The Director-General, National Automotive Council of Nigeria, Mr Aminu Jalal, last Sunday in Lagos said the Federal Government needed to enhance the nation’s automotive industry for sustainable economic growth.

Jalal told newsmen that this was necessary because the current state of the industry was discouraging.

He said capacity utilisation in the industry had dwindled from 90 per cent in 1981 to 10 per cent currently.

“There were more than 50 auto component manufacturers in Nigeria before, some of which were original equipment manufacturers (OEM). “But many of them have closed down due to lack of demand and infrastructure,” Jalal said.

He said the installed capacity of the Nigerian automotive industry surpasses the annual vehicular demand as indicted by data from the Nigerian Automotive Manufacturers Association (NAMA).

“Annual installed capacity in the assembling/manufacturing is 150,000 units, valued at N550 billion, while 70,000 new and 200,000 used vehicles valued more than N400 billion were imported annually since 2008.

“The potential value added, if imports were locally assembled, will be N145 billion with additional value incidental, if local content programmes are vigorously pursued,’’ the director-general said.

He said the automotive sector, at full capacity, could employ 70,000 skilled and semi-skilled workers and 200,000 in indirect employment.

“But unfortunately the total current operating capacity for the local assembly plants by value is just six billion Naira,’’ Jalal said.

He urged the Federal Government to urgently address the issues of low demand, competition from China and India and lack of infrastructure so as to revive the sector.

“These are some of the challenges that affect the sector, and if they can be eliminated, the sector will benefit the economy through jobs, wealth-creation and technology-acquisition. The automotive local content generates many Small Medium Enterprises (SMEs) and high-paying jobs and that is why both developed and developing economies nurture and protect their automotive industries,’’ the director-general said.

Jalal said with an annual auto import bill of more than N400 billion, the automotive sector in Nigeria was well positioned to improve the nation’s economy. “Large employment generation, effective utilisation of local raw material and resources, acquisition of technological know-how, foreign exchange savings and earnings are just some the gains if the sector operates at full capacity. “The industry has the potentials to turn Nigeria into the auto manufacturing centre for the ECOWAS sub-region and beyond,’’ he said.