Nigeria signs MoU with Volkswagen Group to boost automotive industry

The Nigeria automotive industry has got a boost with the signing of a Memorandum of Understanding (MoU) with the Volkswagen Group to develop joint vision for an automotive hub in the country.

The Minister of Industry, Trade and Investment, Mr Okechukwu Enelamah made this known in a statement in Abuja on Monday.

He signed the MoU on behalf of Nigeria while the Head of the Sub-Saharan Region of Volkswagen, Thomas Schaefer, signed on behalf of Group.

According to him, Volkswagen undertakes to implement a phased approach in relation to the assemblage of vehicles.

He said this would start from assemblage of kits with the long-term view of establishing Nigeria as an automotive hub on the West Coast of Africa.

“This will include establishing a training academy in conjunction with the German Government which will train the initial employees.

“The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country, subject to commercial viability,’’ Enelamah said.

Daniels said that the government promised to finalise the approval of the Nigerian Automotive Policy under consideration.

He said the finalisation would include the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

Daniels said the government was also committed to providing a conducive legislative environment that would encourage the manufacturing of motor vehicles in Nigeria.

“The MoU is a major step in our walk toward the development of a robust automotive industry to contribute 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.

“We remain committed to encouraging and partnering with 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. This is to increase local production, local procurement, and exports,’’ the Minister said.

He added that the national automotive policy had continued to attract investment from within and outside the country.

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