Hyacinth Chinweuba
Nigeria has signed a Memorandum of Understanding (MoU) with the Volkswagen Group for the development of the automotive industry in the country.
Under this, Volkswagen Group is expected to implement its plan which will lead to assembling of vehicles in the country.
It will start with assembling of kits with the long-term plan of establishing Nigeria as an automotive hub in West Africa.
The Minister of Industry, Trade and Investment, Dr. Okey Enelamah, weekend signed the MoU on behalf of Nigeria while Volkswagen’s Head of the Sub-Saharan Region, Thomas Schaefer, signed on behalf of his group.
In a statement by the Minister’s Strategy and Communications Adviser, Mr. Bisi Daniels, the MoU involves the establishment of a training academy in conjunction with the German Government, expected to train the initial employees.
Under the MoU, the government on its own is to show commitment to ensure the approval of the Nigerian Automotive Policy.
The Policy is to ensure gradual transition from the importation of used cars to the manufacturing new commercial vehicles.
Government is also to provide a conducive legislative environment that will encourage the manufacturing of vehicles in Nigeria.
Enalemah was quoted saying, “The MoU is a major step in our journey towards the development of a robust automotive industry to achieve its potential contribution to the continuous economic development of the country.
“We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy, and we remain committed to encouraging and partnering relevant stakeholders, especially investors and friends of Nigeria.
”We will meet our commitments and look forward to welcoming other Original Equipment Manufacturers (OEMs) interested in working with us to increase local production, local procurement, and exports”.