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Local car manufacturing in desperate situation
Sun, 23 Sep 2007 00:00



Many local manufacturers like Volkswagen Nigeria and Steyr have totally disappeared from the radar. Peugeot Automobile Nigeria (PAN) and Anambra Motor Manufacturing Company Limited (ANAMMCO) are the only companies retaining a sense of dignity.

Some of the problems facing the industry are:

  • The inability of Nigerians to afford locally-assembled cars.
  • The high cost of production.
  • A poor operating environment.
  • Out-dated technology.

    Despite the ability of a company like PAN to survive in such a hostile environment, its production capacity has decreased severely over the years. Presently it can only produce 22 cars a day.

    Nigeria's dream of industrialisation risks suffering a major setback as non-Nigerian vehicle importers will effectively control the industry if local manufacturing comes to a halt. A disintegration of the industry will also leave thousand of workers unemployed

    Experts suggest that government take the following steps to rescue the automobile manufacturing industry:

  • Provide legislation on consumer credit that will enable more Nigerians to afford locally-made cars.
  • Scrap customs duties for the importation of raw materials used in local car manufacturing.
  • Force those who import more than 2 000 vehicles a year to set up assembly plants. This can attract foreign investment as well as create local jobs.
  • Launch a campaign to encourage citizens to buy made-in-Nigeria goods.

    President Umaru Musa Yar'Adua has promised to try and revive Nigeria's automobile manufacturing sector.



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