Nissan Pathfinder: Nissan is one of the car makers that recently started building cars in Nigeria.
Nigeria plans to raise the portion of local manufacturing in the automotive industry to 80 percent by 2023 as Africa’s most populous country seeks to cut imports and diversify the economy away from oil, the industry regulator said.
The West African nation currently imports “almost 100 percent” of vehicles, Luqman Mamudu, director of policy and planning for the Abuja-based National Automotive Council, said in an e-mailed response to questions on Tuesday. Developing manufacturing and assembly plants would create jobs and reduce the $9 billion annual cost of bringing in vehicles and components, he said.
Nigeria plans to assemble 500,000 vehicles per year over the next five years, compared with 10,000 units in 2014, after awarding 36 companies a production license, Mamudu said. Global automakers now building capacity include Japanese companies Honda Motor Co. and Nissan Motor Co., Ford Motor Co. of the U.S. and Hyundai Motor Co. of South Korea, as well as local carmakers.
President Muhammadu Buhari has pledged to diversify Nigeria’s oil-dependent economy, which has suffered as crude prices plunged by more than 50 percent since June last year. Economic growth is forecast to drop to 3.2 percent this year from 6.3 percent in 2014, the slowest pace since 1999, according to a Bloomberg survey of economists.
“The Nigeria government is committed to addressing the issue of rail and power,’’ Mamudu said. The regulator will partner with operators to “develop specialist automotive supply parks to ease set up challenges’’ for manufacturers, he said.
Nigeria will allow car producers to import two fully-built units at a discount duty of 35 percent for cars and 20 percent for commercial vehicles for every one built locally, according to Mamudu. That compares with the standard 70 percent tariff on imported cars, he said.
Equipment used to assemble cars can be imported duty free, he said. Other incentives include a crackdown on vehicle smuggling and tax holidays for producers.
Read more: Bloomberg Business – Asia Edition
- Nigeria will be Africa’s next automotive hub (Report): PwC
- Hyundai opens first car assembly plant in South Africa
- Innoson Unveils First Made-in-Nigeria Cars
- Volkswagen planning new auto assembly plant in Nigeria: An interview with Segun Aganga, Nigeria’s Minister of Industry, Trade, and Investment (Video)
- South Africa targets auto sector with fuel cell plant
- Ford to start assembly in Nigeria
- Volkswagen brings car assembly back to Nigeria to tap Africa growth
- Africa’s richest man Dangote makes bid to acquire controlling stake of Peugeot Nigeria
- Automobile assembly revs up in Nigeria
- Volkswagen (VW) to start assembling cars in Nigeria with Stallion Group
- Car makers in the driving seat of South Africa’s economy
- In 35 years, Nigeria could be the automotive capital of Africa
- South Africa in Talks With Five Automakers About New Plant
- Kia Motors to assemble cars in Ethiopia
- Ford invests $167 million in South Africa to build Everest SUV
- Nigeria’s New Direction: Amy Jadesimi, MD, LADOL (Lagos Deep Offshore Logistics Base)
- Chevy Volt’s designer, Jelani Aliyu, has been appointed boss of Nigeria’s automobile agency (Infographic)
- Lagos, Nigeria: Africa’s Big Apple
- No Dollar Access Imperils Nigerian Retailers, Spurs Prices
- Nigeria’s automotive industry shifts into high gear
- US-Africa Business Forum: This is the Moment to Invest in Africa (Video)
- Nissan makes first made-in-Nigeria car
- In Africa’s oil capital, Africa’s richest man built an empire on sugar
- Fool Nigeria Once, Shame on You. Fool Nigeria Twice …
- Kia to produce 25,000 vehicles per year in Lagos, Nigeria
- Orji Uzor Kalu: The Nigerian Millionaire Who Wants To Negotiate With Boko Haram
- Global X MSCI Nigeria ETF: Speculative multi-year play approaching attractive valuation
- Nigeria aims to end refined petroleum imports within 18 months, says Kachikwu
- Nigeria state oil group NNPC taps private sector for top ranks
- Aliko Dangote: In for the long haul
- It’s naira or never – Nigeria needs decisive action on its currency: Oluseun Onigbinde, Co-Founder, BudgIT
- Is #Nigeria’s central bank governor Godwin #Emefiele being made a scape goat? Are low oil prices good for #Nigeria? #ABCView
- Replace Nigeria’s patrimony of oil with the politics of hope: Kingsley Moghalu, former Deputy Governor of the Central Bank of Nigeria
- Nigerian cabinet hints at austere rule
- Nigeria’s Buhari sends second batch of cabinet nominees to senate
- Volkswagen expands Africa strategy with Kenya car assembly plant
- Nigeria’s Buhari nominates Fashola, Amaechi as ministers
- Nigeria’s Buhari submits cabinet nominees, announces he will serve as Petroleum minister
- Nigeria’s new oil chief Emmanuel Ibe Kachikwu announces restructuring & audit
- Africans Open Fuller Wallets to the Future