New Investment, Automotive Policies Approved by FG 2023

The federal government has approved the first-ever Nigeria Investment Policy (NInP) for implementation.

In addition, the government adopted a new National Automotive Industry Development Plan (NADIP) for the years 2023 through 2033.

Mr. Adeniyi Adebayo, Minister of Industry, Trade, and Investment, stated that both policies were authorized at a recent meeting of the Federal Executive Council (FEC) on Wednesday, which was presided over by Vice President Yemi Osinbajo.

The administration said the investment strategy would reassure investors and boost economic activity.

The minister explained that trade and industry titans deliberated on structuring the investment sector over time and agreed that there was a “need for an investment policy that instills confidence and encourages people who wish to improve the country through genuine investments to bring their funds into the country and invest.”

He stated, “Over the years, only the investment-related regulations of Ministries, Departments, and Agencies (MDAs) have been operational.”

Adebayo noted, however, that the “harmonized policy is the result of putting together the concept for the country to develop rapidly through industrialization and then snowball into a sustainable investment climate that attracts the type of investment we seek.”

The investment policy focuses primarily on investment promotion, investment facilitation, and sustainable development, as well as promoting responsible investor conduct for sustainable development by influencing investor conduct in accordance with globally acceptable standards relating to the environment, human rights, health, labour, safety, corporate social responsibility (CSR), and anti-corruption.

In a statement issued by the ministry’s Deputy Director of Press and Public Relations, Mrs. Oluwakemi Ogunmakinwa, the minister commented on the new automotive policy, stating that it would facilitate the country’s transition from combustion engines to electric solar-powered engines.

According to him, this is an enhancement over the 2013 automotive industry development plan that was in effect.

The National Automotive Design and Development Council (NADDC) devised the new strategy to aggressively build on the automotive industry’s past successes in Nigeria.

Strategically, the new NAIDP would provide the fiscal and non-fiscal incentives that automotive industry manufacturers/producers, investors, developers, and all relevant stakeholders require.

The policy aimed to enable an exponential increase in the local production of vehicles, reach 40 percent local content, achieve 30 percent locally produced electric vehicles, create one million jobs, require government and companies with government contracts to purchase locally produced vehicles, and boost research, development, and technology transfer.

Adebayo also suggested that the country would shortly begin implementing a national trade policy for the years 2023 to 2027.

He explained that this was essentially a review of the previous trade policy and that the goal was to implement a policy that would enhance Nigeria’s trade within the World Trade Organization (WTO).

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