Innoson Faces New Competition As FG Announces Agreement With China

• The federal government has given approval to China to establish electric vehicle factories in Nigeria
• The move is part of a broader partnership to harness Nigeria’s solid minerals and boost local industrialisation
• With this new development, China will now compete with local automakers like Innoson Vehicle

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

Automakers from China have been granted approval to establish electric vehicle (EV) factories in Nigeria.

This move comes amidst efforts by the current administration to harness Nigeria's abundant solid mineral resources for local manufacturing and economic diversification.

Chinese Ambassador to Nigeria, Yu Dunhai, spoke to the collaboration during a recent courtesy visit to Dr. Dele Alake, the Minister of Solid Minerals Development.

Ambassador Dunhai, during the meeting, spoke on China's commitment to advancing Nigeria's industrial growth through strategic partnerships in the mining and manufacturing sectors.

A statement from the minister's Special Assistant on Media, Segun Tomori, titled Big Win for Nigeria confirmed the plans for new factories in Nigeria.

It also revealed China's readiness to invest in EV production facilities in Nigeria., Punch reports.

Ambassador Dunhai emphasised Nigeria's strategic importance in China's foreign policy, echoing recent high-level engagements between President Bola Tinubu and Chinese President Xi Jinping, which elevated bilateral relations to a comprehensive strategic partnership.

Nigeria, China collaborate on automaker vehicles

Minister Dele Alake reaffirmed Nigeria's openness to serious investors, stressing the shift towards local value addition within the mining industry.

He highlighted Nigeria's vast market potential and the opportunity to reduce reliance on fossil fuels through local EV production and battery manufacturing.

The minister said:

"We have prioritised local processing of our minerals to drive Nigeria's industrialisation.We have an abundance of lithium as a catalyst for local EV and battery manufacturing."

Ambassador Dunhai expressed support for Nigeria's local value addition initiatives, aligning with President Xi Jinping's commitment to promoting African industrialisation.

He confirmed plans to establish EV factories and other manufacturing ventures in Nigeria, emphasising compliance with Nigerian regulations and environmental standards.

Ambassador Dunhai stated.

"We are committed to deepening our collaboration with Nigeria across President Tinubu's priority areas, especially economic diversification through solid minerals."

The embassy and the Chinese government have also emphasised the importance of responsible corporate behaviour among Chinese firms operating in Nigeria, pledging to uphold environmental and safety standards.

Minister Alake acknowledged the cooperative efforts while addressing concerns over isolated incidents involving illegal mining activities by some Chinese nationals.

"We appreciate our longstanding relations with China and the positive contributions of compliant Chinese firms."

Innoson Motors unveils Nigeria’s first locally made electric vehicle

Earlier, Legit.ng reported that Innoson Motors has released its first local electric vehicle, marking another significant milestone for Nigeria's automobile sector

This release aligns with the company’s commitment to reducing reliance on imported vehicles and playing in the global auto market.

Electric vehicles are increasingly becoming part of the daily lives of people around the world due to their importance in reducing carbon emissions.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng