The Director-General of the National Automotive Council, Engr. Aminu
Jalal has disclosed that the council has been receiving inquiries from
leading automobile manufacturing companies from across the globe since
the announcement of the new auto policy by the Federal Government with
the aim of setting up plants in Nigeria. He identified some of the auto
companies as Nissan, Toyota, Volkswagen, Honda, Kia, Tata, etc.
Attracting investments into the sector
The
Director-General in a paper titled “measures to transform the Nigerian
automotive industry and attract investments into the sector, said that
in many countries of the world, the automotive industry plays both a
strategic and catalytic role in economic development in respect of
employment creation, GDP contribution, economic linkages, skill
development, technology and innovation as well as SME development in
respect of automotive parts, components and services.
According
to him, “an automotive industry will create significant good quality
employment and wide range of technologically advanced manufacturing
opportunities. This industrial base can then form the foundation of
other modern advanced manufacturing activities such as commercial
vehicle production which will lead to the manufacturing of agricultural,
mining and railway equipment, military hardware and transport.
The
Director-General noted that data from the Nigerian Automotive
Manufacturers Association (NAMA), the Nigerian Bureau of Statistics
(NBS) and United Nations Conference on Trade and Development show that a
total of 400,000 vehicles (300,000 used and 100,000 new) valued at N550
billion (US$3.451 billion ) were imported in 2012 alone.
He
argued that at full capacity, the Nigerian Automotive industry has the
potential to create 70,000 skilled and semi-skilled jobs along with
210,000 indirect jobs in SMEs that will supply the assembly plants.
490,000 other jobs would also be created in the raw material supply
industries, adding that currently about 2,584 persons are directly
employed by the assembly plants.
The NAC boss further stated that
manufacture of vehicles would enable the country to acquire the
technologies of mass production, quality control, lean manufacturing,
computer aided design, manufacturing and engineering which can develop
other sectors of the economy and industrialization. On the prospect of
the automotive industry in Nigeria, he explained that Nigeria and
Bangladesh were the only countries in the top 10 by population without a
developed automotive industry, adding that “with our current population
and economy, our potential vehicle market is about a million vehicles
annually which is more than sufficient to support an automotive
industry.
Meanwhile, he said, Nissan, Renault and Toyota have
indicated keen interest to invest in Nigeria, if we develop a
comprehensive automotive development plan.
According to him,
Nissan and Renault have already reached agreement to assemble cars in
the former Volkswagen plant, now VON Nigeria Limited, in Lagos. Toyota
and others are now conducting feasibility study on vehicle assembly in
Nigeria, assuming that a comprehensive automotive development plan would
be in place.
Also speaking on the Nigerian tyre industry, Engr.
Jalal, blamed radical government policies for their death through
drastic reduction of tariff on imported truck tyres from 40 per cent to
10 per cent while keeping tariffs on car tyres the same which made local
producer uncompetitive against imports from Asia and Europe.
He
pointed out that although car tyre tariffs were kept at 40 per cent (20
duty and 20 levy) the disparity in car and tyre tariffs has led to a
situation were imported car tyres were declared as truck and bus tyres
so as to pay 10 per cent duty instead of 40 per cent as stipulated.
This, he said led to the closure of the two tyre manufacturing companies
(Dunlop and Michelin) in Nigeria.
To this end he disclosed that
the development plan has introduced measures to revive the tyre
industry. He also pointed out that the revival of the plants will create
over 3,000 direct jobs and save Nigeria N120 billion annually which is
currently being used to import tyres into the country.
Response by auto makers to new auto policy
According to the Nigerian Automotive Council (NAC), there has been massive response to the new auto policy.
A
week after the approval of the policy, NISSAN announced that it will
assemble vehicles at VON Nigeria ltd., with the first vehicle to
roll-out in April 2014.
The Embassies of EU, Japan and South
Korea were briefed on the policy at their request so that they can
inform their companies of the opportunity offered by the policy.
Toyota
and VW are conducting a feasibility study on assembling vehicles in
Nigeria and Peugeot is considering resuming operations. Honda, Kia, Tata
and others in Brazil and China made enquiries about assembling vehicles
in Nigeria, Michelin Tyres and DN Tyres Plc have received briefing and
are both in consultation to resume manufacturing activities in Nigeria;
GAC
Gonow Auto Company of China and Xiamen Golden Dragon Bus Co. Ltd of
China have both signed Completely Knocked Down (CKD) agreement with
Innoson Vehicle Manufacturing Company( IVM) Limited to increase capacity
for the production of Buses; SUVs models and set up a training center
in Nigeria;
CJSC Kamaz Foreign Trade Company of Russia has
consulted with the Ministry with a view to building its wide range of
trucks including its popular all terrain commercial and military
vehicles; The OEM dealer for KIA automotive products DANA Group, has
discussed extensively with a view to investing In a Kia Semi Knocked
Down (SKD) plant in Nigeria;
The Japan External Trade
Organisation has led a group of Japan companies including Messrs
Marubeni, Mitsubishi and NISHIZAWA (Nig.) Limited to obtain
clarification on policy. Investment proposals are expected; Fullmark
Urja Ltd has submitted application to the Ministry to commence the
manufacturing of Tricycle with 70% local content by April 2014 in Kano.
Installation of all necessary equipment has been confirmed;
COPE
and CIA LTDA of Brazil, the world second largest manufacturers of
Machines for General purpose including for Rubber, Plastic and Tyre
rethreads consulted with the Ministry with a view to setting up in
Nigeria as a preferred base for global supply; Discussions were held
with CAIO-INDUSCAR of Brazil on the assembly of its products in Nigeria.
They have been introduced to Leyland-Busan of Ibadan as potential
Nigerian partners.
A company assembling trucks at the Calabar Free Trade Zone, CC Auto Fze, plans to start assembling cars.
Tetralog
Nigerian limited, Enugu (Mercedes Benz truck dealers) has commenced
civil work for a world class automotive factory to assemble CKD for
Mercedes Trucks. A vehicle distributor, Lanre Shittu Motors informed the
NAC of their plan to assemble vehicles.
