.
This was made known by the minister when the Senior Executive Course 45 participants of the National Institute of Policy and Strategic Studies (NIPSS) visited him on Monday in Abuja, according to a statement issued by his Special Adviser on Media, Ifedayo Sayo.
In a statement issued by his Special Adviser on Media, Mr. Ifedayo Sayo, the minister said that the auto policy was reviewed with the aim to increase local production of vehicles.
Increased employment in automotive value chain
Adebayo said the new policy will help increase employment in the automotive value chain among other benefits.
- The minister said, “Besides, the new policy will help the country to transit from semi-knock down to completely knock down/completely built up manufacturing.
- “The new policy also has as one of its objectives a plan to increase employment in the automotive value chain.’’
According to him, apart from the auto policy, the ministry is also working on a new investment policy and a review of the current trade policy which it intends to conclude before May 29.
FG to fast-track industrialization of Nigeria
Adebayo said that the Federal Government has demonstrated determination to turn around the fortunes of the country from dependence on oil to diversification of the economy.
According to him, this is evident through the adoption and implementation of robust policies such as the Economic Recovery and Growth Plan (ERGP) and the Nigeria Industrial Revolution Plan (NIRP).
- He said, “As part of the process of enhancing and fast-tracking our mandate toward industrialisation in this country, the ministry came up with the Nigeria Industrial Revolution Plan (NIRP), a 10-year plan to be reviewed after five years.
- “The NIRP was approved in 2014 but its implementation started in 2015. The Plan which is now under review is designed to accelerate the build-up of industrial capacity in Nigeria.
- “Its aim is to significantly raise manufacturing contribution to Gross Domestic Product (GDP) which is based on priority sectors, where Nigeria has a competitive and comparative advantage.
- “These are agriculture and agro-allied industries, metals and solid minerals industries, oil and gas related industries, construction, light manufacturing and services.’’
He said that the ministry under him has recorded appreciable achievements in the implementation of the NIRP.
- The minister said, “Especially in the development and implementation of some sectoral policies such as Backward Integration Programme (BIP) in the Cement industry.
- “Others are the Nigeria Sugar Master Plan (NSMP), the Nigeria Automotive Industry Development Plan (NAIDP), the Cotton, Textile and Garment (CTG) policy, Leather and Leather products policy as well as the Tomato Industry policy.’’
What you should know
- Recall that in October 2021, the Federal Government announced that it was reviewing its National Automotive Industry Development plan in a bid to boost Nigeria’s rubber industry and diversify the economy.
- The review was being done by the Federal Ministry of Industry, Trade and Investment in collaboration with the National Automotive Design and Development Council.
Manufacture cars at what cost? How many Nigerians can afford to buy a car at N5million. Don’t preach credit system because that is a failed system. It suffered still birth. The bank or creditor has all sorts of inbuilt costs to frustrate the debtor. It is difficult for start ups to access funds. Even existing businesses are dying. CBN interventions are only for the social media. It should be easy for genuine businesses to access at least N100million with relative ease with the development banks guiding them . I know of a business promoter who has been going about with his proposal in the last 5 years looking for funding of N200milliom. How did we get here