New government policy boosts domestic auto production

Nigeria got the National Automotive Industry Development Plan was introduced in 2013 in Nigeria in a bid to make domestic production more competitive.

Recently, a new automotive development plan was approved by the Federal Government in order to boost domestic auto production.

READ: A new development plan has been approved!

The new plan came with a new tariff that will make imported cars more expensive in order to promote the purchase of locally manufactured vehicles.

So far, this plan, BusinessDay reports, has boosted domestic auto production, resulting in a 20 percent drop in vehicles being imported into country, and 12 new approved vehicle assembly plants.

Recently, U.S. auto manufacturer Ford announced it will start assembly of Ranger pickups in Nigeria.

READ: Automaker set to build Ranger pickups in Nigeria

According to a PremiumTimes report, the companies that have applied for licenses to assemble vehicles in Nigeria include: Toyota, Honda, General Appliances West Africa, Perfection Motors Company, Richbon Nigeria; R.T. Briscoe Nigeria; Nigeria-China Manufacturing Company; Nigeria Sino Trucks; Coacharis Motors; DAG Motorcycle Industry Nigeria; Globe Motors Nigeria; Century Auto-Assembly Nigeria; and Concept Auto Centre.

In the past, Nigeria had only 15 vehicle assembly plants with three operational.

Now, Nigeria has a total of 45 plants either in the works or in production.

This new plan is already doing wonders for our automotive industry, economic growth, and making Nigeria an attractive market for automakers.