Give assent to NAIDP Bill to foster automobile growth, expert tells FG

For the umpteenth time, the Federal Government has been called upon to give assent to the amended National Automotive Industry Development Plan (NAIDP) in a bid to boost investors’ confidence in the automobile sector.

The Chief Executive Officer (CEO), Transtech Industrial Consulting, an automotive replacement parts company, Mr. Luqmam Mamudu, made the call recently at a summit organised by the Nigeria Auto Journalists Association (NAJA) in collaboration with the National Automotive Design and Development Council (NADDC).

Mamudu speaking at the summit with the theme: ‘Developing Nigeria‘s Economy through the Auto Industry,’ said that restriction on the inflow of used vehicles must be well-managed to ensure balance between industry needs and consumer preference for Nigeria to reap automotive industry benefits.

NAIDP, which was aimed at engendering rapid increase in the local production of vehicles, was first unveiled as a policy in 2010, about 14 years ago.

The system is estimated to generate at least one million jobs and enforce patronage of locally produced vehicles by government and companies working on government contracts.

In May 2023, the Federal Executive Council (FEC) of former President Muhammadu Buhari approved it after various amendments.

Mamudu, who was also a former director in NADDC, said that it was pertinent for the Federal Government through the Federal Ministry of Industry Trade and Investment to negotiate with countries or regions from which these vehicles originate.

He maintained that all imported used vehicles, including salvage must be accompanied by certificates of integrity by originating countries.

Mr. Benedeth Ejindu, Board Member, Nigeria Automobile Manufacturers Association (NAMA), also stressed the need for the NAIDP to be signed into law to reposition the automotive industry for economic growth and development.

According to Ejindu, there was also the need to develop and implement an automotive raw materials development and component manufacturing masterplan.

“There is the need to revive tyre, battery, and glass manufacturing as a precursor to revamping local manufacture of welded parts (exhaust system, seat frames), elect Parts (batteries, trafficators, wiring harness).

“Others are plastic and rubber parts such as tyres, tubes, fan blades, seat foam, oil seals, radiator, cables, filters, brake pads/linings, windscreens, side glasses, fibre-glass parts and paints,” he said.