Luqman Mamudu is an automotive development expert and was director of policy and planning at the National Automotive Design and Development Council (NADDC) during the launch of the NAIDP in 2014. He spoke with journalists on the progress and challenges of Nigerian Automotive Industry Development Plan (NAIDP) as its first 10 years (2014-2024) come to a close. PAUL OGBUOKIRI reports

Has Nigeria really made any progress in the automotive industry in the first 10 years of the NAIDP?
We certainly have made some considerable progress in the industry. For one, 90 per cent of the auto manufacturing and assembly companies earlier established in Nigeria (but became moribund) were revived. Note my word, revived not revitalized because they still have not reached their full potential in capacity utilization. The auto manufacturing and assembly companies, which were established between the 1970s and early 1980s, their combined capacity met 70 per cent of Nigeria’s automotive needs.

Secondly, the Nigerian Automotive Industry Development Plan, through its robust fiscal provisions, resulted in an investment pipeline through technical partnership and their Nigerian brand distributors, dealers and not just entrepreneurs.

The result was an upsurge in installed capacity from a mere 5,000 units to about 450,000 units per annum. The plants include Peugeot Automobile of Nigeria (now PAN Nigeria), VWON Nigeria (now Stallion Motors), Fiat NTM (now NTM), ANAMMCO, and Steyr. There are also Nissan, Yutong buses, Ford, Kia, MAN Trucks, Hyundai, Sinotruk, and more.

In fact, some OEMs (Original Equipment Manufacturers) like Honda, have set up assembly plant operations directly. Many local entrepreneurs led by Innoson Vehicle Manufacturing (IVM) also set up robust manufacturing and assembly operations.

Others within this space include OMAA and Jetvan Automobile Motors. All these happened within four years of the NADIP tenure in 2017.

So what went wrong with capacity utilization?
Unfortunately, capacity utilization never deepened beyond 5 per cent due to challenges with the implementation of the programme pillars. The fiscal policy incentives were practically removed by 2019 and the public therefore mobilized against it.

Two of Nigeria’s automotive development key game-changing programmers were abandoned. They are the Investor Confidence Bill or NAIDP Bill, about which you asked and the Automotive Consumer Credit Fund already under consideration by the Central Bank of Nigeria.

What is your view on the N20 billion auto finance scheme coming through the CreditCorp launched by the Federal Government?
It is a very welcome development as it revisits one of the key pillars of the NAIDP.

The establishment and appointment of board of consumer credit access to all Nigerian consumers is a welcome development. Generally, such an institution is key as an inclusiveness policy and will benefit everyone, including the Nigeria automotive assemblers, especially if it leads to increased demand for their products.

Note that the NADDC may have leveraged its platforms to launch a targeted N20 billion funds for local automotive manufacturing companies only. I believe it is an attempt to resuscitate one of the game-changing inbuilt programmes of NAIDP long abandoned.
If well funded and implemented, the Nigeria automotive industry is in good times. Let me mention here that one of the key achievements of NAIDP was the collaboration of NADDC and Equipment Leasing Company of Nigeria (ELAN) to push for the total reform of leasing law in Nigeria. This will impact the access of CreditCorp resources positively.

Again, Nigeria seems to be shifting attention away from electric vehicles with a focus on the CNG. How can the country combine the two so as to meet the global electrification target and contribute to reducing carbon emission?
That shouldn’t really be a challenge. The present government has chosen to pursue CNG as a route to achieving carbon emissions reduction. Fine! This is good as long as appropriate resources are well targeted to the industry or stakeholders.
However, I believe it is best to encourage existing and prospective automotive assembly plants to install lines to build new CNG propelled automobiles rather than re-kitting.
Such vehicles will have more engineering integrity than the re-kitted ones. Re-kitting should be limited to short term measures for used vehicles only.
On the other hand, electric vehicles’ technology agenda can be pursued alongside the global adoption pushed by technology and government policies/regulations. Nigeria can meet its overall emission reduction targets faster with added gains from ongoing CNG programmes. Nigeria should launch a policy framework for automotive vehicles’ electrification in the NAIDP 2 which I learnt is being processed by the NADDC.
Overall, what is important is for Nigeria to open mobility space for goods and services to flow freely. Automobiles/roads play a key role alongside air, rail, waterways and broadband mobility.