Article Summary
- The NADDC DG has said that the government has provided a 10-year tax relief for EV manufacturers in Nigeria.
- This move is expected to increase investments in Nigeria’s auto sector.
- The NADDC in recent years has been building human and infrastructural capacity for electric vehicles.
The Nigerian government has enabled a 10-year tax relief for in-country electric vehicle manufacturers.
This is according to Jelani Aliyu, the Director General of the National Automotive Design and Development Council (NADDC). He said this during the West Africa Automotive Show (WAAS) held recently in Victoria Island, Lagos.
ThisDay reports that the Director General, who was represented at the event by a Deputy Director of the Council, Segun Omisore, said the Nigerian government has made it easy to attract investments in the automotive sector.
He said in his words:
- “The federal government has recently approved the new Auto policy 2023 to 2033, the objectives of the new policy include, among others; the provision of a legal framework for the development of a competitive and sustainable automotive industry in Nigeria.
- “It creates an environment that allows existing assembly plants to survive, grow and attract other original equipment manufacturers, and local content suppliers facilitate the transfer of technical know-how and technological skills for the development of the automotive industry.
- “It positions Nigeria’s automotive ecosystem as a leading centre for automotive production in Africa. The policy also promotes investment in the auto sector and fiscal incentives which includes additional tax relief for 5 years for assemblers or manufacturers of automotive components and products, and 10 years for assemblers/manufacturers of electric vehicles and components used in electric vehicles and many other incentives provided.
- “We will continue to support all our stakeholders in the development of the industry by providing the necessary policy framework and the Investment Promotion incentives to support the industry as the new policy provides policy direction and investment promotion incentives for the first time to electric and gas-powered vehicles development in Nigeria.”
It is important to note that the policy cited intends to enable the exponential increase in the local production numbers of vehicles, reaching 40% local content, and attaining 30% locally produced electric vehicles, generating one million jobs, and enforcing patronage of locally produced vehicles by government and companies working on government contracts as well as boosting research and development and technology transfer.
What you should know
In September 2022, Jelani Aliyu told Nairametrics in an exclusive interview, that Hyundai Kona Electric, Jet Systems Motors, GIG Logistics, Max-NG, and Phoenix are the active electric vehicle players in Nigeria.
According to him, the NADDC has built 18 motor training centres across the country and will be using these as platforms for technology transfer and to train technicians and mechanics on electric vehicles.
Aliyu also said that the NADDC had built 100% solar-powered, off-grid electric vehicle charging stations in Sokoto, Lagos and Enugu, where anyone can charge their electric vehicles