The Director General, National Automotive Design and Development Council, NADDC, Jelani Aliyu, has disclosed that his Agency is poised towards meeting President Muhammadu Buhari’s target of lifting 100 million Nigerians out of poverty in 10 years.
A statement signed on Tuesday by the agency’s Deputy Director of Press, Ahmed Danbazau, said Mr Aliyu made the declaration while addressing journalists in Abuja recently.
According to him, no other sector can play important role as an automotive industry, stressing that the agency had begun 10 projects in several states in order to meet the target.
He said: “We have ten important projects that are contributing towards fulfilling President Muhammadu Buhari’s promise to lift 100 million Nigerians out of poverty in the next ten years.
“We are proud to be one of the 17 parastatals under the Federal Ministry of Industry, Trade and investment, saddled with responsibility of developing local automotive sector by implementing National Automotive Industrial Development Plan, NAIDP, which has 5 key elements.”
Mr Aliyu noted that the five key components include: Investment Promotion, Infrastructural Development, Improvement of Standard, Skills Development as well as Market Development.
According to him, these key areas are focused on reviving, developing and sustaining the local automotive industry in terms of production of vehicles and its components in the country.
Skills Development
“When we talk about NAIDP, the important pillar is skills development. As you are aware, the present administration is committed to lift 100 million people out of poverty in the next ten years.
“We can achieve that by creating jobs, building more Industries and getting people engaged in more productive lives, hence the building of Seven Training Centres in each geo- political zone of the country, so as to empower youth across the country.
“We are far in that project and some of these Automotive Training Centres are already completed and in the process of getting all the necessary equipment in place. Those that haven’t been completed will be completed soon,” Mr Aliyu stated.
According to the DG, the agency is constructing 3 Automotive Hubs in Sokoto, Ondo and Owerri, disclosing that the centres would be equipped with all the necessary equipment and highly professional staff who would diagnose, repair and maintain any vehicle there.
Investment Promotion
In the area of investment promotion, the director-general said the agency was working with both local and international companies and other entities to set up assembly and production plants in Nigeria.
This initiative, he said, had injected billions of US dollars into the country.
“A number of automotive plants that assemble vehicles in the country have been set up by Automotive Companies such as Honda, PAN Peugeot, INNOSON, Nissan, ANAMCO, and Dangote Trucks.
“We will continue to promote that investment. We have also signed a Memorandum of Understanding, MoU, with the Volkswagen Company. We are also discussing with other big international players to come into the country and produce vehicles locally” Mr Aliyu added.
Infrastructural Development
He further disclosed that infrastructure development another key component of NAIDP, NADDC is working towards constructions of 3 Automotive Industrial Parks in Kaduna, Ode- Omu and Nnewi.
These, he said, would be at centralised locations with all the necessary infrastructure such as electricity, water connectivity and other resources to make it easier for companies to set up industrial facilities.
He explained that the initiative would be a Public-Private-Partnership project, working closely with relevant stakeholders to enhance and actualize local content development target as well as develop more components locally.
Improvement of Standard
Another pillar of NAIDP is the homologation of the improvement of standard.
He said: “As you are aware the Automobile is a very complex machine with many different components that all come together to create a machine and it is imperative that Nigerians are protected.
“That any spare parts they use must meet minimum global standard, which unfortunately isn’t the case.
“As I speak, in our efforts to protect Nigerian public, we have almost completed the construction of 3 Automotive Testing Centres in Zaria, Lagos and Enugu.
“These projects would be completed before the end of this year. Any spare parts that has not been tested by any one of the centers, will be deemed sub- standard or illegal.
“All these are our efforts to make sure that the vehicles and the components are available in Nigeria and are safe and efficient”.
Market Development
Mr Aliyu also mentioned market development as another component of the NAIDP, saying: “One thing is to build a vehicle, and another thing for people to buy these vehicles.
“In order to achieve this, we have set aside billions of naira and we are working with WEMA, ZENITH and JAIZ Banks to provide an Automotive financing for made in Nigeria vehicles at a single digit interest rate between 6 and 8 percent.”
This, he said, would help Nigerians put down 10 percent and drive off for brand new made in Nigeria vehicle and pay over a period of 5years.
He noted that this would help the automotive industry produce more, as they have ready buyers.
In addition to the five key areas of NAIDP, Mr Aliyu said the NADDC is also working with the Federal Ministry of Petroleum Resources on a programme of converting diesel vehicles to gas.
“As you are aware, Nigeria has huge reserve of gas which most time being paid for to be flared.
“We are also working with the relevant stakeholders to launch what we call ‘the NADDC Mechanics finding App’, so we can differentiate between Professional Mechanic and those you may say a sub-standard workshops”.
“In a nutshell what NADDC does when you look at NAIDP, we are creating and developing a comprehensive eco- system that will support the development of sustainability of manufacturing within Nigeria”, the DG explained.
He also disclosed that the agency was working with the National Assembly, parent Ministry and Presidency, to further review the Automotive Policy by setting up some Fiscal incentives that would promote local production and discourage importation of used vehicles.
“We believe Nigerians deserve vehicles that are new, modern, safe and efficient and the only way to do that is by promoting local Manufacturers and discouraging importation of what could be dangerous to the Nigerian Public.
“The Automotive Policy will provide 10 year tax holiday to any new Company that will produce vehicles in Nigeria, as this will encourage local production and discourage importation of vehicles as envisaged in Executive Order 03 and 05 signed by President Muhammadu Buhari among others,” he stated.
