technology is bringing a new dawn - d8automotive.com · develop local production of utilitarian,...

The new Nigeria

technology is bringing a new dawn

We must never underestimate the significance of human imagination

Africa

A continent of wonder, awe and adventure

AfricaA continent of rich culture and heritage

We must never underestimate the significance of human imagination.

Extreme transportationChallenges.

• Limited Local capacity far below market needs.• Market full of sub-standard dilapidated vehicles.• Lack of affordable standard spare parts.• Expensive vehicles.• Lack of vehicle purchase scheme.• Environmentally unfriendly vehicles.• Vehicles incompatible with environment, i.e.poor road conditions or even absent road Infrastructure.• Lack of standard service and maintenance workshops.• Skills gap in automotive technology.• Lack of automotive innovation and development

focus in higher education.

Objective. Destination.Modern, safe, efficient automotive solutions for all family

Athletic/research

Utility/commercial

Health/Social services

The new Nigeria• A new committed leadership, dedicated to progress.• A leadership committed to positively touching the lives of every Nigerian. • A leadership dedicated to ushering in a new Nigeria where most of the

problems we now face would by then have been relegated to the pages of history forever.

• Nigeria has come out of recession.• Government commitment to diversification away from oil Into agriculture and industry.


The new Nigeria

• A population of over 180 million.• Potential market of over 1 million vehicles.• Over 50% percent of the population is under 20 years old.• An evolutionary psyche, especially with this new demographic.• The opportunity to leapfrog and create technologically

advanced Societies and economic ecosystems.


The new NigeriaNAIDP

The Federal Government of Nigeria (FGN) approved a New Automotive Industry Development Plan (NAIDP) totransform the Nigerian automotive industry and attract investment into the sector. The Auto Sector is a keycomponent of the Nigerian Industrial Revolution Plan (NIRP). The NIRP is a 5 year programme developed by theFederal Ministry of Industry, Trade, and Investments to diversify Nigeria’s economy and revenues through industryand to increase manufacturing’s contribution to GDP from 4% today, to 6% by 2015, and finally above 10% by2017. Within the NIRP, the automotive sector has been identified as a strategic industry group due to its largedomestic market, labour intensive characteristics, strong industrial linkages, existing installed base, and exportpotential into ECOWAS.


NATIONAL AUTOMOTIVE INDUSTRY DEVELOPMENT PLAN (NAIDP) 2013-2023.

1. Provide all Establish a dynamic fiscal policy to attract and sustain OEM investment;2. Assemble / manufacture 1 million automobiles for transport mining and agriculture by

revitalizing existing industry and attracting FDI;3. Renew Nigeria Vehicle stock and reverse pressure on Balance of payment through

gradual increase in local content;4. Establish automotive manufacturing infrastructure;5. Increase industry employment and establish a self sustaining manpower development

structure;

NATIONAL AUTOMOTIVE INDUSTRY DEVELOPMENT PLAN (NAIDP) 2013-2023.

• Provide all necessary support to the automotive OEMs in setting up manufacturing in Nigeria.

• Make the Automotive Policy into Law and ensure continuity.• Stop the heavy inflow of used and substandard vehicles, 75% levy on imports.• Support local production. 5% to 10% on SKD and 0% on CKD.• Support local component manufacturing.• Government decree on mandatory patronage of locally produced vehicles.

1. Reposition the industry to meet the estimated demand of 450,000 vehicles (2016), 90,000 of which were brand new, 360,000 used;

2. Attract Original Equipment manufacturers (OEM) to bring the FDI and know-how required to raise capacity utilization from paltry 2.6% of the installed capacity of 408,000 to achieve up to 20% capacity utilization rate by 2020.

3. Advocate the passage of the NAIDP Bill by the National Assembly. Ban importation of sub-standard vehicles.

4. Advocate the launch of a Auto Credit Purchase Scheme for made in Nigeria vehicles.5. Develop local standard component production. Ban importation of sub-standard components.6. Develop local technical capacity.7. Reorient the Nigerian automotive industry towards Electric Vehicles and share in the 100 billion Euro

revenue opportunity. Global OEMs are phasing out vehicles powered by the Internal Combustion Engine.8. Develop local production of Electrified Vehicles and provision of charging infrastructure.9. Launch the NADDC Auto Development Fund.

NADDC OBJECTIVES

10. Develop Homologation test centres.11. Develop Automotive Industrial Parks.12. Develop standard PPP Mechanics villages.13. Develop local production of cost-effective agricultural tractors and equipment.14. Develop local production of utilitarian, cost-effective transportation solutions for health, agriculture, and general harsh terrain logistics.15. Develop dedicated Automotive Innovation and Development Institute.16. Promote design and Innovative talent through competitions.

NADDC OBJECTIVES

Report of Nigeria Automotive Industry Capacity by Brand for 2016. Report of Nigeria Automotive Industry Capacity by Brand for 2016

Company Brands/Technical Partners Installed

Capacity

Actual Production

KD

Actual

Production

%

Kewalram Nigeria

Ltd

Foton & JMC 2,400 24 0.24

Peace Mass Transit

Ltd

King Long United Auto

Company Lt

1,000 200 2

Koncept Auto centre

Ltd

Chevrolet Brands, Isuzu

Trucks

3,600 0 0

Coscharis Motor Ltd Jiungsu Joylong Automobile

Ltd And Morris Garage

18,000 428 4.28

Innoson Vehicle

Manufacturing

Company Ltd

Innoson Brands Pick-Ups,

Buses, SUVs Cars and Three

Wheel Motor Vehicles

10,000 527 5.27

SinoTruck

International Nigeria

FZE

SinoTruck 2000 24 0.24

Hyundai Motors

Nigeria Ltd

Hyundai Motor Company 15,000 1193 11.93

Zahav Automobile

Company Nigeria Ltd

Jinbei, Changan, Foton, BAIC 10,000 48 0.48

Coscharis Motor

Assembly Limited

Ford Motors 3,000 428 4.28

Iron Products

Industries Ltd

Tata, Foton, Actron

Trucks

400 Yet to be

Reconciled

Yet to be

Reconcile

d

VON

Automobile Nig

Ltd

Volkswagen AG

Vehicles

2,000 12 0.12

Anambra Motor

Manufacturing

Company Ltd

DongFeng,Yutong,

Scania, Marcopolo

Commercial Vehicles

and Trucks

8,500 0 0

Lanre Shittu

Motors Nigeria

Ltd

JAC Trucks 6000 18 0.18

Toyota Nigeria

Ltd

Toyota Motor

Corporation

20,000 0 0

De-Damak

Nigeria Ltd

T.King & Beijing

Automobile Works

400 8 0.08

CIG Motors

Company Ltd

GAC 1,500 100 1

Boulos

Enterprises Ltd

Suzuki Motor

Corporation

100 0 0

Nigeria

SinoTruck Ltd

Sino Truck 100 Yet to be

Reconciled

Yet to be

Reconcile

d

Honda Automobile

Western Africa Ltd

Honda Accord Passenger

Cars

1,000 228 2.28

Aston Motors Ltd Trucks/Aston 1,500 150 1.5

PAN Nigeria Ltd Peugeot and Changan

Brand

60,000 2362 23.62

Leyland Motor

Company Ltd

Leyland Brand of Buses And

Trucks

2,000 210 2.1

Proforce Ltd Armoured SUV, Patrol

Boats, Cash Transit Vans

APC, Armoured Range

Militarized Toyota Hilux

480 Yet to be

Reconciled

Yet to be

Reconciled

National Trucks

Manufacturers Ltd

CNHTC(Sinotruck) T-King,

Foton, Great Wall Motors,

Dong Feng, Kinglong

12,000 100 1

Dana Motors Ltd KIA Cars, SUVs & Trucks 27,000 639 6.39

SCOA Nigeria Plc MAN Truck & Buses 2,000 13 0.13

Stallion NMN Ltd Nissan South Africa 15,000 569 5.69

Stallion Motors Ltd Ashok Leyland 2,000 135 1.35

Dangote Sinotruck

West Africa Ltd

Sinotruck (Hong Kong) Ltd 6,000 0 0

Steyr Nigeria Ltd Steyr 5,000 150 1.5

Perfection Motor

Ltd

FAW Trucks 1,000 80 0.8

Transit Support

Services Ltd

Changsha Foton Vehicle,

Shacman

1,000 45 0.45

Lafbart Innovation

and Consulting Ltd

CFAO Motors Nigeria,

Proforce Motors India

500 300 3

Tranguinea

Ltd/Leventis Motors

Foton & Eichel Trucks &

Buses

5,000 213 2.13

Richbon Nig Ltd Sinotrucks & Xiamen

KingLong Buses

31,500 115 1.15

Eastern Vehicle

Assembling Ltd

BIGST SUV, Pick-

Up(Nigerian Brands)

6,000 0 0

Nigerian-China

Manufacturing

Company Ltd

Hentong Buses, SUV&

Passenger Cars

7,200 0 0

Tilad Nigeria Ltd Mini Buses/

tShinnery

1,200 0 0

R.T.Briscoe Nigeria

Ltd

BYD Buses &Trucks 45,000 0 0

Globe Motors

Nigeria Ltd

Mini Bus, Pick-UP, SUV&

Passengers Cars/ Higer

6,000 0 0

Basco Nigeria Ltd JAC Trucks 240 0 0

CFAO Motors

Nigeria Ltd

Mitsubishi Fuso Trucks &

Buses

1,000 0 0

Dana Car & Services

Ltd

Cars, SUVs, Mini Buses of

Renault

900 0 0

Masters Energy

Industries Limited

JMET Trucks SUVs Cars,

Buses

30000 0 0

INNOSON Vehicle Manufacturing• First Indigenous Automotive Vehicle

Manufacturer.

• Production Capacity: 527

Ford’s 5bn Naira Lagos Assembly Plant, Coscharis

• Producing the Ford Ranger, a multi-purpose mid-size- truck that is developed for both heavy lifting and leisure.

• Production Capacity: 428

PeugeotPeugeot is a strong player in the nation’sAutomotive ecosystem.

Production Capacity: 2,362

Oldang Electric Tricycles.

Mr. Olubunmi Oluwadare,Oldang International Limited CEO

“This would create an easy transportation, system, affordable transport fare, job opportunities, human capital development and position Nigeria as a forward-thinking country and a commercial hub for other African countries,”

Plan implementation Monitoring and Evaluation (M&E)report summary (1) Challenges arising from customs

administration and poor infrastructure limits on logistics ;

(2) Very Limited access to foreign exchange by the sector,

(3) Unrestrained import of Pre-owned automobiles and smuggling including grey import;

(4) Limited access to market;

(5) Investment confidence

• Observed gap between installed capacity and operating capacity was found to have been due largely to the following:

Installed capacity: 408,000, Actual production: 8,473, Issued Licenses: 53, Staff strength: 4,782

Status of inbuilt Programs for implementation

Strategic action:

• Provision of Chapter 89 in the NAIDP bill for ease of administration. Ministry and House support needed to pass it into law.

• Planned workshops for NADDC, FMITI, NAMA, FMF, and NCS schedule officers on procedures, definitions and policy environment. Earlier workshops were limited to Heads of departments. No trickle down impact.

• I. Customs Administration and Logistics.

• Bureaucratic delays in documentation and operations.

All the stakeholders that met with the delegation were very positive about the prospects of the future Nigerian Automotive

sector, provided that certain obstacles can be overcome. These are mainly:-

1. Policy security and stability.

1. Legislative process to be completed and signed off by Legislature.

2. Indication from the delegation was that this should be concluded this year.

2. Establishing a viable and sustainable vehicle financing scheme to grow new vehicle sales volume.

1. Discussions with Wesbank seems to have reached an impasse and urgent follow-up discussions need to take place

between Nigerian authorities and Wesbank.

NADDC Delegation to South Africa, engaged AAAM. Met with:

BMWNissanToyota

VolkswagenFordNAACAMBAW

INVESTORS CONFIDENCE

3. Positive steps towards the reduction of used car imports through border controls and enforcing regulations.

a. The 1st step to only allow vehicle imports through the parts and no longer through landside border post has

been implemented since the beginning of 2017.

b. NADDC to ensure full integration of its portal with that of Nigerian Customs to curtail smuggling activities and

to provide a reliable source of industry data.

c. Once a viable vehicle finance scheme has been implemented, the authorities will be able to take bolder steps

to enforce the policy and to take further steps towards curbing used car imports.

d. It is also proposed that imported used vehicles should be subject to the same technical regulation and

homologation as new vehicles. NADDC to expedite action to ensure that all pre-owned vehicles imported,

should provide certification from the country of origin that the vehicle is roadworthy.

Market Development

Auto Finance Scheme

NADDC signed and MOU with RAND Bank of South Africa.

• Corporate Affairs Commission (CAC) has reserved the Name: MOTOFinance Nigeria;

• Rand bank has submitted application to CBN for the Finance company operating License. A license fee of N100,000,000 has been paid by Rand bank. The bank has equally completed all Financial and commercial models and ready with the go- to-Market Plan;

• Initial contribution by NADDC is N7.5 Billion as equity. Rand bank will match this with a loan contribution;

• Additional intervention fund of about N100billion low interest loan is invited from government.

• NADDC has started discussions with BOI to see how the bank can support the Vehicle Finance Scheme.

1. Made in Nigeria Automobile Credit Purchase scheme;

2. Automotive repository portal to take effective control of industry, plan, monitor and inform investment

decision

Emissions Testing Lab, Lagos.Contractor: Ama Yaro Associates Limited

Civil Work: 85% CompletionEquipment: 90% Completion. NADDC has taken delivery, awaiting electromechanical services. OEM

Components Testing, Enugu.Contractor: Shelter Resources Limited

Civil Work: 85% CompletionEquipment: Manufacturing of equipment and tools is on-going.

Materials Testing Lab, Zaria.Contractor: Building Anatomy Limited

Civil Work: Handed over and is in defect liability period.Equipment: Equipment delivery is on-going at the laboratory.

LOCAL COMPONENT PRODUCTION

• Setting up 3 Advanced Automotive Industrial Parks.Nnewi – South East - Automotive component hub.Kaduna – North West - Peugeot plant.Oshogbo – South West – Steel rolling mill. Mechatronics Institute

KADUNA OSHOGBONNEWI

Nnewi Automotive Industrial Park, 80 hectares.

1. Working committee has been set up, led by NADDC.

2. NADDC delegation visit to Anambra State and discussions with His Excellency, Gov. Willie Obiano.

3. Anambra has provided the 80 hectares as equity contribution.

4. Anambra to provide connector roads,

5. Federal Government to provide power. Discussions between FMITI and FMPWH.

6. UNIDO is supporting with preliminary studies.

7. Potential contractor/financiers Power China has been engaged in discussions.

• Potential contractor/financiers Power China has been engaged in discussions.

• IRELAND INDUSTRY DEVELOPMENT AGENCY, and JICA are also possible developmental partners.

Site ANALYSIS

Nigeria8.0000° N, 10.0000° Ecomprising 36 statesArea: 923,768 km²

Africa7.1881° N, 21.0936° E30,221,532 km²

Anambra State6°20′N 7°00′EArea• Total 4,844 km2 (1,870 sq

mi)

SUN PATH

S-W Trade windSea breezes and cold rainBlows from Atlantic oceanEnsures maximum air exchangeLarge openings would be provided toensure maximum air exchange

CLIMATE: humid climate with averagetemperature of 300°C (870°F).

N-E Trade windHarmattanComes from the Sahara desertBrings dusty and dry windWind breakers introduced on the wall

SUN SET SUN RISE

GEOGRAPHY: vegetation ispredominantly grassland,with scattered forests andwoodland areas as well astropical rain forest.

NNewi STATE

AS SEEN ON GOOGLE EARTH

Site ANALYSIS


Africa7.1881° N, 21.0936° E30,221,532 km²

Kaduna State7.0000° N, 3.5833° E16,762 km²

CLIMATE: The climate is tropical in Kaduna.When compared with winter, the summershave much more rainfall. The climate here isclassified as Aw by the Köppen-Geigersystem. The average annual temperature inKaduna is 25.2 °C. About 1211 mm ofprecipitation falls annually

vegetation is thick and grasses about 3.6meters tall with big trees, which growshorter as one approaches the SudanSavannah.

SUN PATH



SUN SET SUN RISE

KADUNA STATE


1. branches off sabon birnin road

2. A relatively flat large expanse of land

approximately 200hectares with untamed

trees, hedges, and shrubs.

Site ANALYSIS


Africa7.1881° N, 21.0936° E30,221,532 km²

Osun State7°30′N 4°30′E9,251 km2

SUN PATH


CLIMATE: The climate of Osun State followsa tropical pattern with the rainy seasonstarting about March and ending inNovember, followed by the dry season. Themean annual rainfall varies from 128cm inthe southern parts of the State to 105cm inthe northern areas

1. branches off abere ede road road at a major

junction (easily assessable from there).

2. A relatively flat large expanse of land

approximately 200hectares with untamed

trees, hedges, and shrubs.

• Site information



SUN SET SUN RISE

GEOGRAPHY: Thegeographical landscape ofthe State comprisesextensive fertile soilsuitable for agriculture,and Savannah land in thenorth western part of theState, suitable for cattlerearing

OSHOGBO STATE

3 Advanced Automotive Industrial Parks

Advanced hubs of automotive component manufacturing including:

• ELECTRIC POWERTRAINS• EMBEDDED ICT SYSTEMS• ENGINE MANAGEMENT SYSTEMS• CONNECTIVITY APPS AND SYSYTEMS• NAVIGATION SYSYTEMS

Skills Development1. Skills Gap Identification.

2. Curriculum and Instructional Manual (Modularized Version)

3. Provision of mechatronic Equipment as Grant Aid to Pilot Institutions.

I. Federal Science and Technical Collage, Orozo.

II. Lagos State Polytechnic.

III. Federal Polytechnic Kaduna.

IV. National Metallurgical Training Institute, Onitsha.

V. Rivers Polytechnic. Bori.

VI. Federal Polytechnic of Technical Education, Gombe.

Skills Development1. NADDC Train the Trainer Program.

2. Collaborative Training between NADDC? Techno World/SMEDAN

3. Collaborative Training Project with SIMBA Group.

4. Tyre and Wheel Training.

5. Heavy Duty Trucks Maintenance Training.

6. Development of National Occupational Standards.

7. Training of Assessors and Verifiers.

8. Establishment of Sector Skills Council for the Automotive Industry.

9. M POWER, Presidency.

10. B.Eng. Degree in Nigerian Universities.

Global Electric Vehicle Revolution

"Analysts at UBS say the shift from combustion toward

electric cars is a 100 billion euros ($107 billion) revenue

opportunity for suppliers."

Edward Taylor, Joseph White, The Fiscal Times,

Apr 19 2017

"Why is China pushing so hard for EVs? Apparently motivated by a need to reduce its heavy industry-driven

pollution............... At the same time, the aim is to take advantage of a once-in- 100-year powertrain shift in order to

leapfrog established car makers. By encouraging its home car makers, such as SAIC, Geely and Trumpchi, to focus on

electric powertrain technology, China sees an opportunity to build a thriving domestic car industry with the ability to sell

credible Chinese made cars internationally. It is a plan that was born more than a decade ago but which is only now

coming to fruition."

Jim Holder, AUTOCAR MAGAZINE,

5 July 2017

https://www.autocar.co.uk/users/jim-holder

Nigeria must develop an Electrified Vehicles Policy and Program.

• Electric Vehicle development, production and usage.

• Development of viable Charging Infrastructure.

• Local Skills Development with schools.• Controlled Environment Pilot Program with

established global stakeholders such as Siemens. Airports, Trade Free zones, Universities, Industrial

Parks, Estates

• Electric Bus Corridor, Lagos State.

• VEHICLE ELECTRIFICATION

NADDC IS STRATEGIZING THE DEVELOPMENT OF AN ELECTRIC VEHICLE POLICY.• We have begun engagement of relevant global automotive OEMs technology companies who have

focus and direction in electric vehicle development.

ENABLERS• The Nigerian Federal Government has now allowed the establishment of private sector driven

modular power generation.• Nigeria is blessed with high solar insolation.• Nigerian Federal Government and the NADDC are committed to supporting automotive sector

relevant sustainable energy solutions developers.

The new Nigeria

• VEHICLE ELECTRIFICATION

1. No Global Support for petrol vehicles. Out in the cold.

2. Now gas flares. Possible sanctions for environmental pollution.

The new Nigeria

The new NigeriaAutomotive Sector Advanced Investment Opportunities

• Electric Vehicle Production• Charging Stations• Solar Energy Generation• Renewable Energy Solutions• Electric Vehicle Logistics• Electric Vehicle Technology Training• Ride-Share Service Providers• Vehicle Connectivity Developers and

Providers

Support From Ministry on:

• On passing Automotive Policy into law.• Banning importation of sub-standard

components.• BOI support on Auto Finance Scheme.• Liaising with Federal Ministry of Finance to

resolve impasse.• Liaising with Nigeria Customs.• Preferential FOREX allocation to stakeholders.• NIPC support on enabling FDI.• SON support on standards enforcement.• Approval for completion of Test Centres.• Approval on Automotive Supplier Parks.• Liaising with FMPWH for dedicated power

supply.

technology is bringing a new dawn - d8automotive.com · develop local production of utilitarian,...

Documents