NADDC decries 0.4 per cent GDP contribution by automotive sector

The National Automotive Design and Development Council (NADDC) has decried the low contribution of the automotive sector to Nigeria’s economy, which currently stands at 0.4 per cent.

Director General of the Council, Joseph Osanipin while speaking yesterday in Abuja at a public Sector stakeholder engagement on the implementation of the Nigerian Automotive Industry Development Plan (NAIDP 2023-2033) noted that the sector has bigger prospects than what it is currently contributing to the country’s GDP.

According to him “The automotive sector only creates about 0.04 per cent to Zgdp and employment to just 4,000 citizens. But if optimised, it can generate 25 per cent to GDP and a 250,000 employment,”

Speaking on the National Automotive plan, he said “From the second quarter of 2024, the Council will be categorising vehicle manufacturers into the category of completely knocked down (CKD), and Semi Knocked Down (SKD). We are doing this because the NAIDP is giving a roadmap for us to move from SKD to CKD, so SKD vehicle manufacturers from next year will give us a time limit when they will transit to CKD if not we won’t renew their licence.”

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Speaking further, the DG added that one of the principal targets of the NAIDP in the next 10 years is to improve local content development in the sector from 5 per cent to 40 per cent.