NADDC’S Plot to Save 8 Billion Naira
- by Ayomide philip
- 8 months ago
The National Automotive Design and Development Council (NADDC) have vowed to stop the importation of used cars to Nigeria. The yearly importation of used cars is estimated to cost 8 billion dollars yearly. To help achieve this goal, the NADDC had sealed a pact with Volkswagen conglomerate. The memorandum of understanding provides that Nigerian government would finalise the Nigerian Automobile Policy(NAP), which includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles. In return, Volkswagen would implement a phased approach in relation to the assembly of vehicles and train its initial employees on automotive skills with a goal towards establishing Nigeria as an automotive hub on the west Coast of Africa.
The NADDC is a governmental parastatal established by Act 83 of the Federal Ministry of Industry, Trade and Investment to create an enabling environment for the manufacture of vehicles in Nigeria. These vehicles should be of international standard, sell at competitive prices and use local human and material resources. To achieve this goal, they attempt to encourage the manufacture of vehicles in Nigeria. According to the NADDC Managing Director, Jelani Aliyu said ‘’If you watch closely, you will find that the National Automotive Industrial Development Plan (NAIDP) is working closely with NADDC and has started to bring back all vehicle manufacturing companies into the country”.
One of the major problems with the manufacture of cars in Nigeria is the problem with the price. Although companies like Innoson Motors, Honda, and Peugeot have begun manufacturing cars in Nigeria, they still don’t have the clout that brands like Toyota has in Nigeria. The cost of production in such companies might be negatively affected by infrastructural problems and the simple cost of purchase of a new car (most Nigerians purchase used cars). It is hopeful that with the encouragement of the government, through the creation of a Vehicle Financing Scheme and the creation of structural development plan, the problem of finance and infrastructure would be settled. According to the NADDC Managing Director, Jelani Aliyu said “We are also working with NAIDP to put in place Structured Development plan. We are building three automotive industrial hubs in Kaduna, Osogbo and Nnewi.
“The one at Nnewi is in advance stage with a master plan. We are working with the Bank of Industry and several state governments to have our industrial parks to take care of infrastructure.’’
He also affirmed that the council had concluded the arrangement to establish Vehicle Financing Scheme that will make it easier for customers to buy vehicles with an initial 5-10 percent deposit while the balance payment is spread across several years.
We commend the effort of the National Automotive Design and Development Council (NADDC) on their new agreement with the Volkswagen conglomerate. We are hopeful that when NADDC continues luring vehicle manufacturing companies to Nigeria, this would translate to more job opportunities and an opportunity to acquire automotive skill for Nigerians. We also hope that NADDC would transcend the limit of Act 83 of the Federal Ministry of Industry, Trade and Investment and also encourage Nigerian owned vehicle manufacturing companies.