Vehicles
By Lucy Ogalue
Abuja, June 12, 2024(NAN): The National Automotive Design and Development Council (NADDC), has urged Nigerian to patronise made-in-Nigeria vehicles, saying they are affordable.
The Director-General of NADDC, Joseph Osanipin, told the News Agency of Nigeria (NAN) that patronising locally manufactured or assembled vehicles would bolster the country’s automotive industry and the economy.
NAN reports that the country has relied heavily on imported vehicles to meet its transportation needs for decades, and this dependence comes at a significant cost, both economically and strategically.
Importing vehicles drains foreign exchange reserves, exacerbates trade imbalances, and leaves Nigeria vulnerable to global market fluctuations.
Moreover, it stifles the growth of the domestic automotive industry, depriving the country of opportunities for job creation, technology transfer, and industrial diversification.
Recognising this challenge, the Federal Government through the NADDC, said it was intensifying its campaign to encourage the use of locally manufactured vehicles in the country.
According to the NADDC boss, vehicles assembled in Nigeria are new vehicles, and in terms of price, they can compete with new vehicles coming from outside the country.
“For instance, for utility vehicles like pickup van, if you look at the price, some pickup vehicles assembled in Nigeria are about 60 per cent of those coming from outside.
“Some are 70 per cent, some are 80 per cent based on the type of the pickup van, so in terms of price, they can compete with new vehicles,’’ he said.
Osanipin said that if given the necessary support, patronising made-in-Nigeria vehicles would boost the auto sector and, thus, significantly contribute to Nigeria’s Gross Domestic Product (GDP).
He said the patronage would stimulate local production, increase demand, encourage investment in the sector, and lead to more factories, improved technologies, and better living standards for many Nigerians.
The director-general acknowledged the challenges currently faced by local manufacturers, such as high production costs and competition from imported vehicles.
Osanipin reiterated the administration’s commitment to addressing and providing a conducive environment to encourage vehicle assembly and manufacturing in the country.
He said the Federal Government had established a Credit Scheme to boost the country’s automotive sector by ensuring the affordability and availability of locally assembled vehicles.
“So the credit scheme will not be for those who want to bring their vehicle from abroad, no, but if it is for locally manufactured.
“I am hopeful that the credit, which would be given at a favourable rate, will bolster growth, ensure the sector thrived, and contribute significantly to the economy,’’ he said.
Meanwhile, some consumers have decried the high cost of made-in-Nigeria vehicles and are appealing to the government to subsidise their cost for the benefit of common Nigerians.
Mr Chinedu Eze, an Abuja-based entrepreneur, said: “I thought buying a made-in-Nigeria vehicle would be more affordable, but the prices are almost as high as imported ones.
“I think a key factor contributing to the high prices is the cost of production. Local manufacturers face numerous challenges.
“This includes high import duties on raw materials and automotive parts, inadequate infrastructure, and fluctuating exchange rates.
“These issues not only drive up production costs but also translate into higher retail prices for consumers, thus, the need to address the issues.”
A civil servant, Amaka Okoro said: “producing vehicles locally is supposed to stimulate the economy and create jobs, but if the vehicles are too expensive for the average Nigerian, then it defeats the purpose.
“We want to support local industries, but it is hard when the cost is beyond our reach.”
A consumer, Mr John Amedu, also urged for government intervention, support and increased investment in infrastructure, such as subsidies for manufacturers and tax incentives.
“I understand the need to support our local manufacturers, but there must be a balance. The government should consider policies to make these vehicles more affordable for the average Nigerian,’’ Amedu said.
“There is hope that with better policies and a more favourable economic environment, the cost of made-in-Nigeria vehicles can eventually be brought down to a level that is accessible for the majority of Nigerians.
“For now, many Nigerianscontinue to look for more affordable alternatives, often turning to the second-hand market or imported used cars,’’ Amedu said. (NAN)(www.nannews.ng)
LCN/EEE
========
Edited by Ese E. Eniola Williams
Leave a Reply