Oritsegbubemi Omatseyin
Lagos — In a strategic move to position Nigeria as one of the leading automotive manufacturing nations in the world, the Federal Government through the office of the Minister of State for Industry, Federal Ministry of Industry, Trade and Investment, has signed a memorandum of understanding with South Korea’s Asia Economic Development Committee, AEDC, for establishment of an Electric Vehicle, EV, manufacturing plant and the development of charging infrastructures in Nigeria.
This MoU aligns with the federal government’s National Energy Transition Plan, ETP, and the National Automotive Industry Development Plan, NAIDP, policies of the government both aimed to build an ecosystem for EV infrastructure development, expansion as well as adoption.
The phase I and II of the project will focus on building a complete EV Assembly Plant and establishment of facilities capable of full in-house production respectively. With a production capacity of 300,000 vehicles, the plan is also expected to create about 10,000 jobs.
The gains of this significant initiative cannot be overemphasized, as the expansion of EV adoption will not only help to reduce the approximately $10 billion spent annually on refined fuel imports, but will also act as a catalyst for nationwide economic growth through the explosive expansion of related industries such as auto parts, charging infrastructure, and vehicle maintenance, thus positioning Nigeria as a leading technology- driven nation in Africa.
Building upon the legacy of AEDC, a non-governmental organization that operates independently in close cooperation with leading policy makers and international institutions, the AEDC Chairman, Yoon Suk Hun expressed strong commitment.
“We will devote all of our capabilities to ensuring that Nigeria’s EV industry is built in the most economically viable manner and operated with maximum efficiency, while achieving global competitiveness. Drawing on Korea’s spirit and development experience, our goal is to elevate Nigeria’s automotive industry to world-class standards within 20 to 30 years- an achievement that took advanced economies 150 years and Korea 60 years to accomplish” he stated.
The Minister of State for Industry, FMITI, Senator John Owan Enoh, pledged to work in close coordination with AEDC to ensure the rapid completion of Africa’s first advanced, world- class EV manufacturing plant. He affirmed that the government will extend its full cooperation and mobilize all available resources to ensure that the project becomes a key engine of Nigeria’s industrial development.
Emphasizing the significance of the MoU, the Minister said the project aligns strongly with President Tinubu’s push for “Nigeria First Policy” aimed to boost local production and industrial development, stating that the event represents the commitment of the Federal Government in building a diversified economy that is driven by local production.
The NADDC Director General, Otunba Oluwemimo Joseph Osanipin ably represented by the Head of Policy, Planning and Statistics, Mr. Nura Sidi revealed that the collaboration would focus on Technology Transfer, Investment Promotion, Human Capital Development as well as Research and Design.
The Council, in line with its mandates, had earlier initiated the EV development policy which led to the introduction and adoption of various EV’s, some of which are assembled in the local auto Industry while others are imported into the country.
Through this green energy initiative, Nigeria aims to transform its economy into a high value- added manufacturing base powered by green energy. In accordance with the project plan, efforts will be made to develop the broader EV ecosystem, including the establishment of component manufacturing facilities, acquisition of related technologies, development of charging infrastructure, and battery production.
