Innoson Urges FG To Review EV Component Tariffs, Protect Local Production

Indigenous automobile manufacturer, Innoson Vehicle Manufacturing Company Limited (IVM), has called on the federal government to review tariffs on electric vehicle (EV) components, warning that the current regime could 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, Lady Dr Adaora Chukwudozie, visited its manufacturing facility as part of activities under MAN’s Industrial Energy Adoption Programme.

The delegation 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.

The team toured Innoson’s electric vehicle production facility and inspected some of the electric vehicles manufactured by the company.

Receiving the delegation, chairman of the Innoson Group, Chief Innocent Chukwuma, expressed concern that while concessions had been provided for the importation of finished electric vehicles, components required by local manufacturers continued to attract import duties.

According to him, the tariff structure increases production costs and places indigenous manufacturers investing in local EV production at a disadvantage.

Innoson therefore urged the government to align the tariff regime with Nigeria’s local-content and industrialisation objectives, arguing that policies should not make imported finished EVs more attractive than producing vehicles locally.

Reacting to the concern, Chukwudozie called for stronger engagement between the government and local manufacturers, saying Nigeria’s transition to electric mobility should be leveraged 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 visit formed part of MAN’s wider implementation drive following the South-East Industrial Energy Solutions & Investment Symposium, where manufacturers were introduced to alternative energy solutions.

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

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 focused on community and environmental considerations as the project moves towards implementation.

According to MAN, successful implementation of the project could encourage other manufacturers to adopt renewable energy while supporting 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 energy solutions by connecting manufacturers with renewable-energy financiers, technology providers and engineering partners.

Chukwudozie said the growing interest demonstrated that Nigerian manufacturers were willing to embrace cleaner energy but stressed the need for policies that would create an enabling environment for such investments.

“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,” she said.

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