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Minister of Industry, Dr. Doris Uzoka-Anite, says the automotive industry has the potential to be a cornerstone of Nigeria’s economic recovery, offering numerous benefits including job creation, technology transfer, and the development of ancillary industries.
She made this known in Lagos on Thursday, June 27, while delivering a key-note address at the Nigeria Auto Industry Summit organised by the Nigeria Auto Journalists Association(NAJA) in collaboration with National Automotive Design and Development Council(NADDC), held at Radisson Lagos.
Represented by a Deputy Director in the Ministry of Industry Development Office, Mrs. Olumuyiwa Ajayi, she said, ‘’The automotive industry is labor-intensive and has the potential to create thousands of jobs across the value chain from manufacturing and assembly to sales, maintenance, and logistics,’’ adding , ‘’by fostering a robust automotive sector, we can significantly reduce unemployment rates and provide sustainable livelihoods for our citizens.
Anite-Uzoka noted that the automotive sector is a driver of technological innovation. Through partnerships with global automotive giants and the establishment of local research and development centers, we can facilitate the transfer of cutting-edge technologies to Nigeria. This will not only enhance our manufacturing capabilities but also promote innovation in other sectors.’’
She said, ‘’The development of the automotive industry will spur the growth of other related industries such as steel, rubber, plastics, and electronics. This industrialization will diversify our economic base, reducing our dependence on oil and making our economy more resilient to global market fluctuations.
‘’I want to assure you that the government is committed to creating an enabling environment for the automotive sector to thrive. We have introduced several policies and initiatives aimed at supporting this industry, which are: the National Automotive Industry Development Plan (NAIDP): This plan provides incentives for local manufacturing, including tax breaks, import duty reductions on essential machinery, and investment-friendly regulations. It aims to attract both local and foreign investments in vehicle assembly and production.
‘’ We are investing in critical infrastructure such as roads, ports, and power supply to support the logistics and operational needs of the automotive industry. Improved infrastructure will reduce production costs and enhance the competitiveness of locally manufactured vehicles.
‘’ We are fostering collaborations between the government and private sector stakeholders to drive the development of the automotive industry. These partnerships will leverage the strengths of both sectors to achieve common goals.”
The Minister added, ‘’We acknowledge the challenges that lie ahead. Issues such as inadequate access to finance, limited local content in vehicle production, and the need for policy consistency must be addressed. The government is committed to working with industry stakeholders to overcome these challenges and create a conducive environment for growth.”
While urging all stakeholders; government agencies, private sector players, financial institutions, and development partners to join hands in this endeavor, she maintained that, ‘’the automotive sector holds the key to reviving Nigeria’s economy and positioning our nation as a hub for automotive manufacturing in Africa,” adding, ‘’With the right policies, investments, and collaborative efforts, we can transform this sector into a significant driver of economic growth and development.’’
