Innoson Seeks FG’s Intervention on EV Component Duties, As MAN Advocates Clean Energy

Indigenous automobile manufacturer, Innoson Vehicle Manufacturing Company Limited (IVM), has called for Federal Government’s intervention over the tariff regime on electric vehicle (EV) components, warning that the current structure can undermine local production and discourage investment in Nigeria’s emerging electric mobility industry.

The company made the call when a delegation of the Manufacturers Association of Nigeria (MAN), Anambra, Enugu and Ebonyi Branch, led by its Chairman, Dr. Adaora Chukwudozie, visited its manufacturing facility as part of activities under MAN’s Industrial Energy Adoption Programme.

The delegation, which included the Managing Director of (MAN) Power Development Company Limited (MPDCL), Oweh Mba-Sam, representatives of Norwegian renewable-energy financier, Empower New Energy, and EPC partner, Paras Energy & Natural Resources Development Limited, toured Innoson’s EV production facility and inspected some of the electric vehicles developed by the company.

Innoson’s management expressed concern that, while concessions have been provided for the importation of finished electric vehicles, components required by local manufacturers continue to attract import duties, thereby increasing production costs and placing domestic manufacturers at a disadvantage.

The company urged the government to review the tariff structure to align Nigeria’s electric-mobility policy with its local-content and industrialisation objectives, arguing that the country should not encourage imported finished EVs at the expense of indigenous manufacturers investing in production capacity.

Reacting to the concern, Dr. Chukwudozie called for greater engagement between the government and local manufacturers, saying Nigeria’s transition to electric mobility should be used to promote local production, create jobs, develop indigenous technology and attract investment.

“If we are encouraging the transition to electric vehicles, then companies that have invested in manufacturing those vehicles locally should also be encouraged. 

“We should not create a situation where it becomes more attractive to import a finished electric vehicle than to import the components required to manufacture that same vehicle in Nigeria,” she said.

The Innoson visit formed part of MAN’s wider implementation drive following the MAN South-east Industrial Energy Solutions & Investment Symposium, where manufacturers were introduced to alternative energy solutions. 

Innoson is exploring solar-energy options to reduce energy costs and strengthen its Environmental, Social and Governance (ESG) and sustainability performance.

In a related development, the delegation also visited Juddy-Bolema Industries Limited, where it participated in a community stakeholders’ engagement on the company’s proposed solar-energy project. 

The engagement was aimed at addressing community and environmental considerations and advancing the project towards implementation.

According to MAN, successful implementation of the Juddy-Bolema project could encourage other manufacturers to adopt renewable energy, while also supporting the company’s wider sustainability objectives and potential participation in the emerging carbon-credit market.

The delegation subsequently visited Cutix Plc, another major South-east manufacturer interested in the Industrial Energy Adoption Programme. Discussions focused on renewable-energy solutions that could improve power reliability, reduce operating costs and strengthen the company’s sustainability objectives.

MPDCL said the programme was designed to provide factory-specific solutions by bringing manufacturers together with renewable-energy financiers, technology providers and engineering partners. 

Chukwudozie said the growing interest showed that Nigerian manufacturers were ready to embrace cleaner energy, but stressed that government policies must create an enabling environment for such investments to succeed.

“We are moving from conversation to implementation. Manufacturers are willing to invest, innovate and embrace sustainability. What we need is an enabling environment that allows those investments to succeed,” Chukwudozie added.

The development, MAN maintained, presents Nigeria with an opportunity to ensure that its transition to a greener economy also drives local manufacturing, employment and technological development.