The Nigeria Automobile Development and Design Council (NADDC) has advocated for the establishment of a mortgage system and incentives for automobile manufacturing companies to enable them meet their production needs.
Joseph Osanipin, director general of NADDC, speaking at a briefing in Abuja, emphasized the need for transformative policies to strengthen the local automobile industry and 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,”
Osanipin also 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 by improving access to locally manufactured vehicles,” Osanipin stated.
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 also raised concerns over the impact of used vehicle imports on the growth of Nigeria’s local automobile sector, calling for urgent measures to address this trend.
He urged the government to promote locally manufactured vehicles through adequate patronage to boost industry growth and support domestic manufacturers.
Highlighting ongoing reforms, Osanipin revealed that a review of the Automobile Act is in progress, with amendments currently under consideration by the Attorney General and Minister of Justice. He requested the Minister of State for Industry, Trade, and Investment, to expedite the review process to reposition the sector for greater impact.
On his part, John Owan Enoh, minister of State for Industry, Trade, and Investment, reiterated the Federal Government’s commitment to revitalizing the Nigerian automobile sector. He called for radical approaches to tackle key challenges in the industry, including issues related to spare parts and maintenance.
“To stimulate demand for locally made automobiles, issues of spare parts and maintenance must be tackled head-on,” the Minister stated.
He urged local manufacturers to establish more maintenance workshops and spare part factories, cautioning that increased vehicle production without corresponding maintenance infrastructure could jeopardize the sector.
The Minister assured stakeholders of the government’s dedication to addressing these issues, emphasizing their importance for national economic development.
According to a statement signed by Adebayo Thomas, Director of Press and Public Relations, at the ministry, directors unanimously agreed that addressing spare parts and maintenance challenges would stimulate demand for locally made automobiles, with a ripple effect on related sectors, particularly the petrochemical sub-sector.
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