The National Automotive Council (NAC) said that the bulk of Nigeria resources were? expended annually on importation of vehicles into the country.
The Director – General of NAC, Aminu Jalal,made this disclosure recently when he received in audience,? the Minister of State for Trade and Investment, Dr. Samuel Ortom at the NAC office in Abuja.
Jalal?? who disclosed that?? the country’s annual installed capacity in assembling and manufacturing of vehicles was? 150,000 units which is valued at about N550 billion,however lamented that “unfortunately, the total current operating capacity for local assembly plants is valued at a mere N30 billion annually.”
He? said? that if the automotive industry? was functioning at full capacity, it was capable of creating direct jobs of about 70,000 skilled and semi-skilled and about 210,000 indirect jobs.He also said? that if all the imported vehicles were locally assembled, the figure could add up to N145 billion.
The NAC boss however told the minster that if Nigeria was? serious about achieving its dream of manufacturing local vehicles, government must? among other things increase tariffs on imported FBUs to at least 35 per cent, patronise? local automotive products and? facilitate access to capital through an intervention fund.
“The experience of other developing countries like South Africa, Egypt, Brazil, India, Malaysia, Thailand, Indonesia and China with an automotive industry shows that it requires government’s incentives, protection and patronage,” he said.
In his response, the minister while commending NAC for its efforts in the automotive industry, added :“If this council is put to use fully, most of the challenges of unemployment in Nigeria will not be there. I have listened to the director-general and will take up the responsibilities for what we think can make things work for this council.
“Whatever are the challenges, we are ready to take them up to provide a conducive atmosphere for the council to thrive and create these opportunities for Nigerians,” he said.