Exploring the Gains of Executive Order 003 in Repositioning the Nigerian Automobile Industry

Nigeria as the most populated African nation plays a leadership role in the economic growth and sustainability of the continent. This status has made it very crucial for its people and government to tow the right path in its economic policies and programmes.

Executive Order 003, implemented in Nigeria, aims to enhance local manufacturing and reduce reliance on imported vehicles. This order mandates that government agencies prioritize the procurement of locally assembled automobiles, thereby stimulating domestic production. The initiative is expected to create jobs, boost local economies, and foster technological advancements within the industry. Additionally, it encourages foreign investment by providing a stable market for automotive companies. Overall, Executive Order 003 represents a strategic move towards self-sufficiency and economic diversification in Nigeria’s automobile sector.

For instance, it is a universal standard for every progressive economy to develop, utilize, patronize and consume its indigenous products and brands. This is an apparent phenomenon adopted in advanced countries as it relates to various sectors such as manufacturing, transportation, healthcare, education, sports, entertainment, infrastructure and a host of others.

A case in point is Japan, an Asian nation known for the design of technology driven, durable and fuel economic cars. This feat which has been the lasting trend for decades has made Japanese cars the best in the global market. Also relevant in the automobile industry is the United States and Germany which are renowned for the design of rugged Sedan/Saloon and Sports Utility Vehicles. These countries have defined a niche for themselves in the global automobile industry. Nonetheless this achievement came with the proverbial difficult sacrifice of today meant to pave the way to enjoy the pleasant gains tomorrow.

Such sacrifice cannot be farfetched as the products must have first been patronized indigenously while the manufacturer works tirelessly to adjust its imperfections and develop its brands to meet global standards. In Japan for instance, one of the inherent cultural principles of sustainable development is the acceptance of imperfections in every aspect of life’s demands.

These imperfections are considered a steady transition to achieving a goal. It is apparent that this principle was applied at the early stage of the country’s automobiles which were first manufactured in 1933. At the time there were teething problems that made their brands unacceptable in Europe and America. But in the last 80 years, the industry has grown tremendously with its brands reaching almost every continent on the globe.

One of the steps taken to encourage indigenous products and brands is the Executive Order 003. The order which was signed in 2017 under the then Acting President, Prof. Yemi Osinbajo states that all ministries, department and agencies (MDAS) shall grant preference to local manufacturers in the procurement of goods and services. The order which elicited commendations from experts was meant to promote transparency and efficiency in Nigeria’s business industry and ensure effective budget implementation, as well as support local content in public procurement.

Seven years after the order was signed, its effects are yet to fully reflect in the purchases of cars for MDAs. Despite the existence of a number of indigenous automobile manufacturers in Nigeria; Japanese, German and South Korean brands of cars still dot the nation’s government premises and the nation’s roads.

This indeed portends a worrisome outlook for the nation’s automobile industry which in-turn has negative implications on the nation’s economy. It therefore brings to bear the need to further encourage and fund the indigenous automobile industry in Nigeria.

Moreover, a recent declaration by the Vice President Kashim Shettima at a manufacturing summit in Abuja that the Executive Order 003 was still in effect is commendable. However, more should be done to ensure implementation and sanctions.

It is also necessary for the nation’s leaders to live by example in its choice of automobiles. It is undeniably necessary for all ministries, departments and agencies to consider the order as crucial to the sustainable development of the country. This in turn, will further crystalize the ‘Renewed Hope Agenda’ of the President Bola Tinubu’s administration in placing Nigeria on the path to sustainable economic development.

Writing by Olayemi Daniyan of Our Presentation Unit, Michael O; editing by Annabel Nwachukwu