Revised National Automotive Industry Development Plan (NAIDP)

To achieve a globally competitive automotive ecosystem that serves the domestic and export market, delivers sustainable value for the Nigerian Economy and all stakeholders while enabling the future of mobility.

To drive the realization of the Vision for the Nigerian automotive sector, through the five key development targets identified as imperative:

1. Growth of vehicle production to 200,000 units
2. Transition from SKD to CKD/CBU mode of manufacturing
3. Increase in the local content of assembled vehicles to 40%
4. Increase in employment in the Automotive Value Chain
5. Attainment of Electric Vehicle Production of 30% of local production
6. One new bonafide manufacturer/assembler status license was recommended for the grant of new Assemblers status.
7. Manufacturer/Assembler’s licenses were also recommended for revalidation and other are under processes after assessment visits during the period under review (Jan-June 2023).

Automotive Development Fund ( ADF)

The Department had meeting with Bank of Industry (BOI) on loan defaulter and modalities of their recovery, for further process to the genuine and value adding ventures.

Memo on monitoring and evaluation on ADF loan beneficiaries and other Council projects were raised and processed.

For effective lunch of Vehicle Finance Scheme, the Department has raised a memo for the training of ADF Committee members on Credit Management and Collection of Receivables: Methods and Apparatus” on the component and vehicle financing in Nigeria. .

Local Content Development in Nigeria

With respect to the automotive industry, local content is the value addition that is done during vehicle assembly where Completely Knocked Down parts, CKD, are used for assembly. These parts are joined, welded, primed and painted. In addition to the above, the local components that are fabricated/sourced from indigenous companies are also added to the list of local content. Labour that is put into the assembly operations is also local content.

Council is planning to hold a strong automotive component producers’ interaction with Industry on;

• Contribution/development of local Content,
• Supporting components manufacturers to develop components,
• Determining items that have competitive advantage in producing and factoring same in Local content map.

The NADDC will support deletion of the components through import discouraging policies and tariff.

Vehicle Finance scheme

Meeting with Bank of Industry in an effort to interfacing with the bank on Vehicle Financing for the roll-out of the scheme, to create market for locally assembled vehicles

End of Life  Vehicles

End-of-life vehicles (ELVs) are motor vehicles that are categorized as waste, generally due to age or accident. End-of-life vehicles (ELV) have become a global concern as automobiles ownership is increasing globally. In 2018, National Bureau of statistics (NBS) reported that Nigeria had about 11.8 million vehicles on the road, and this number is increasing because of our large population, which is a huge resource for secondary raw materials (such as metals) for Nigeria. The management of ELVs is of vital importance for environmental conservation, circular economy, and sustainable development. With Nigeria’s growing population of over 200 million, largest economy in West Africa, and per capita income of $2,097 currently, which are decreasing compared to previous years, most Nigerians opt for used cars which is what they can afford. In addition, tighter legislations in developed countries, lack of infrastructure, and cheaper labour also makes developing countries a destination for End-of-Life vehicles. These factors contribute to making Nigeria an important destination for used vehicles, even vehicles that are imported into neighboring countries are re-imported to Nigeria. Some of the used vehicles imported are near End-of Life or non-functional, however, these vehicles are of value as a source of used parts, scrap material and other materials, Nigeria imports large numbers of new and used vehicles on the average, Nigeria imports over 600,000 vehicles yearly in the early 2000s, these translate to large quantity of both metal and non-metal scraps resources when the vehicles reach end-of life.

BENEFITS OF ELV REGULATION

1. Creation of 40,000 direct and indirect jobs in Nigeria.
2. Recycling of over 140,000 tons of ferrous and non-ferrous metals annually.

• Recycling of over 2million used tyres annually.

1. Recycle millions of litters of used engine oil annually.
2. Generate over 100 billion in annual revenue from the sector.
3. Protect the environment from hazards and

• Keep the roads and highways safer.

STATUS OF ELV REGULATION

1. Formulation of a draft ELV Regulation by NADDC, the Recycling and Economic Development Initiative (REDIN) and Federal Ministry of Justice.
2. Partnership and technical support on the ELV with United Nations Industrial Development (UNIDO)
3. Conducted a Baseline Study of ELVs Recycling in Nigeria