The Director General/Chief Executive Officer (CEO), National Automotive Design and Development (NADDC) , Mr. Oluwemimo Osanipin, in a chat with AYOYINKA JEGEDE, spoke on how Nigeria first policy will aid job creation and stimulate the economy.

How will the Nigeria First Policy impact the automotive sector?
The Nigeria First Policy, when fully implemented, will have a great impact on Nigeria’s automotive sector because it is meant to expand the market. And the government is the number one customer when it comes to buying automobiles; hence the patronage by government is going to expand the market.  It is going to lead to more sales of locally manufactured goods and when you sell more, you are going to produce more.

What it means is that more patronage will lead to more production, which in turn will lead to more jobs and the economy will be stimulated

When you buy foreign goods, you are boosting the market of a foreign company; you are creating jobs in foreign countries. But when you patronise locally made vehicles, you are providing jobs locally.

It means there will be job creation, the economy is going to be stimulated, and foreign exchange is going to be conserved. All these are part of the advantages of the Nigeria First Policy.

Also, when you produce more locally, you will have time to develop the local component. As a matter of fact, the local component is the major stimulator of the economy when it comes to vehicle manufacturing . As more local components are produced, more jobs will be created, and the economy will be boosted.

A lot of raw materials are going  to be developed, with a lot of backward integration  that will lead to development of local components that are used to manufacture goods.

What is the update on the automotive policy? 
The auto policy is in place and being implemented, but we are working on legislating it by turning it into an act of parliament to boost investors’ confidence in the sector.

It is passing through the final touches at the appropriate ministries before it will be forwarded to the National Assembly, where it will be passed, before Mr. President signs it into law.

What are the legacies you would like to leave behind?
My legacy is to ensure that we develop local components and by doing so, we are going to increase the percentage of local content.

Secondly, I want to see a dynamic huge growth of the automotive sector contributing to the national economy. At the end of my tenure, I want to see an auto sector that will employ far more than what we are doing now. So, I have the desire to develop an auto sector that is going to generate additional thousand jobs. It is part of what we are doing now.

The legacy I want to leave behind is to put in place a vibrant indigenous auto industry producing unique, typical Nigerian vehicles of international standard that will be affordable to Nigerians. Again, it is not by the number of assemblers that we have, it is by the number of products that we produce. There has to be a significant increase in the numbers of vehicles manufactured in Nigeria.

Again, my ambition is to ensure that the vehicles that are coming into Nigeria, even those that are pre-owned, meet minimum safety standards. And I have started working  on these so that at the end of my tenure, a well regulated  automotive  sector would have been established.

I am also desirous of a system where we can develop a lot of skills within the auto sector in Nigeria before I leave office. We are going to develop a lot of people through training, ensuring that the skill gap we have in Nigeria is bridged during my time.

How will you describe the future of mobility in Nigeria?
By God’s Grace, my appointment as the Head of the National Automotive Design and Development Council (NADDC) will open new opportunities in the future of mobility in Nigeria.

This is because the NADDC, a Federal Government agency, has shown a commitment to embracing and developing modern technology for Compressed Natural Gas (CNG)-powered vehicles and electric vehicles (EVs) as sustainable alternatives to traditional Internal Combustion Engines (ICE) vehicles.

The future of mobility in Nigeria holds the promise of CNG and EVs for sustainable, environmentally-friendly transportation; and my leadership will undoubtedly play a significant role in this transformative journey.

I have articulated the remarkable significance of the Federal Government’s consideration of CNG and EVs and I believe that green energy would play a vital role in shaping Nigeria’s future of mobility. I am delighted that Jet Motors was at the forefront of this transformative movement.

This new infrastructure would encourage mass transporters to adopt CNG-powered vehicles and EVs for their businesses, providing cost savings of up to 70 per cent. It would thus reduce the dependence on costly petrol, which has been a major blow to our country’s economy and minimize maintenance expenses.

Moreover, EVs require minimal servicing, eliminating the need for monthly oil changes and the challenges of dealing with carburetors, plugs, and other components. They also mitigate the risk of purchasing counterfeit parts and alleviate the complexities associated with repairing fossil-powered vehicles.

I have plans to put all these together and there is an opportunity for these visionary ideas and plans to be put into action. The optimisation of opportunities arising from market changes and government direction is now within reach.

The goal of building local capacity for vehicle production demands dedication and continuous effort. My leadership is ready to ensure these.

How will you ensure that the percentage of local content increases by using more of the components produced in Nigeria?
What we need to do, which we are already doing, is to ensure that some components are produced in Nigeria and as I mentioned earlier, we have identified those component parts that we can produce in Nigeria. We are encouraging more investors  to  produce some of these components in Nigeria not only for new vehicles but also for after sales component parts, which is the major ingredient in vehicle production.

And then we will ensure that we support the production of those components that we can produce in Nigeria. For example, we will support the auto plastic, leather makers and others
with auto friendly policies.

What I am saying in summary is that no country can boast of manufacturing all the components of a vehicle within the country. What is obtainable is to manufacture the components you have comparative advantage on and import the few you cannot produce.

For instance, it is not all the countries that have all the natural resources needed for producing all the components locally. So, what the council is doing now is to support local manufacturers of components with friendly government policies that will create an enabling environment to increase automotive local contents production in Nigeria.

This administration is pushing the CNG project; what’s your view on that?
It is a policy that has comparative advantages. CNG as an alternative means of energy is cheaper and cleaner when compared to PMS. And because it is cheaper it is an opportunity to reduce transport fare and because it is cleaner, it is better for our environment and society. Again, if we have this in abundance, it will boost the economy.

The council has established some mechatronics training centres to train auto technicians and conversion centres from PMS to CNG-powered vehicles, can you shed more light on this?
The training centres cover mechatronics, heavy duty, CNG conversion, among others. We have these centres and we have equipped about 16 nationwide. We will equip the remaining because the facilities are difficult for some technicians to acquire; hence, these facilities will be made available for people that want to do training. It will be used by us and other agencies. We have just signed an MOU with ITF so that ITF can use those facilities to train technicians, especially automotive training.

What is the core mission and goal of the NADDC?
Our core mission is to revitalise and foster the robust growth of the Nigerian automotive sector. This endeavour is critical, considering the profound multiplier effects it has on our economy, from generating employment and building local capacity to enhancing infrastructure and conserving foreign reserves.

We achieve this through the careful initiation, recommendation, supervision, and regulation of policies and programmes aimed at promoting locally manufactured vehicles and components.

Our ultimate goal at NADDC is to cultivate an enabling environment where Nigerian-made vehicles of international standards can be produced at competitive prices, utilising our abundant local human and material resources.

Central to our core mandate is the imperative to regulate motor dealers. This regulation is not merely a formality; it is crucial for several fundamental reasons. It ensures the safety and environmental soundness of vehicles circulating within our market, actively combats the illicit trade of smuggled, accidental, flooded, and aged vehicles, and crucially addresses the detrimental impact that unregulated used vehicles can have on human lives, national economy, and the environment.

We are committed to safeguarding public safety, protecting our environment, and nurturing a sustainable and responsible automotive market for all.

Furthermore, Executive Order 005 stands as a testament to our commitment, mandating government patronage of locally assembled automobiles by all Ministries, Departments, Agencies (MDAs). This patronage is not just a policy; it is a vital pillar for the success and sustainable growth of our local automotive industry. To ensure compliance and robust support for this industry, it is essential that motor dealers register and operate within a well-defined and regulated framework. Moreover, to truly benefit from this government patronage, it is imperative for motor dealers to prioritise sourcing vehicles exclusively from local manufacturers and assemblers.

As we  look to the future, exploring new market segments such as CNG-powered vehicles, electric vehicles, and commercial fleets becomes paramount. Simultaneously, we must mitigate the risk posed by non-roadworthy vehicles in the market. The registration of motor dealers is a necessary step in this evolution, as it creates the foundational enabling environment for our automotive sector to not only survive, but to truly thrive and innovate.

The NADDC remains steadfast in its commitment to steering this transformative journey. Our unwavering goal is to drive sustainable growth and comprehensive development within Nigeria’s automotive sector.