There are reports that the Federal Government yesterday approved the Automotive Industrial Policy Development Plan for the country.
The approval was made during a Federal Executive Council meeting presided over by President Goodluck Jonathan.
The government hopes to significantly reduce the high vehicle importation bill, which stood at $3.4bn (N550bn) in 2012, through the policy.
As a first step, the Federal Government said all vehicles purchased by it would be from local assembly plants, except they were specialised and could not be produced in the country.
The ministers of Information, Mr. Labaran Maku; Federal Capital Territory, Bala Muhammed; and Industry, Trade and Investment, Olusegun Aganga, briefed newsmen at the end of the meeting.
Aganga said the policy was aimed at transforming the Nigerian automotive industry whilst attracting investments into the sector.
He said a situation where the nation spent N4.2bn on the importation of vehicles into the country in 2010 was not in the best interest of the country.
He said, “A transformed automotive industry will realise its potential as a major driver of economic growth and diversification, job creation, local value addition, and technology acquisition.
“These recommendations were adopted at various conferences and consultations with stakeholders, including some original equipment manufacturers. After deliberation, the Council approved the Automotive Industrial Policy Development Plan.
“Council also approved that the government should direct that all vehicle purchased by the government should be from the local assembly plants unless it is specialised in nature and the NAC has certified that it is not produced in Nigeria
“The Council approved that the recommendation should be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy.”
Aganga added that the government was working on tariff to encourage local manufacture and discourage importation of vehicles
The approval was made during a Federal Executive Council meeting presided over by President Goodluck Jonathan.
The government hopes to significantly reduce the high vehicle importation bill, which stood at $3.4bn (N550bn) in 2012, through the policy.
As a first step, the Federal Government said all vehicles purchased by it would be from local assembly plants, except they were specialised and could not be produced in the country.
The ministers of Information, Mr. Labaran Maku; Federal Capital Territory, Bala Muhammed; and Industry, Trade and Investment, Olusegun Aganga, briefed newsmen at the end of the meeting.
Aganga said the policy was aimed at transforming the Nigerian automotive industry whilst attracting investments into the sector.
He said a situation where the nation spent N4.2bn on the importation of vehicles into the country in 2010 was not in the best interest of the country.
He said, “A transformed automotive industry will realise its potential as a major driver of economic growth and diversification, job creation, local value addition, and technology acquisition.
“These recommendations were adopted at various conferences and consultations with stakeholders, including some original equipment manufacturers. After deliberation, the Council approved the Automotive Industrial Policy Development Plan.
“Council also approved that the government should direct that all vehicle purchased by the government should be from the local assembly plants unless it is specialised in nature and the NAC has certified that it is not produced in Nigeria
“The Council approved that the recommendation should be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy.”
Aganga added that the government was working on tariff to encourage local manufacture and discourage importation of vehicles
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