FG committed to completion of Ajaokuta steel, says NADDC

According to Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC), the federal government has reaffirmed its commitment to concluding the Ajaokuta Steel Company as soon as possible in order to facilitate the local production of automobiles and spare parts for domestic consumption.

In his speech, Osanipin stated: “The government cannot permit the annual importation of more than 400,000 used cars into the nation. We’re sick of being used as a landfill, and we’re already collaborating with relevant parties to make sure that used cars older than 20 years old aren’t allowed to be imported,” he stated.

During a public sector engagement on the implementation of the Nigerian Automotive Industry Development Plan (NAIDP 2023-2033) held in Abuja, he revealed this information.

He promised that the plant’s completion would not only preserve the country’s limited foreign exchange but also enable local production of auto industry spare parts, generating a great deal of job opportunities for the populace. “We need to start discussing age restrictions on used cars with our customs colleagues. We cannot permit Nigeria to serve as a used car dump.

It is not acceptable for used cars from 2005 or 2007 to be imported into the nation, and we will work with the appropriate authorities to stop this from happening. The minimal requirement for cars entering Nigeria will need to be specified, he stated. He continued by saying that it is intolerable to import cars into Nigeria without airbags.

He emphasised the importance of stakeholder participation in the creation and execution of the Federal Government’s automotive policy, pointing out that the NAIDP was created to address important industry issues like low production levels, a lack of local content, and a lack of funding, among others.

Since that is the only way we can expand our local content and develop our parts, we are going to begin implementing what we refer to as the deletion policy, which is included in the NAIDP under review. We’re trying to figure out which parts of the component we can make in Nigeria. We are examining the manufacturing of batteries, plastics, tyres, and other items. The sooner we find these and component suppliers who can meet our requirements, the better off we will be, he stated.

He emphasised the value of standards in production, saying that if parts are produced according to the standard, they will be available to both existing markets and assemblers. He continued by saying that the council and other pertinent organisations would be able to stop importing any locally made goods in the nation if these local components were produced.

If we can get this going, we will be able to fulfil NAIDP’s mission by gradually increasing our local content, hiring Nigerians, and attracting more investment to the industry. In order to preserve foreign currency and strengthen the Naira, we must increase our local content,” he said.