Sad Song: Nigerian Auto Industry Loses 23,000 Jobs in 5 Years

ROTIMI ASHER

The auto industry in Nigeria lost 23,000 jobs in the past 5 years that the National Auto Development plan came into operation due to auto policy somersault and inability of Nigeria government to structure the budget to encourage government agencies and Nigerians to buy new cars from the operating auto assembly plants.

A  university Don and automotive industry consultant, Dr Oscar Odiboh disclosed this recently during a training workshop organized by Nigeria Auto Journalist Association in Lagos.

He said, ‘’ the implication of the 2019 budget which cannot ensure that Nigerians buy new cars from the assembly plants in the country is addition to 23,000 job losses of the past 5 years.’’

‘’ Another implication,’’ according to him, ‘’ is that the assembly plants will experience increase in the 58% drop in sales of 2018.

Odiboh said, ‘’ research based on observation of the 40 sampled assembly plants in Nigeria showed 5 years cumulative installed capacity of 450,000 vehicles but we have 5 years cumulative output of 15,000 vehicles. Average cumulative annual capacity is 90,000 vehicles but we have an average cumulative output of 375 vehicles. Average annual capacity per assembly plant is 2,330 vehicles but we have average annual output per assembly plant of 10 units.’’

He noted that it is really difficult to determine the number of assembly plants in the country as many were licensed but few are working. Some are fatally wounded and others dead on arrival.’’

To avoid more casualties in the auto industry, he advised the government to structure the annual budget to make government officials and Nigerians to buy new cars auto assembly plants.

‘’ The National Automotive Design and Development Council should embark on patriotism campaign on patriotism campaign on patronage of Made-In- Nigeria vehicles. The Nigeria Custom Service (NCS) should increase tariff on used imported vehicles from 30% to 80%. Reduce tariff on brand new imported vehicles from 70% to 30%. Introduce zero percent tariffs on SKD/CKD assembly vehicles and remove ten years tax holiday.’’

 

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