The National Economic Council has backed the move by the National Automotive Design and Development Council, to begin mass production of Electric Vehicles and Compressed Natural Gas-powered vehicles in the country.
Addressing the inaugural NEC meeting presided over by the Vice President, Kashim Shettima, on Thursday in Abuja, the NADDC Director-General, Jelani Aliyu, said the effort would cushion the effect of fuel subsidy removal in the country.
According to the DG, modalities are already in place, especially with the commencement of electric vehicle assembly in the country, the News Agency of Nigeria reported.
The Governor of Abia State, Alex Otti, who briefed the media after the meeting, said the Council made other recommendations “aimed at establishing a highly effective ecosystem for the exponential development of Electric Vehicle and Compressed Natural Gas Vehicles” in Nigeria, and policy to fast track the development of electric vehicles in Nigeria.
According to the Governor, the Council called for necessary funding and support to the Nigeria Automotive Design and Development Council.
He said, “For the development of the Ultimate Nigerian Vehicle, the Pride of the Nation, one in tune with the culture, terrain and economic structure of Nigeria, perfect balance of affordability, practicality and advanced features.”
He noted that the legislative support for the automotive industry would help to provide dedicated funding for the Vehicle Finance Scheme with special emphasis on EV and CNG vehicles, to enable the affordable nationwide purchase of locally produced vehicles by Nigerians, thereby boosting production and further growth of the sector.
He said the Council targets creating one million jobs in the automotive sector and attaining 40% local content production through strategic funding and affordable infrastructure at dedicated industrial parks and clusters.
He said that the development of the automotive industry would enable the attainment of 30% local production as Electric Vehicles and enforcement of stricter Vehicle Emission Regulations to achieve environmental targets in line with the 2015 Paris Accord (on the mitigation of greenhouse gases) and the nation’s commitment to net zero by 2060 as pronounced at the 2021 COP26 in Glasgow.
He stated further, “Nigeria presents an unparalleled destination for strong automotive companies, it gives them an opportunity to be part of an exciting journey in the provision of relevant advanced and value-added transportation solutions for the upliftment of the lives of millions of people.
“Over $1bn/N500bn has been invested into Nigeria by credible local and international investors in setting up automotive production and assembly plants in the country. The facilities are located in the states of Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna, and Kano.
“Top investors are Innoson Motor Manufacturing, Dangote-Sino Trucks, Dangote-Peugeot, Mikano-Geely/Changan, PAN, Stallion/Hyundai, Honda, Elizade/Toyota, Coscharis/Ford, Iron Products, Kojo Motors/Omaa, Jet Systems Motors.
“Combined installed capacity of 400,000 units per annum has been achieved.”
He stated that vehicles assembled or produced in Nigeria include Sedans, SUVs, Pickups, Buses, Trucks, Military/Security, Ambulances/Special purposes as well as electric-powered, petrol-powered, diesel-powered, and CNG-powered vehicles.
Otti affirmed that over 50 thousand direct and indirect jobs have been created in the industry.
