50% of vehicles on Nigerian roads in 2031 will be electric cars ― NADDC DG

The Director-General, National Automotive Design and Development Council (NADDC), Jelani Aliyu, has hinted that in the next 10 years, 50% of the vehicles on the country’s would be electric vehicles produced and assembled in Nigeria.

This was as he said there is an arrangement with Jaiz Bank where Nigerians can buy brand new electric or gas vehicles on loan and pay over the period of five years.

He made this known while speaking with newsmen in Kaduna on Wednesday.

According to him, the automobile companies currently producing and assembling in Nigeria, including Dangote, PAN, Honda, Elizade, Innoson and Lanre Shittu among others have invested over N500 billion in the industry as at 2019.

Aliyu noted the combination of the automobile companies in the country, currently have the capacity to produce up to 400,000 vehicles per year and they currently employ over 50,000 Nigerians.

“In the 70s and 80s, Nigeria had Peugeot, Volkswagen, Anamco, Styre, Leyland and things were looking up to and the automotive industry was booming, with a lot of potentials. We had to brand new vehicles and we knew nothing like imported used vehicles; everyone who could buy a new car.

“Peugeot alone had 40% local contents; parts were coming from here in Kaduna, in Lagos, Nnewi and Jos, we were producing over 140,000 vehicles per year here in Nigeria and people were buying them up. Then, in 1986, something very bad happened. Because we were so dependent on crude oil, the price of crude oil dropped from $27 to below $10 and that threw Nigeria into recession.

“Those Nigerians who could buy brand new Peugeot 504 could no longer afford them. So, the Peugeot, the Volkswagen had to close down and a lot of those producing vehicles, not because the government said, not because the companies left, but because the market had dried up.

“So this administration said something has to be done and the National Automotive Design and Development Council got the approval of the Federal Executive Council to implement the National Automotive Industry Development Plan, which has five key elements including; helping to promote local production, development of infrastructure, development of standard and market development.

“As a result, we are working on 10 years tax holiday for any company that comes up to produce vehicles in the country. Also we there is only 10 per cent import duty on vehicles parts imported into the country for assembly here. And when vehicles are assembled here, they attract zero duty and zero levies.

“Due to these policies, a lot of companies have connected to the Nigerian automobile industry. As of 2019, over N500 billion had been invested by these companies.

“We have Dangote, Innoson in Nnewi, Lanre Shittu, Elizade, Honda and others who are actively producing vehicles in Nigeria. Many Nigerians are still surprised, when you tell them vehicles are made here, they expect to see the vehicles rough and old-fashioned. But the vehicles are of the same standard as those produced anywhere around the world.

“The automobile companies presently producing in Nigeria, can produce up to 400,000 vehicles per year, but they are not presently producing that, because the market is not there. Yet the industry has today employed up to N50,000 people and we hope it will continue to grow,” he said.

He said electric vehicle is really better for the Nigerian environment where the culture of maintenance is low, as the vehicles do not have engines that require fuel, engine oil, plugs, rings and piston, which need regular repairs.

 

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