Abuja, Nigeria – November 20, 2024 – The Federal Government has reiterated its commitment to repositioning the Nigerian automobile sector, with a call for radical approaches to drive industry transformation. This was emphasized by the Minister of State for Industry, Trade, and Investment, Senator John Owan Enoh, during a briefing with the Director General of the Nigeria Automobile Development and Design Council (NADDC) in Abuja.
Senator Enoh highlighted the urgent need to address issues related to spare parts and maintenance to stimulate demand for locally made automobiles. “To stimulate demand for locally made automobiles, issues of spare parts and maintenance must be tackled head-on,” he stated. “I urge local manufacturers to establish more maintenance workshops and spare part factories to meet demand. An increase in locally made vehicles without corresponding maintenance and spare part workshops jeopardizes the sector.”
The Minister assured that he would engage stakeholders on this matter, which he classified as one of urgent national importance.
The Director General of NADDC, Joseph Osanipin, called for relevant legislation to enhance government involvement in the sector. “I advocate for incentives for automobile manufacturing companies to enable them to meet their production needs,” he said.
He also highlighted the challenge posed by the importation of used vehicles, which hampers the growth of the local automobile sector, and called for urgent attention to this trend.
Osanipin further suggested the establishment of a mortgage system in the automobile sector, in line with global best practices, to enhance citizens’ welfare. “The mortgage system will no doubt help enhance citizens’ welfare,” he noted. He also urged the government to showcase locally made vehicles through adequate patronage.
He mentioned that a review and subsequent amendments of the Automobile Act are already underway, with documents currently before the Attorney General and Minister of Justice of the Federation. He requested the Minister’s support to expedite this review to reposition the sector.
During the presentation, directors in the Ministry unanimously agreed that stimulating demand for locally made automobiles would have a multiplier effect on the sector, particularly the petrochemical sub-sector.
Signed
Dr. Adebayo Thomas,
Director of Press and Public Relations, FMITI.
