Nigeria’s automotive industry records $1 billion investment in 2022 -FG
The Nigerian Government revealed that Nigeria’s vehicle production industry recorded over $1 billion worth of investments in 2022.
This was disclosed by the Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo at the 20th edition of President Muhammadu Buhari’s administration scorecard series on Tuesday in Abuja.
He also added that Nigeria has successfully revised its model Bilateral Investment Treaty (BIT) to include a specific provision for investment facilitation.
Automotive investments: Adebayo stated that one billion dollars were invested in Nigeria’s automotive industry, he also said the review of the National Automotive Industry Development Plan (NAIDP) is nearly completed, and he said that the plan was going through a validation process.
- “Over one billion dollars in investment has been recorded in the automotive sector and we are ready to move on to the next phase for the automotive industry.”
The Minister said the trade ministry is committed to enabling the business environment to attract and retain investments, citing they alongside the Nigerian Investment Promotion Council (NIPC) are committed to attracting and protecting investments that genuinely benefit Nigeria and its citizens.
Bilateral Investment Treaty: The Minister also added that FG has revised its Bilateral Investment Treaty (BIT) towards attracting investments, he said:
- “Nigeria has successfully revised its model Bilateral Investment Treaty (BIT) to include a specific provision for investment facilitation, which institutionalises the principle of assisting investors in completing their investments.
- “We are proud to offer Nigeria’s first investment policy to the Federal Executive Council (FEC) for approval.
- “This strategic statement, which will outline our priorities, aims, commitments, and expectations, is a turning point for the Federal Ministry of Industry, Trade, and Investment and Nigeria as an investment destination.”
He added Nigeria now boasts Investment Promotion and Protection Agreements (IPPAs) with Singapore, Morocco, and Saudi Arabia to attract and retain investments. President Buhari ratified both accords on September 16, 2022.
What you should know: Recall Nairametrics reported in 2021 that The Minister of Industry, Trade and Investment, Adeniyi Adebayo disclosed that the new Automotive Industry Bill will help position Nigeria in its rightful position, as the manufacturing hub of Africa.
According to him, the whole idea of the New Automotive Policy will be centred on creating an enabling environment for key players in the industry, as the policy seeks to gain the confidence of investors in the industry, especially the Original Equipment Manufacturers (OEM), with the view to have them come in to set up manufacturing plants in Nigeria.
He added Nigeria will be able to leverage on the buffers coming from the recently ratified African Continental Free Trade Area (AfCFTA), an agreement that has a total market of 1.2 billion people, while 200 million of the 1.2 billion people are here in Nigeria.