The Federal Government and Volkswagen Group have signed a memorandum of understanding (MoU) to develop an automotive hub in Nigeria.
With the agreement, the Nigerian government and Volkswagen Group South Africa (VWSA) are to come up with an enabling policy framework on the project.
The move is an offshoot of the weekend meeting between German Chancellor Angela Merkel and President Muhammadu Buhari in Abuja.
Under the new arrangement, the automobile firm is to implement a phased approach in relation to the assembly of vehicles down to positioning the nation as an automotive hub in West Africa.
The pact also includes raising a training academy in conjunction with the German government to equip pioneer employees with requisite skills.
The Federal Government, on its part, is to ensure that the Nigerian Automotive Policy, currently under consideration, gets accelerated approval.
This includes the gradual transition from the importation of used cars to the manufacturing and distribution of new passenger vehicles.
In a statement, the Strategy and Communications Adviser in the Ministry of Industry, Trade and Investment, Bisi Daniels, said government was committed to providing a conducive legislative environment for the production of automobiles in the country.
The minister, Dr. Okechukwu Enelamah, said the MoU was a major step in government’s quest for a robust automotive industry.