The recently inaugurated National Economic Council (NEC) has thrown its support behind the initiative of the National Automotive Design and Development Council (NADDC) to commence the mass production of electric vehicles (EVs) and Compressed Natural Gas (CNG)-powered vehicles in Nigeria. This move is aimed at cushioning the impact of fuel subsidy removal in the country.
During the inaugural NEC meeting presided over by Vice President Kashim Shettima on Thursday in Abuja, Jelani Aliyu, the Director-General of NADDC, highlighted that modalities are already in place, particularly with the commencement of electric vehicle assembly in the country. He emphasized the necessity for appropriate legislation to enable the mass production of these vehicles.
Speaking to State House correspondents at the conclusion of the meeting, Governor Alex Otti of Abia State stated that some of the decisions made during the session included the provision of legislative support to automotive companies that are contributing significantly to the industry in Nigeria.
According to Governor Otti, “The National Economic Council meeting brainstormed on the possibility of local manufacturing companies mass-producing vehicles using Compressed Natural Gas, CNG, as their energy source. A presentation was made by the National Automotive Design and Development Council on the great things happening in the automotive industry. So far, six states in the country, including Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna, and Kano, have benefited from domestic vehicle production or assembly by Nigerian companies.
“These companies include Innoson, Mikano, Dangote Peugeot, PAN, Stallion/Hyundai, Honda, Elizade/Toyota, Coscharis/Ford, Kojo Motors, Jet Systems Motors. Currently, this action has created about 50,000 jobs through vehicle assembly or production in Nigeria.
“An exceptional achievement is that some of these companies have ventured into the manufacturing or assembly of electric vehicles and vehicles powered by CNG – Compressed Natural Gas. This will reduce the pressure on the price of petroleum products, particularly Premium Motor Spirit (PMS). The more we use electric vehicles and CNG-powered vehicles, the greater the impact.”
He further highlighted the commitment made by the former president that Nigeria would join countries eliminating fossil fuel-powered vehicles and transitioning to electric vehicles by 2060 to achieve net-zero emissions. In order to achieve this, there is a need to increase the production of electric and CNG-powered vehicles in the country.
“It is estimated that if we provide legislative support to these companies, about a million jobs will be created in the industry, building upon the existing 50,000 jobs. It was also suggested that the necessary funding be made available to most of these vehicle manufacturers and assemblers to reduce reliance on PMS and other fossil fuel-powered vehicles,” Governor Otti added.
