Yesterday was a washout in Abeokuta I was on Okada and was hit buy rain all day. A car is essential to get around but can you find an affordable fairly used made on Naija car to buy anywhere?
The quality of made in Nigeria cars are comparable if not better than many Tokunbo cars, as most have up to date technology and parts based on standard Japanese/US Spec Models available all throughout Nigeria. So quality isn’t the problem
Often Nigerians prefer to purchase an older model recognised brand like Mercedes, Lexus, or Toyota say 2012–2018 models than pay a little more for a 2024 Innoson, Nord, Proforce, or Benny Luxury car. So branding is a major issue. Not enough locally made cars on our streets to catch our eyes. How many can recognise an Innoson, Nord, or Progorce vehicle at a glance on the streets if you see one?
Most people buy what they know and are taken in by brand recognition & advertising, which extol the following characteristics: reliability, durability, quality, Style, Class Availability of parts, Ease of Repair & Affordability Name recognition is a major factor in buying cars.
When Nigerians abuse our legislators, often referred to as Legislooters for choosing imported SUV’s at N47m each instead of a locally built SUV of similar or better specs for less money. The question then arises how many Nigerian-made cars are there to meet a market of 235m Nigerians.
Answer clearly is not enough. Innoson produces 10 cars a day; this is pitiful in manufacturing terms and will never meet local demand. Proforce has had to curtail production and also has a miniscule production capacity. The same goes for Proforce & other local car manufacturers.
INNOSON will take years to manufacture the over 469 SUV’s just for the Fed Legislators, & that will be at full capacity without producing any other vehicles.
With the crashing of the naira, most Nigerians buy fairly used Tokunbo as opposed to New Tokunbo. Many manufacturers like GAC, Cheryl, Hyundai, and Peugeot assembling in Nigeria are witnessing low sales of their made in Nigeria cars as they cannot compete with imported fairly used Tokunbo cars. So cost is certainly a factor as to why Nigerians are not buying locally made cars.
We spend an average of $4bn on imported cars; that’s a lot of forex that could be spent on Nigerian cars.
The Facts show local commercial vehicle manufacture is booming as it is commercially viable for transporters to buy made in Nigeria Trailers, heavy-duty transport vehicles buses, etc
What most governments do? The government must set a 5 – 8yr time line when all it’s MDA’s at Fed, State & Local Levels must buy or use made in Nigeria vehicle when replacing or purchasing new vehicles.
The government shouldn’t necessarily increase tariffs on imported Tokunbo’s but give massive incentives to local manufacturers to make their cars more affordable, such that a locally made car is equal to or less than the price of a fairly used older Tokunbo.
This will result in more government subsidies, and as you know, I am not an advocate of more unaffordable government subsidies; however, this would be subsidies on production and not on consumption, so it gets my support.
These kinds of government-backed subsidies are what have helped car manufacturing in Japan, Korea, India, the US, & Europe. This is the kind of subsidy that we need in Nigeria, but we must avoid it’s abuse.
In addition, a robust Credit system must be put in place to enable Nigerians purchase these made-in-Nigeria cars without having to fork out N30m-N50m cash for a new car
The credit system should be government-backed with single-digit interest rates linked to BVN, NIN, and TIN. Other tax incentives can be given to commercial operators who purchase made-in-Nigeria vehicles for their operations.
There should also be preferential tax holidays given to pioneer local car manufacturers & local parts manufacturers & dealers of local parts for local car production.
There is much Govt can & must do in the vehicle manufacturing sector that can create millions of jobs and Turn Nigerians away from Imports to local manufacturing. Further incentives should also be provide for local car manufacturing Exports to AFCTA countries within Africa & outside Africa.
Can anyone tell us who is responsible for developing our Car Manufacturing & Utilisation policy where is the Fed Govt Policy on Local Car Manufacture, Consumption & Finance? If such a functioning document exists, I’m not aware of it and it must be made public. What are our legislators doing in regards to developing legislation to regulate & empower such policies?
If you have the answers, please let me know. On my quest to purchase a car, I have not seen any fairly used, locally made pickups for sale. We look forward to the day when at least 40% of cars being used in Nigeria will be locally made. That day is coming if we truly are determined to make it so. I duff my cap off to all Patriotic Nigerian manufacturers and foreign assemnly plants for taking the plunge to believe in Nigeria despite our economic challenges.
In these most testing times we need to patronise Made in Nigeria & Nigeria Made. Where do you stand? Please let me know & share thanks. We all Want & Deserve a Betta9ja
Femi Oke Betta9ja
