Prof. Peter Onwualu, the Director-General of the Raw Materials Research Development Council (RMRDC), has said that a committee had been set up develop local components for the automotive industry in Nigeria.
Onwualu disclosed this on Monday at a stakeholders meeting of the Nigerian Automotive Manufacturers Association (NAMA) held in Abuja.
He said that the committee consists of RMRDC, NAMA and the National Automotive Council (NAC), to be headed by Dr David Obi, Chairman, Motor Vehicle and Miscellaneous Assembly Sectoral Group of Manufacturers Association of Nigeria (MAN).
The Director-General said that the committee would identify and evaluate policies and strategies to resuscitate and facilitate the local content development of the sub-sector.
Onwualu said that the committee had proposed the removal of the maximum 20 per cent import duty tax on Completely Knocked Down (CKD) auto parts.
He said that the committee also proposed the abolishing of the 5 per cent Value Added Tax on local finished products to encourage local production.
Onwualu disclosed that a proposal had been sent to the Federal Executive Council, requesting the government to adopt favourable policies to revitalise the sector.
He noted that the success of local manufacturing of vehicles in Nigeria was dependent on the development of local components.
“Nigeria is a nation endowed with abundant raw materials; as such success in indigenous automotive manufacturing is feasible.
“The production of 50 per cent market share of vehicles needed under the federal government mass transit programme is achievable, if the indigenous automotive manufacturing sub-sector is given adequate attention by the Nigeria government.”
On the meeting, Onwualu said that the stakeholders had identified major challenges facing the automotive manufacturing sub-sector, including need to resuscitate the manufacturing of local components and adequate Federal Government intervention.