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Car manufacturing industry in Nigeria attracts over $1bn investments

Car manufacturing industry in Nigeria attracts over $1bn investments

The Nigerian automobile industry has received a boost of over $ 1 billion investment from Auto manufacturers in 2019, it equally recorded a shift in their production capacity to at least 408,870 vehicles yearly.

The cars manufacturing companies include Innoson, Honda, Peugeot, and Mitsubishi among others, have also created employment for over 4,782 Nigerians.

The Director-General, National Automotive Design and Development (NADDC), Jelani Aliu revealed this on  Saturday in his message  at  the ongoing review of the Nigerian Automotive Policy Bill, & Nigerian Automotive Industry Development Plan (NAIDP), in Abuja.

Speaking further he said the NADDC in it’s effort to assist Nigerians buy new cars has put in place a N5billion vehicle finance package, repayable at agreed term. This according to him was to increase the production of New cars in Nigeria and reduce the patronage of fairly-used cars, which has over the years  drain the nation’s foreign reserves, and create jobs for foreign countries.

“Nigerians can now put down say, 10 per cent of the value of cars they wants to buy and spread payments for over five years. This arrangement has been concluded with some selected banks in the country with the support by the Central Bank of Nigeria (CBN). If we go this way, our citizens will also begin to enjoy ridding new vehicles,” he said.

The Area Controller, Port Terminal Multipurpose Limited (PTML) Command, Nigeria Customs Service, Mrs. Florence Dixon noted that despite the ban on vehicle by the federal government through land borders, the importation of fairly used vehicles into the country is on the increase.

According to her, vehicle importation through the Lagos Seaport increased to 35 per cent within third quarter of 2019.

Should Nigerias continue to patronize fairly used cars, the sale of brand new  locally manufactured vehicles in Nigeria will continue to experience low patronage, but the figure revealed shows a slight increase of 11,000 units sold last year as against the 10,000 units recorded in 2018.

According to the general manager, Stallion Motors in Nigeria, Arpita Roy Luthra, with the finance initiative, the automobile industry Will record more  sales in 2020.

He said, “I foresee an increase in sales in the new year. In fact, we are very happy with the kind of direction the government is taking. One is the closure of land borders, so that has boosted our businesses.”

Speaking also, the Managing of Director/Chief Executive Officer, Cars45, an automotive trading platform, Mr. Etop Ikpe, said that the land border closure has been a blessing to the auto companies in Nigeria, adding that financing in the automobile industry is a major challenge,he thereby urged Nigerian government to make finance available for vehicle purchase.

To this end, Aliu solicited the support of stakeholders to provide concrete recommendations that will be captured in the proposed new NAIDP bill to be forwarded to the National Assembly for passage.

The minister of Industry, trade and investment, Niyi Adebayo while declaring the dialogue open, stated  that Federal Government is making  efforts to implement the Nigerian Recovery and Growth Plan (NIRP), he said government has plans to transform the Nigeria automobile industry in order to attract investment into the sector by approving  the new auto development plan.

He charged participants in the event to work together and come up with a concrete plans that will help the industry experience a shift in Nigeria and enable the economy thrive.

The Chairman of NADDC Board, Senator Osita Izunaso, earlier in his remark told participant to come up with recommendations which when put together as an Executive Bill that will be passed to the National Assembly.

“This meeting, organised by the Federal Ministry of Industry, Trade and Investment (FMIT), in conjunction with the National Automotive Design and Development Council, brings together all actors in the Nigerian automotive industry, to discuss and review the efforts put in to get the Auto Policy Bill passed by the 8th National Assembly, but couldn’t get Presidential assent due to observed shortcomings.”

Izunaso said  the NAIDP 2014-2024, was designed to enable the growth of the auto industry and to ensure a sustained development of the industry in Nigeria,he stated that the plan was to address the challenges faced by the industry such as infrastructural development, market expansion, skills development, investment promotion and improvement of standard skills.

 

Writer: NewsDirect

Date: February 03,2020

Source: nigeriannewsdirect

Photo Credit: nigeriannewsdirect

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