Subsidy Removal: NEC supports NADDC on mass production of electric, CNG-powered vehicles in Nigeria

In a significant move to revolutionize Nigeria’s automotive industry, the National Economic Council (NEC) has expressed its full support for the National Automotive Design and Development Council (NADDC) in embarking on the mass production of Electric Vehicles (EVs) and vehicles powered by Compressed Natural Gas (CNG) within the country.

This endorsement came during the inaugural NEC meeting chaired by Vice President Kashim Shettima in Abuja.

Jelani Aliyu, the Director-General of NADDC, while  addressing the gathering, emphasized that this endeavour would help alleviate the impact of fuel subsidy removal, which has been a pressing concern for the country.

He further explained that the necessary frameworks and arrangements, especially regarding electric vehicle assembly, have already been established.

However, Mr. Aliyu underscored the criticality of implementing adequate legislation to enable the smooth and extensive production of these vehicles.

Following the meeting, Abia State Governor Alex Otti spoke to Journalists,  shedding light on some of the key decisions made.

One of the focal points of the discussion was the exploration of the possibility of local manufacturing companies engaging in mass production of vehicles utilizing CNG as their energy source.

Governor Otti shared that the National Automotive Design and Development Council delivered a presentation on the remarkable progress occurring within the automotive industry.

Notably, six states in Nigeria, namely Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna, and Kano, have already witnessed the benefits of domestic vehicle production or assembly by Nigerian companies operating in the country.

Diverse automotive companies such as Innoson, Mikano, Dangote Peugeot, PAN, Stallion/Hyundai, Honda, Elizade/Toyota, Coscharis/Ford, Kojo Motors, and Jet Systems Motors have played a pivotal role in this regard.

The cumulative effect of their efforts has resulted in the creation of approximately 50,000 jobs through vehicle assembly or production in Nigeria.

Furthermore, Governor Otti highlighted the significant achievement of some of these companies venturing into the manufacturing or assembly of electric vehicles and CNG-powered vehicles.

This strategic move will alleviate the pressure on petroleum product prices, particularly Premium Motor Spirit (PMS).

By adopting electric and CNG-powered vehicles on a larger scale, Nigeria can reduce its dependence on traditional fossil fuel-powered vehicles.

Governor Otti emphasized the importance of ramping up the production of electric and CNG vehicles, emphasizing that it aligns with a commitment made by a former president for Nigeria to join countries aiming to eliminate fossil fuel-powered vehicles and transition to electric vehicles by 2060.

This commitment is in line with global efforts towards achieving net-zero emissions, which several countries in Europe, America, and Asia have already endorsed.

The governor stressed that providing legislative support to these companies could potentially create around one million jobs within the industry, an exponential increase compared to the existing 50,000 jobs.

Additionally, it was suggested that the required funding for most vehicle manufacturers and assemblers should be made available to facilitate the transition away from PMS and other fossil fuel-powered vehicles, further reducing dependency on such sources.