Key highlights
- 2023-2033 automotive development plans, will enable Nigeria to migrate seamlessly from combustible engines into electric solar-powered engines.
- An improvement on the 2013 automotive industry development plan.
- It will strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders.
The Nigerian Government has announced the approval of the Nigeria investment policy (NInP), and the adoption of a new National Automotive Industry Development Plan (NADIP) from 2023 to 2033.
The Nigeria Investment Policy Plan would be the first-ever approved by the FG.
This was disclosed in a statement by the Trade Minister, Otunba Adeniyi Adebayo on Thursday.
Investment Policies
The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, the national investment policy and the automotive industry development plan were given the necessary approval at the Federal Executive Council.
He revealed that stakeholders in Nigeria’s manufacturing space lobbied for an investment policy, which would give confidence to investors in the country, adding:
- “What has been operational over the years is just investment-related regulations of Ministries, Departments and Agencies (MDAs) acting as a guide.
- “This harmonised policy will develop rapidly through industrialisation, and then snowball into a sustainable investment climate to attract the kind of investment we desire.
- “The primary focus of the investment policy is on investment promotion, facilitation and sustainable development and it would promote responsible investor conduct for sustainable development.
- “By influencing investor behaviour in compliance with globally acceptable standards relating to the environment, human rights, health, labour, safety, corporate social responsibility (CSR) and anti-corruption.”
2023-2033 Automotive Development Plan
The Minister added that the 2023-2033 automotive development plan, will enable Nigeria to migrate seamlessly from combustible engines into electric solar-powered engines.
- “This is an improvement on the 2013 automotive industry development plan, which was in place before.”
- “The National Automotive Design and Development Council (NADDC) developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry.
- “The new NAIDP will strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders”
The Minister stated further that the NAIDP was aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40 per cent of local content, citing that it will also help attain 30 percent locally produced Electric Vehicles, generate 1 million jobs, enforce patronage of locally produced vehicles by government and companies working on government contracts.
Adebayo also noted that Nigeria will soon start running a National Trade Policy that will guide trade in Nigeria from 2023-2027, as he urged that FG is reviewing the old Trade Policy to boost Nigeria’s trade within the World Trade Organisation and increase Nigeria’s revenue generation potential.
Backstory
Recall that Nairametrics reported last month that The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, stated 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.
Increased employment in the automotive value chain
Adebayo says 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.’’