Nigeria plans to raise local vehicle production to 80% by 2023, according to a report by the Cape Times. In a statement, Luqman Mamudu, director of policy and planning for the National Automotive Council (NAC), said, "The country plans to assemble 500,000 vehicles a year over the next five years, compared with 10,000 units in 2014, after awarding 36 companies a production license." The development of manufacturing and assembly plants will create jobs and reduce the USD9 billion annual cost of bringing in vehicles and components.
Significance: The Nigerian government implemented the National Automotive Industry Development Plan (NAIDP) in 2013. The NAIDP raised duties on imports of completely built-up (CBU) units in Nigeria sharply to 70% from 20%. This increase was intended to discourage vehicle imports in the country and encourage local production. Following the move, several automakers including Hyundai, Nissan, Ford, and Volkswagen (VW) have started assembling vehicles in Nigeria. Having beaten expectations, the National Automotive Design and Development Council (NADDC) recently suspended issuing licences for new vehicle assembly plants.
