The automotive policy is designed with the outlook of reducing foreign exchange demands, encourage manufacturers to use local materials and create more jobs, and help lift the Nigerian economy. The textile policy has been done in the past, now more attention is given to the auto policy. It is mainly set up to promote the local content policy, and help to reduce the amount of money spent by the auto industry to import vehicles, spare parts and tyres yearly.
It is hoped the policy will also help reduce the reliance of Nigeria on the foreign exchange. The onus of the auto policy will be to manufacture designs that are hard to find elsewhere in the world. Auto manufacturers will be interested to get creative and get involved no matter what. And the quality of auto products must match up with international standards.
However, Nigeria will base standards of auto production on European standards. Auto companies are now receiving the help they need to push growth in the industry further. Help comes in the form of funding from the Bank of Industry. At the moment, the Bank has given about 12 billion naira to some 30 auto firms in Nigeria on long-term loans investment, for building plants and manufacturing vehicles.
The primary goal of the automobile policy is to make new vehicles affordable for Nigerians. New vehicles are in no ways comparable to used ones. Nigerians will be able to buy new cars, sell them after 2 or 3 years, then buy new ones. They will still be able to buy used vehicles but these used cars will be from local sources, not foreign.
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