Remarks of the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite at the Nigeria Auto Industry Summit (NAISU) held in Lagos, June 27, 2024. The Minister was represented by Deputy Director, the Industry Development Department, Mrs Olumuyiwa Ajayi-AdeProtocol
It is a great honour to stand before you today as a guest of honour at this significant event. I would like to express my heartfelt appreciation to the Nigeria Auto Journalists Association and its collaborators for organizing this gathering and for their dedication to promoting the automotive sector in Nigeria. This event is timely and essential as we navigate through economic challenges and explore avenues for sustainable growth.
Today, I want to focus on a critical aspect of our national development “reviving Nigeria’s economy through the automotive sector”. The automotive industry has the potential to be a cornerstone of our economic recovery, offering numerous benefits including job creation, technology transfer, and the development of ancillary industries.
The Role of the Automotive Sector in Economic Revival include:
i. Job Creation: The automotive industry is labour-intensive and has the potential to create thousands of jobs across the value chain from manufacturing and assembly to sales, maintenance, and logistics. By fostering a robust automotive sector, we can significantly reduce unemployment rates and provide sustainable livelihoods for our citizens.
ii. Technological Advancement: The automotive sector is a driver of technological innovation. Through partnerships with global automotive giants and the establishment of local research and development centers, we can facilitate the transfer of cutting-edge technologies to Nigeria. This will not only enhance our manufacturing capabilities but also promote innovation in other sectors.
iii. Industrialization and Economic Diversification: The development of the automotive industry will spur the growth of other related industries such as steel, rubber, plastics, and electronics. This industrialization will diversify our economic base, reducing our dependence on oil and making our economy more resilient to global market fluctuations.
I want to assure you that the government is committed to creating an enabling environment for the automotive sector to thrive. We have introduced several policies and initiatives aimed at supporting this industry, which are:
The National Automotive Industry Development Plan (NAIDP): This plan provides incentives for local manufacturing, including tax breaks, import duty reductions on essential machinery, and investment-friendly regulations. It
Infrastructure Development: We are investing in critical infrastructure such as roads, ports, and power supply to support the logistics and operational needs of the automotive industry. Improved infrastructure will reduce production costs and enhance the competitiveness of locally manufactured vehicles.
Public-Private Partnerships (PPPs): We are fostering collaborations between the government and private sector stakeholders to drive the development of the automotive industry. These partnerships will leverage the strengths of both sectors to achieve common goals.
Despite the promising outlook, we acknowledge the challenges that lie ahead. Issues such as inadequate access to finance, limited local content in vehicle production, and the need for policy consistency must be addressed. The government is committed to working with industry stakeholders to overcome these challenges and create a conducive environment for growth.
Finally, Ladies and gentlemen, the automotive sector holds the key to reviving Nigeria’s economy and positioning our nation as a hub for automotive manufacturing in Africa. With the right policies, investments, and collaborative efforts, we can transform this sector into a significant driver of economic growth and development.
I urge all stakeholders; government agencies, private sector players, financial institutions, and development partners to join hands in this endeavor. Together, we can build a vibrant and sustainable automotive industry that will drive Nigeria’s economic revival and ensure a prosperous future for all.
Thank you, and I look forward to our continued collaboration and success.
