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
Innoson Vehicle Manufacturing Company Limited, a Nigerian automobile manufacturer, has urged the Federal Government to intervene regarding the tariff on electric vehicle (EV) components. The company believes that the current tariff structure could hinder local production and discourage investment in Nigeria's electric mobility sector.
This call for intervention came during a visit to Innoson's manufacturing facility by a delegation from the Manufacturers Association of Nigeria (MAN) in Anambra, Enugu, and Ebonyi. The delegation included the Managing Director of MAN Power Development Company Limited, Oweh Mba-Sam, representatives from Empower New Energy, and EPC partner Paras Energy & Natural Resources Development Limited. The group toured Innoson's EV production facility and inspected various electric vehicles.
Innoson's management expressed concerns that while finished electric vehicles enjoy concessions upon importation, the required components still face import duties. This dual-duty system raises production costs for local manufacturers and puts them at a disadvantage. Innoson urges the Nigerian government to review the tariff structure, aligning the country's electric-mobility policy with its local-content and industrialization goals.
The company argues that it should not incentivize the importation of finished EVs while discouraging domestic manufacturers from investing in production capacity.
Dr. Chukwudozie, the MAN delegation's chairman, emphasized the need for greater engagement between the government and local manufacturers. He stated that Nigeria's transition to electric mobility should be used to promote local production, create jobs, develop indigenous technology, and attract investment. Chukwudozie argued that encouraging the production of locally manufactured EV components, rather than only finished vehicles, would create a more attractive environment for investment and job creation.
The Innoson visit was part of MAN's ongoing effort to promote alternative energy solutions in the South-east region of Nigeria. The visit followed the MAN South-east Industrial Energy Solutions & Investment Symposium, where local manufacturers learned about various energy alternatives. Innoson is also exploring solar-energy options to reduce energy costs and improve its Environmental, Social, and Governance (ESG) and sustainability performance.
In a related development, the MAN delegation visited Juddy-Bolema Industries Limited, where they engaged with community stakeholders regarding the company's proposed solar-energy project. The visit aimed to address community and environmental concerns and move the project towards implementation. Successful implementation of the Juddy-Bolema project could inspire other manufacturers to adopt renewable energy and support MAN's broader sustainability objectives, potentially positioning the company for participation in the emerging carbon-credit market.
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