BUSINESS

AUTOMOTIVE INDUSTRY PLAYERS SHOW SUPPORT FOR NADDC HEAD
Nigeria’s automotive industry has expressed strong support for the Director-General of the National Automotive Design and Development Council, Oluwemimo Osanipin, while cautioning that inconsistent policies are hindering investment and growth.
During the 45th Annual General Meeting of the Association of Automobile, Boatyards, Transport Equipment, and Allied Employers of Nigeria (AABTEAEN), held last week at Honda Manufacturing Nigeria Limited in Ota, Ogun State, AABTEAEN President Otunba Jaiyesimi praised Osanipin’s background in the private sector.
“We believe that whatever he is doing now, he should be able to get it,” Jaiyesimi, also CFAO Motors’ Deputy Managing Director, said in a statement on Wednesday.
“But he needs to carry the members, the real practitioners within the automotive sector, along. So that at least for once, we can get out of this protracted formulation of policy and get to the actual implementation,” he said.
Jaiyesimi criticized the frequent changes in Nigeria’s automotive policies since 2014, stating that these inconsistencies have deterred potential investors.
The NADDC’s registration of 54 assemblers was a “mistake,” he argued, noting that up to 60 per cent of committed players have ditched local assembly due to an unviable market. “You don’t see that many assemblers anywhere else globally,” he said.
Speaking on tariffs, he said, “Duties on fully built vehicles versus locally assembled ones often make importing cheaper,” Jaiyesimi said, urging a tariff rethink to boost domestic production.
He also called Nigeria’s 40 per cent local content target unrealistic. “Tires, glass, batteries, steel, none are made here anymore,” he said, pointing to the collapse of local manufacturing and erratic power supply.
“The government’s got to get practical. Attract OEMs to build plants for these components before preaching import substitution.”
Jaiyesimi called for the establishment of a stable environment for manufacturers and emphasized the importance of involving stakeholders in the development of effective policies. He warned that without these measures, Nigeria’s automotive ambitions will remain stalled.
While Osanipin’s leadership brings hope, the industry’s patience is wearing thin. Investors are closely monitoring whether Abuja can implement reforms that live up to the NADDC chief’s commitments.
He added that the government needs to make a bold move by first creating an enabling environment for OEMs to operate. “Let them come and cite their production plants for these basic components before we can start talking about import substitutions.”
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