Still basking in the euphoria of the newly-introduced National Automobile Policy, which favours indigenous auto assembly plants, director general of the National Automotive Council (NAC); Mr Aminu Jalal has lamented the almost comatose nature of the industry in Nigeria.
He said yesterday that, Nigerian’s penchant for purchase of imported vehicles has been causing the nation about N400Billion annually since 2008.
Jalal said that data from the Nigerian Automotive Manufacturers’ Association indicted that installed capacity of the Nigerian Automotive Industry surpassed annual vehicular demand.
“Annual installed capacity in assembling is 150,000 units, valued at N550 billion.
“A total of 70,000 new and 200,000 used vehicles, valued at over N400 billion, are imported annually since 2008.
“Potential value added, if imports were locally assembled, will be N145 billion with additional value incidentals, if local content programmes are vigorously pursued,” he said.
The National Automotive Council boss said that the capacity utilisation of the automotive sector had dropped to less than 10 per cent.
Jalal said in Lagos that the sector was in bad shape and needed urgent attention in the interest Nigeria’s economic growth.
He noted that it had capacity utilisation of about 90 per cent in 1981.
“There were over 50 auto component manufacturers in Nigeria before, some of which were Original Equipment Manufacturers (OEM).
“Many of them had to fold up due to lack of demand and poor infrastructure,” he said.
Jalal said that the automotive sector, at full capacity, could employ more than 70,000 skilled and semi-skilled labour, with more than 200,000 indirect employment.
“Unfortunately, the total current operating capacity for the local assembly plants by value is just N6 billion,” he said.
He urged the Federal Government to address low demand, competition from China and India and lack of adequate infrastructure in order to revive the sector.
“These are challenges that affect the sector, and if they can be eliminated, the sector can benefit the economy through job and wealth creation.
“The automotive local content generates many SME’s and high paying jobs.
"This is why both developed and developing economies nurture and protect their automotive industries,” he said.
Jalal said that, with an annual auto import bill of over N400 billion, the automotive sector was well positioned to add gains to Nigerian economy.
“The industry has the potential to make Nigeria become the auto manufacturing centre for the ECOWAS sub-region and beyond,” he said.
http://shippingposition.com.ng/article/nigeria-imports-n400billion-vehicles-2008-%E2%80%93-nac
He said yesterday that, Nigerian’s penchant for purchase of imported vehicles has been causing the nation about N400Billion annually since 2008.
Jalal said that data from the Nigerian Automotive Manufacturers’ Association indicted that installed capacity of the Nigerian Automotive Industry surpassed annual vehicular demand.
“Annual installed capacity in assembling is 150,000 units, valued at N550 billion.
“A total of 70,000 new and 200,000 used vehicles, valued at over N400 billion, are imported annually since 2008.
“Potential value added, if imports were locally assembled, will be N145 billion with additional value incidentals, if local content programmes are vigorously pursued,” he said.
The National Automotive Council boss said that the capacity utilisation of the automotive sector had dropped to less than 10 per cent.
Jalal said in Lagos that the sector was in bad shape and needed urgent attention in the interest Nigeria’s economic growth.
He noted that it had capacity utilisation of about 90 per cent in 1981.
“There were over 50 auto component manufacturers in Nigeria before, some of which were Original Equipment Manufacturers (OEM).
“Many of them had to fold up due to lack of demand and poor infrastructure,” he said.
Jalal said that the automotive sector, at full capacity, could employ more than 70,000 skilled and semi-skilled labour, with more than 200,000 indirect employment.
“Unfortunately, the total current operating capacity for the local assembly plants by value is just N6 billion,” he said.
He urged the Federal Government to address low demand, competition from China and India and lack of adequate infrastructure in order to revive the sector.
“These are challenges that affect the sector, and if they can be eliminated, the sector can benefit the economy through job and wealth creation.
“The automotive local content generates many SME’s and high paying jobs.
"This is why both developed and developing economies nurture and protect their automotive industries,” he said.
Jalal said that, with an annual auto import bill of over N400 billion, the automotive sector was well positioned to add gains to Nigerian economy.
“The industry has the potential to make Nigeria become the auto manufacturing centre for the ECOWAS sub-region and beyond,” he said.
http://shippingposition.com.ng/article/nigeria-imports-n400billion-vehicles-2008-%E2%80%93-nac
No comments:
Post a Comment