Senate targets laws to reduce cost of producing vehicles in Nigeria

Senate Committee on Industry and National Automotive Design and Development Council {NADDC} has promised to work towards laws that will reduce the cost of assembling vehicles in Nigeria.

This was made known on Monday when its members visited assembly plants in Lagos as part of its oversight functions.

Places visited include Dangote Sinotruk West Africa Limited, Nord Automobiles, and Simba TVS.

The committee, led by the vice chairman, Senator Shuaibu Lau, also had Senators Sadiq Umar, Victor Umeh, Ekong Sampson, and Benson Agadaga onboard.

Also on the visiting team was the Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Joseph Osanipin, Director, Policy, NADDC, Mr Sani Musa and Deputy Director, Press, and Protocol, NADDC, Mrs Felicia Oyebolu.

Speaking shortly after inspection of the assembly plants, Senator Lau said the visit was geared towards helping the automotive industry because the players are key to the growth of Nigeria’s economy.

Lau also called on the vehicle assemblers to liaise with the NADDC Director General to come up with areas where they will need the lawmakers to enact laws which can help in reducing their cost of production.

The coming laws are also to help in providing job opportunities.

The senator representing Taraba North said; “We want them to expand and we have heard some of their problems and we will definitely look at them. When we look at them, those that require pieces of legislation, we will do; those that require advice to the executive, we will advise them with a view to solving the problem. We agree that there are hard time but I believe we can surmount them”.

On compliance with backward integration, policy, Lau said; “it was evident that there is serious attempt by the assemblers for backward integration. And in one, we have seen it. The other one, they have intention to have started but they have not gone far. We encourage them to keep the momentum so that we reach our final destination”.

Also speaking, Osanipin said oversight duty is statutory and that the senate committee has the statutory right to visit and perform its roles.

The NADDC DG who said he was impressed with what the visiting team saw, said they had given advice where necessary.

He hoped that by the time the committee would return in the first quarter of next year, there would have been some changes, improvements, and an increase in percentage of local components the assemblers are using.

“These are the areas we want. We also discussed their challenges, some of them may require some legislation, and some will require one or two changes in policies. And some of them may also require themselves to do some things differently. That is why we met them and discussed with them.

“In 2025, we expect to have more backward integration and increase in local component contributions to the automotive industry. We want auto industry to create more jobs and stimulate the economy more. We can do that incorporating more local components in the production of tricycles and motorcycles in Nigeria”.

Other areas the senate team wanted the auto manufacturers to look at, include compliance with backward integration, workers’ welfare, job creation, pricing, and outsourcing of raw materials.

The senate committee members alongside the NADDC team who toured the three assembly plants for several hours, were taken through the vehicle manufacturing processes in each of the plants visited.