A new development plan has been approved!

The Federal Government has announced that a new automotive development plan has been approved by the Federal Executive Council.

Immediately after that, it was reported by the Federal Government that a new tariff on the imported cars would be announced soon.

According to Nigeriatradehub, this new tariff will make imported cars more expensive thereby, promoting the purchase of locally manufactured vehicles.

Mr. Olusegun Aganga, the Minister of Industry, Trade and Investment, confirmed this, adding that this help develop the Nigerian automotive industry.

“The importation of Tokunbo vehicles will not be a major threat to the automotive development plan. The tariff for the importation of cars has been reviewed upward and will be announced soon.”

On the new automotive development plan, he said it is to make Nigeria one of the auto-producing countries.

“In many countries around the world, the automotive industry plays both strategic and catalytic roles in economic development, particularly in employment creation and wealth generation. With our current population and economy, our potential vehicle market is about one million vehicles a year. This is more than sufficient to support an automotive industry.”

“Recognising the strategic effects of the automotive industry in industrialisation, emerging economies like Brazil, China, Malaysia, India, Iran, Indonesia, Thailand and South Africa took deliberate steps to develop their automotive industry between the 1960s and 1980s. Nigeria started about the same time in the 1970s. These countries have, however, developed well advanced automotive industries now in contrast to Nigeria. The Nigerian auto development plan will promote investments in the assembly of inexpensive cars in the country at prices, which Nigerians can afford, and will gradually substitute the large and growing car imports coming into the country.”

Speaking on the new automotive development plan, the Director-General, National Automotive Council, Mr. Aminu Jalal, said it is already beneficial as many international automotive manufacturers have indicated interest to invest in Nigeria.

“Nissan, Toyota and others are now conducting a feasibility study on vehicle assembly in Nigeria. At full capacity, the Nigerian automotive industry has the potential to create 70,000 skilled and semi-skilled jobs along with 210,000 indirect jobs in the Small and Medium-scale Enterprises sector that will supply the assembly plants.”

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