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In the vibrant landscape of the automotive industry within our Economic City, the potential for growth and prosperity is undeniable. With a population exceeding 200 million, including a burgeoning middle class of 40 million, the demand for automobiles is substantial. Annually, approximately 600,000 cars are imported, representing an 80% ratio of imported vehicles to domestically produced ones. Currently, there are 35 assembly licenses granted, facilitating the production of 40 renowned brands. Moreover, with 14 million cars already traversing Nigerian roads and an estimated annual market of 1 million new cars, the opportunities for investment are ripe.
Sector Specific Incentives
Capital allowances not restricted, granted in full- 100%. Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years.
Industry Tailored Benefits
100 percent repatriation of profit net of taxes. Investment Promotion and Protection Agreement: IPPA helps to guarantee the safety of investment of the contracting parties
Legislative Framework and Investment Avenues
Amidst this thriving sector, the legislative and regulatory landscape, characterized by the New Automotive Industry Development Plan (NAIDP), paves the way for strategic investment avenues. Entrepreneurs keen on capitalizing on the industry's potential can consider setting up assembly plants to cater to the burgeoning domestic market. Moreover, opportunities abound in capacity building and skilled labor training for repair and servicing, a critical component of sustaining the industry's growth trajectory. Additionally, investment prospects extend to the supply of equipment and essential components to domestic assemblers, as well as the establishment of local component manufacturing plants. Furthermore, venturing into vehicle leasing and fleet outsourcing presents a promising avenue for lucrative returns, underscoring the manifold investment prospects within the automotive sector of our Economic City.
Regulatory Authorities
Federal Ministry of Industry, Trade and Investment (FMITI)
National Automotive Design and Development Council (NADDC)
Nigeria Custom Service (NCS)
Federal Road Safety Corp (FRSC)
Standards Organization of Nigeria (SON)
