Chinedum Treasure
Indigenous automobile manufacturer, Innoson Vehicle Manufacturing Company Limited has called for urgent Federal Government intervention over what it describes as a major tariff imbalance threatening the competitiveness of locally manufactured electric vehicles in Nigeria.
The appeal came during a visit to the company’s manufacturing facility by a delegation of the Manufacturers Association of Nigeria (MAN), Anambra, Enugu and Ebonyi Branch as part of the implementation of the MAN Industrial Energy Adoption Programme.
The delegation, led by the Branch Chairman, Lady (Dr.) Adaora Chukwudozie, included representatives of MAN Power Development Company Limited (MPDCL), Empower New Energy of Norway, the programme’s financing partner, and Paras Energy & Natural Resources Development Limited, the EPC partner.
The visit formed part of follow-up engagements with manufacturers that have expressed interest in adopting renewable energy solutions under the MAN initiative.
During a tour of Innoson’s electric vehicle production facility, the delegation inspected the company’s EV plant as well as electric vehicles already developed by the indigenous manufacturer.
However, management raised concern over the tariff structure affecting local EV production.
According to the company, after significant investment had been made in establishing local EV manufacturing capacity, the Federal Government granted duty concessions for the importation of fully built electric vehicles, while duties remained applicable to components required by Nigerian manufacturers to produce the same vehicles locally.
The company said the situation places locally manufactured electric vehicles at a competitive disadvantage against imported finished vehicles and threatens the commercial viability of investments already made in domestic EV production.
The development has renewed calls for Government to examine the tariff structure and ensure that fiscal incentives intended to encourage electric mobility do not inadvertently discourage local manufacturing.
Lady Chukwudozie described the issue as one requiring urgent policy attention, noting that Nigeria’s transition to cleaner transportation should simultaneously support domestic industrialisation.
She stressed that encouraging the importation of finished electric vehicles while making components required for local production comparatively more expensive could undermine the country’s objectives of creating jobs, developing local technological capacity and reducing dependence on imports.
“Our transition to clean energy must also be an industrialisation opportunity for Nigeria. We cannot encourage electric mobility on one hand and unintentionally make it more difficult for Nigerian companies that have invested in producing the vehicles locally to compete,” she said.
MAN boss called for constructive engagement between Government, MAN and indigenous EV manufacturers to review the tariff framework and create a level playing field for domestic producers.
The Innoson visit followed another significant milestone in the MAN Industrial Energy Adoption Programme at Juddy-Bolema Industries Limited, one of the pioneer companies under the initiative.
A Community Stakeholders’ engagement was held in connection with the company’s proposed solar energy project.
The engagement was described as very encouraging and represents another important step in moving the project forward, including the environmental and community considerations associated with its sustainability and potential carbon-credit journey.
The process is intended to ensure that the renewable-energy project is developed responsibly, with due consideration for its environmental and community impact.
Juddy-Bolema’s project is expected to serve as an important demonstration of the MAN initiative, showing manufacturers how renewable energy can potentially reduce energy costs while improving environmental performance and supporting broader ESG and sustainability objectives.
Innoson Targets ESG and Sustainability Compliance
Innoson has also indicated interest in participating in the MAN Industrial Energy Adoption Programme with the company exploring solar and other renewable-energy solutions as part of its ambition to strengthen its Environmental, Social and Governance (ESG) and sustainability credentials.
The initiative is being coordinated by MPDCL, with Empower New Energy, a Norwegian renewable-energy investment company, providing financing support and **Paras Energy & Natural Resources Development Limited** providing engineering, procurement and construction expertise.
The programme seeks to help manufacturers transition towards more affordable, reliable and cleaner energy without the prohibitive upfront capital expenditure that has traditionally constrained renewable-energy adoption by industrial companies.
Delegation Also Visits Cutix Plc
As part of the same industrial engagement, the delegation also visited **Cutix Plc**, another leading South-East manufacturer that has expressed interest in exploring opportunities under the MAN Industrial Energy Adoption Programme.
Discussions centred on the company’s energy requirements and the potential for tailored renewable-energy solutions to reduce operating costs, strengthen energy security and support its sustainability objectives.
The visits signal the next phase of the programme following the recent **MAN South East Industrial Energy Solutions & Investment Symposium**, as MPDCL and its partners move from Expressions of Interest to factory-level assessments and project development.
Lady Chukwudozie said the growing number of manufacturers expressing interest in the initiative demonstrates the urgency of finding practical solutions to the energy challenges facing Nigerian industry.
She noted that the objective goes beyond installing solar systems, as the programme is intended to help manufacturers lower energy costs, improve competitiveness, reduce carbon emissions and increasingly position themselves to meet ESG and sustainability requirements demanded by international investors and markets.
She expressed optimism that successful pioneer projects would encourage wider participation by manufacturers across the South East and eventually other parts of the country.
“What we are beginning to see is a movement from conversation to implementation.
“But as manufacturers invest in cleaner energy, Government policy must move in the same direction. Companies such as Innoson that have invested heavily in local manufacturing and cleaner technologies should be encouraged, not placed at a disadvantage against imported finished products,” she added.
The MAN Chairman therefore appealed to the Federal Government and relevant fiscal authorities to urgently examine the duty regime affecting electric vehicles and their components, with a view to ensuring that Nigeria’s transition to electric mobility supports rather than undermines indigenous manufacturing.
For Innoson, the issue goes beyond one company.
It raises a broader question for Nigeria’s industrial policy: whether the country’s transition to a greener economy will create new opportunities for Nigerian manufacturers—or simply create a larger market for imported green technologies.
About Author
