Amidst the myriad man-made challenges currently bedeviling the socio-political scene in Nigeria, perhaps not many have noticed the definite and sustained progress that is being made on all fronts-socio-economic and political. That is what politics of negative propaganda and acrimony has wrought in the polity, making it difficult, if not impossible, for Nigerians to appreciate what the government they elected into office has achieved so far. But in a way, the Jonathan administration should be blamed, too, having been shy to blow its own trumpet where none does so for them. It was Abraham Lincoln in recognition of the potency of sentiment who said “with public sentiment nothing can fail; without it, nothing can succeed.” For the same reason, Lincoln believed strongly that “he who molds public sentiment goes deeper than he who only enacts statutes or pronounces decision.” When will Dr. Jonathan and his team begin to blow their trumpet so that many Nigerians may get to see or know about the numerous positive changes that have steadily occurred even in the face of all the odds placed in his way?
Take a few examples. On the economic scene, an on-going agricultural revolution which has seen a revitalization of the fertilizer distribution system that resulted in 4.2million farmers receiving subsided inputs, an additional production of nearly 8million metric tonnes of food and the consequent reduction in the food import bill from N1.1 trillion in 2011 to N648 billion in 2012 has already garnered international praise, with the Minister of Agriculture and Rural Development Dr. Akinwunmi Adesina receiving global recognition for his efforts. This too has not been sufficiently brought to the knowledge of Nigerians.
One promising sub-plot of this unfolding vista of economic and political rejuvenation is the Automotive Industry Development Plan which has the stated objective of reviving local vehicle-assembly plants in order to boost local production of vehicles. The benefits of such a vibrant automotive sector to the Nigerian economy are strategic, as it could play a catalytic role in the economic development of a nation.
In South Africa for instance, the auto industry alone contributes about 7 percent of GDP and 12 percent of exports, and is the second largest employer of labour. Worldwide, the International Organization of the Motor vehicle Manufacturers (OICA) estimates that the auto industry directly employs over 9 million people. But going down the value chain beyond those directly employed, the automotive industry can stimulate the growth of thousands of small, Medium and Micro Enterprises (SME) which would be involved in the development of numerous automotive parts, components and services. An automotive industry will create significant good quality employment and a wide range of technology advanced manufacture opportunities. Such an industrial base could form the foundation of the other modern advanced manufacturing activities for example in agricultural, mining and railway equipment production.
This is because vehicle assembly is actually the final end step in a long process involving designing and manufacturing thousands of parts, components and sub-systems. Major materials like chemicals, rubber, plastic, glass steel and electronics will have to be sourced locally and the suppliers are likely to be scattered all over the country, not just concentrated in the assembly plant. Such raw-materials and sub-component suppliers will constitute the upstream sector. According to the National Automotive Council (NAC), the Nigerian Automotive Industry currently assembles only commercial vehicles as they are easier to produce, whereas Nigeria need car assembly/production to fully benefit from the industry’s potential. The NAC has pointed out that Nigeria is well positioned to be a major assembly hub for international auto companies due to the country’s existing installed capacity, large labour force, significant local demand, and strategic location for exports. Data from Nigerian Bureau of Statistics (NBS) and the United Nations Conference on Trade and Development (UNCTAD), indicate that a total of about 400,000 vehicles (100,000 new and 300, 000 used valued at over N550 billion or $3.451 billion) were imported in 2012.
NAC stated that potential value added, if imports were locally assembled today will be N100 billion, with additional value incidental if local content programmes are vigorously pursued and that at full capacity the Nigerian Automotive industry has the potential to create 70, 000 skilled and semi-skilled jobs along with 210, 000 indirect jobs in the SMEs that will supply the assembly plants.
The downstream sector comprising of hundreds of distributors, dealerships and services centre across the country will further boost the economic impact of local vehicle manufacturing.
Other potential benefits from the local manufacture of vehicles include enabling Nigeria to acquire the technologies of mass production, quality control, lean manufacturing, computer aided design, and manufacturing engineering, all of which can be used to develop other sectors of the economy and hasten industrialization. The new Auto Policy announced in September last year, which took effect on July 1 this year, raised the import tariff on fully built cars from 20 percent to 70 percent for companies without assembly plants in the country, with a zero percent duty on imported completely Knocked Down Vehicles. This was done ostensibly to shift the advantage to local manufacturers and the new automotive policy is already attracting interest from major vehicle manufacturers.
Only last week it was revealed that Toyota Motor Corporation, the world’s biggest vehicle-maker had after completing a feasibility study finally given in to pressure from its Nigerian representative to start a local assembly plant which is expected to take off July next year. The Japanese automaker is reportedly keen to retain its number one position in the local auto market. Toyota is currently estimated to sell between 18, 000 and 20, 000 new vehicles in Nigeria annually through seven accredited dealers. The cheaper cost of local production as against full importation is expected to drive down the unit costs of some of their best-selling vehicles.
Kia Moto Corporation, a Korean auto firm with large local visibility has also commenced preparation towards setting up assembly plants in the country. They have confirmed plans to roll out their first set of made-in-Nigeria vehicles from their Lagos plant in September this year. Recall that about three months ago, another auto giant from Japan, Nissan Motor Company, unveiled the first set of Patrol Jeeps assembled in its Lagos-based assembly plant, which were presented to President Goodluck Jonathan in Abuja. In Spite of all the security problems, Nigeria has never had it so good. When will GEJ begin to blow his own trumpet?
A vehicle purchase scheme is already being mooted to ensure that Nigerians can acquire these new cars which will shortly be rolling off our assembly plants. The NAC is understood to be liaising with financial institutions and vehicle manufacturers on establishing a consumer credit framework which will enable Nigerians purchase brand new locally-built cars without having to pay in full in the first instance. This is a win-win scenario for everyone concerned, except perhaps for those who rather have Nigeria bled dry of foreign exchange by remaining dependent on the importation of fairly sub-standard vehicles. GEJ should begin to blow his own trumpet.

Nigeria’s progress: Fiction or reality?