NADDC boss calls for legislative action to support FDI in auto sector

…As EVDP enters final ratification stage, implementation

A piece of good news seems to be in the horizon as the Electric Vehicle (EV) Development Plan in Nigeria is entering its final stage for ratification and implementation.

Director-general of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, stated during a validation workshop in Abuja that the Plan would be adopted and ratified in the coming weeks.

The Plan aims to position Nigeria as a front rumner in vehicle electrification and sets a goal for achieving net-zero emissions by 2060. It includes a timeframe, specific percentages, and targets that must be met.

One of the main focuses of the Plan is promoting local production of electric vehicles, with a target of at least 30 per cent local production.

To support the adoption of EVs, the Plan mandates federal, state, and local governments, as well as companies with government contracts, to purchase and patronise EVs. This is driven by the need for cost-effective and sustainable transportation solutions due to the higher costs of petrol and diesel.

Aliyu emphasised the importance of developing indigenous vehicles with local content and intellectual property tailored to Nigeria’s extreme conditions. The aim is to provide a more cost-effective transportation system for Nigerians. He also highlighted Nigeria’s renewable energy and natural resources, such as lithium and petrochemicals, that can power EVs.

He said the NADDC, in collaboration with the private sector, is already working towards deploying charging points along highways and road networks to establish an effective EV ecosystem. On the timeframe for this, he said by year end.

To ensure effective implementation of the Plan, Aliyu recommended that the federal government pass the 2023 National Automotive Industry Development Plan Bill to provide legislative support and attract foreign direct investment (FDI) in the automotive sector.

Aliyu suggested that the government enforce compliance with Executive Order 003, which mandates the procurement of locally produced vehicles by government ministries, departments, and agencies (MDAs) as well as private companies working on government contracts.

He also recommended revamping the public transportation system through a Commercial Vehicle Replacement Programme that includes a 30 per cent ratio of electric vehicles by 2024, streamlining ports operations, and providing dedicated corridors for automotive imports and exports.

In addition to the legislative support, Jelani proposed several other measures.These include the approval of the plan and policy, dedicated funding for a Vehicle Finance Scheme focused on EVs to enable affordable nationwide purchases, stricter vehicle emission regulations, the establishment of an Electric Vehicle Development Fund, and the development of necessary EV charging infrastructure.