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A new report on the automotive industry in Nigeria released by PricewaterhouseCoopers (PwC) says that Nigeria has the potential to become the hub of Africa’s automotive industry.

The report titled “Africa’s Next Automotive Hub,” took an in-depth look at the Nigerian automotive industry from the 1960s to date and stated that the Nigerian government’s 2013 policy to revive the automotive industry through the National Automotive Industry Development Plan (NAIDP), contributed largely to the projection.

According to Nigeria’s Leadership report, the policy, which seeks to discourage vehicle importation and encourage local production, has attracted a number of top automotive brands into Nigeria with three already commencing assembly in the country as at 2015.

It pointed out that 30 other brands have signed commitments with technical partners and have already obtained licenses to assemble passenger cars, sports utility vehicles (SUVs), buses, and trucks in the country.

A partner with the PwC Nigeria and co-author of the automotive report, Mr. Andrew S. Nevin, said during the presentation of the report that industry experts believe that Nigeria’s potential annual new car market could be as high as one million.

It currently sits at about 56,000 in a used vehicle dominated market. The National Automotive Design and Development Council (NADDC) estimates annual imports at about 400,000 vehicles (100,000 new and 300,000 used), valued at about US$3.45 billion.

He stated that local production capacity stands at 100,000, noting that utilisation has over the years dropped to less than 15 percent.

The NADDC believes the automotive industry, which currently employs around 2,600 workers, has the potential to generate 70,000 direct jobs and 210,000 indirect ones.

Source : starafrica.com

Posted on : 22 Nov,2024 | News Source : ABNews