Federal Govt. finally suspends the controversial auto policy plan, NAIDP

09/25/2019

Posted by: Oluwaseun Solomon

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The Federal Government following President Muhammadu Buhari’s order has finally suspended the controversial and long waiting auto policy. Read the story now!

Reports reaching us here at Naijauto from all reliable sources affirm that the Nigerian federal government under the leadership of President Muhammadu Buhari has finally dropped the long waiting NAIDP (National Automotive Industry Development Plan) which has sparked several controversies for quite some time now.  

Federal-Government-suspends-NAIDP-auto-policy

F.G following President Buhari’s directive has just suspended the NAIDP auto policy after 6-years of waiting by the stakeholders

This action by the F.G follows the excessive pressures it claims to be getting from various Nigerian auto stakeholders and OPS (Organized Private Sector) members for a review of the 6-year old auto policy.

Many suggestions also claim that it is possible the president dropped this controversial auto policy bill passed by the Eighth National Assembly, due to various feedbacks it has also received as regards the negative implications of the policy on Nigeria’s development and growth if it were to be signed directly into law without further review.

>>> The 6 year wait for the auto policy has frustrated local auto manufacturers like Coscharis. Coscharis Boss regrets investing ₦1.7B on a local vehicle assembly plant in Nigeria

Adeniyi Adebayo, the current minister of Industry reportedly broke the news regarding this “suspension” of the 6-year old pending auto policy on Friday 20th September 2019. The minister was said to have indirectly revealed some few reasons why the Federal Government has decided to take this step.

According to reports, the Industry, Trade and Investment minister – Mr Adeniyi Adebayo, mainly highlighted the fact that this cancelled 6-year old policy was promulgated under Goodluck Ebele Jonathan – Nigerian former President’s rule and claims it hasn’t yielded the desired outcome since then. The minister also claims that the auto policy had been rather generating uproars, especially among giant automobile operators in the country, majorly because it had to do with local vehicle manufacturing which would impact already existing auto importation businesses.  

>>> Meanwhile China's planned massive importation of used cars to Nigeria will endanger local dealers! Nigerian automakers & dealers' angry over China's importing used cars into Nigeria

Mr Adeniyi Adebayo noted that President Buhari has refused to approve this auto policy because the previous policy had negative impacts on various aspects of the Nigerian economy like;

  • Huge trade diversion between Nigeria and its neighbouring African countries
  • Lower government generated revenue that incapacitated the nation’s economy to actually create more jobs
  • Reduced welfare of citizens and cost of carrying out auto-related business in the country

Mr Adeniyi Adebayo also explained that right from when he had resumed his office as the new Trade, Industry and Investment minister – outcries from the general public and the OPS has overwhelmed him. And all they had been asking for is a thorough review of Nigeria’s overall auto policies because the one done under the 2013 Jonathan’s administration had been long overdue for quite a while, with many unregulated bodies exploiting its current vulnerabilities.  

Minister-Adeniyi-Adebayo-and-President-Buhari-auto-policy

Industry, Trade and Investment Minister – Adeniyi Adebayo says F.G has suspended the 6-years pending auto policy for positive reasons

During Mr Adeniyi Adebayo’s speech, he, however, revealed some positive news about the Federal Government’s move towards proposing a fresh and reviewed auto policy which should spark-up less controversy and benefit everyone.

Below is a record of some of Adeniyi Adebayo’s official statements during the Sept. 20th announcement;

“When this new administration came in this year, and I was appointed as the Minister of Industry, Trade and Investment, the automotive policy is one of the things my ministry looked at. Unfortunately, a bill has been prepared by former administration and it has been brought to the attention of Mr. President to sign it by the previous National Assembly, having passed the bill. Then when Mr. President received it, he passed it out to the stakeholders and from the responses he received from them, he felt that it was not well received and accepted by them. That is why he refused to assent to it.”

“What we have decided to do in my ministry is to engage all the stakeholders and we are going to start a fresh auto policy and get it right. The last one that was done was not gotten right and we want to get it right this time around."

“So, we are going to engage all the stakeholders. Within the next couple of weeks, I want to visit all assembly plants in the country and call a meeting of all the owners of such plants for us to deliberate on a new auto policy for the country.”

“This government is desirous in seeing to it that cars can be gotten by citizens at affordable and cheaper prices. So, we need to sit down with you (owners), we need to engage you and what can be done so we can produce cheap vehicles that Nigerians can buy and use."

“So, that is where we are as a government and I can assure you we are going to engage you and you will advise us on the direction to go. You are the people who are going to prepare whatever policy we want to come up for the auto sector. So, we need you and we need to benefit from your experience.”

Going by these words of Mr Adebayo, we believe there is still a light of hope for all Nigerian local automakers like Innoson Motors. Nonetheless, we await the new policy to be put forward by the Federal Government.

>>> For fresh updates like this, click -> automobile & transportation public policies

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Oluwaseun Solomon

Oluwaseun Solomon

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Oluwaseun Solomon is a prolific and diligent automobile writer at Naijauto.com. He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

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