The Federal government has approved a new National Automotive Industry Development Plan (NADIP) that will span through 2023-2033.
It also approved the implementation of the first ever Nigeria investment policy (NInP).
The national investment policy and the automotive industry development plan was given the necessary approval at the Federal Executive Council presided by Vice President Yemi Osinbajo.
The Minister, Industry, Trade and Investment, Adeniyi Adebayo, in his remarks, said, “What has been operational over the years was just investment related regulations of Ministries, Departments and Agencies (MDAs) acting as a guide. This harmonised policy is the result of putting this concept together for the country to develop rapidly through industrialisation, and then snowball into a sustainable investment climate to attract the kind of investment we desire.
The primary focus of the investment policy is on investment promotion, investment facilitation and sustainable development and it would promote responsible investor conduct for sustainable development by influencing investor behaviour in compliance with globally acceptable standards relating to the environment, human rights, health, labour, safety, corporate social responsibility (CSR) and anti- corruption.
“Regarding the 2023-2033 automotive development plan, it will help the country migrate seamlessly from combustible engines into electric solar-powered engines.
“This is an improvement on the 2013 automotive industry development plan, which was in place before,” said the Minister.
“The National Automotive Design and Development Council (NADDC) developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry: the new NAIDP would strategically provide outstandingly competitive fiscal and non fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders.”
World bank proposes utilization of natural resource for big fiscal and environmental dividends for African Countries
Africa’s Resource Future, a World Bank report launched last Thursday, a report that finds that on average countries capture only about 40% of the revenue they could potentially collect from natural resources.
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The report stated that full taxation of natural resources is also important to charge the full cost of environmental and social impacts not always fully covered by producers, including petroleum resources. Failing to do so can act as an implicit production subsidy and raise carbon emissions.
It said in a statement published on its website, “Maximizing government revenues in the form of royalties and taxes paid by private natural resource industries, alongside attracting new investment, would offer a double dividend for people and planet by increasing fiscal space and removing implicit production subsidies,” said James Cust, Senior Economist in the World Bank Africa Region and co-editor of the report.
“ The prospect of higher revenues is particularly welcome in countries that find themselves unable to make badly needed development investments because of high borrowing and debt service costs.
“The global transition away from fossil fuels is creating unprecedented demand for a host of minerals and metals such as cobalt, lithium, copper, nickel, and rare earth elements (REEs) that are required to develop green technologies such as wind turbines, solar panels, and batteries. Many of these resources are found in abundance across Africa.
“Minerals, oil, and gas account for a third or more of exports from most countries in Sub-Saharan Africa, but countries have struggled to convert this wealth into sustainable growth in the past.
“Regional dependence on global commodity prices has led to suboptimal management of public resources when prices are high, and economic busts and fiscal crises when prices crash. Overall, resource-rich countries have been less resilient to economic shocks than non-resource rich countries, a reminder of the risks of a “resource curse.” Slower growth among some resource-rich countries has also been associated with lagging progress on poverty reduction.
“Africa’s Resource Future provides policy makers with practical recommendations for turning a “resource curse” into a resource opportunity. Besides capturing the full value of resource rents while continuing to attract private sector investment, governments should prepare for the next boom and bust cycle by investing resource rents into productive capital – by investing in people’s health and education and infrastructure that can support more diverse and resilient economies.”
Amid other recommendations, the report also highlighted opportunities tied to the implementation of the African Continental Free Trade Area agreement that calls for phasing out 90%of tariffs over the next five to 10 years. Promoting regional integration and harmonizing mining taxes and royalties across the region would also help.
“A regional approach to the extractives sector would allow the creation of value chains that add more value and create more jobs for people living in resource-rich countries than extraction alone,” said Albert Zeufack, World Bank Country Director for Angola, Burundi, Democratic Republic of Congo (DRC) and Sao Tome and Principe, and co-editor of the report.
“In this regard, the African Continental Free Trade Area (AfCFTA) and greater regional trade and economic integration offer an unprecedented opportunity for developing the mine-to-market value chain within the continent, as resource-driven development becomes more feasible with greater access to larger markets and the ability to pool resources, skills, and comparative advantages.”
