FG And The National Automotive Policy

Two world-class auto-mobile firms re
cently declared the intention to
manufacture their brand of cars in Nigeria and gave kudos to the Federal Government’s drive for Foreign Direct Investments (FDIs). Even more commendable is the deserved fillip it gives to the National Automotive Policy.
For some years now, Nigeria has been desirous of developing her automobile industry. Apart from the miles it would go in arresting capital flight and dependence on other countries for her vehicular needs, the role it would play in supporting transportation in the country is huge.
Also important is the apparent confidence the firms, and indeed, the international community has on Nigeria, in spite of some temporary security challenges the country contends with. In addition to the existence of a viable market in the country, this expression of faith underscores the dependability of the Nigerian economy.
As these firms take steps to set up in Nigeria, they may be opening the way for other investors, if the needed atmosphere is created for their business. Firms like this naturally attract support services that would either attract more investors to grow local entrepreneurs that should also be provided for.
While we commend the Federal Government for this policy dividend, we should not loose sight of the fact that this would not be the first time similar ventures would be carried out in Nigeria. There were assembly plants for Peugeot Automobile Nigeria (PAN), Volkswagen and even ANAMCO and they all went under over time.
The present administration must go beyond the feasibility study, the business plan and the National Automotive Policy to find out why the assembly plants failed, with a view to averting possible crisis for the current investors. From our stand point, we see no danger, but it will cost nothing to double check.
The Tide is actually elated that the commencement of business by the two manufacturing firms will not only add to one or two other such plants currently operating in Nigeria, but would make cars, including jeeps more affordable. Not only would it provide jobs, it would also change the face of Nigerian traffic that for many years depended on second-hand vehicles.
Of course, the cost of maintenance and the unexpected break-downs of such second hand cars, especially those made for other climates and quality of roads can be avoided. In spite of national policies on such “tokumbo” cars, the rush for them and the pressures on customers have not helped the Nigerian economy nor the safety of road users.
These are some of the reasons why we are excited by the prospect of actually manufacturing choice cars in Nigeria and not just assembling as was done before. This is also capable of bringing about the much awaited technology transfer in that sector. It will also encourage the use of some local materials, including steel from the nation’s steel rolling plants.
But for any business to thrive, some facilities, policies and expertise must be available. The Federal Government   may need to re-double the effort aimed at providing electricity round the clock. It must also ensure that the movement of materials and finished products are not hampered by the absence of serviceable rail line, and safe roads.
We think that this provides an opportunity to truly commence the drive for the take-off of industrialisation in Nigeria. Because those infrastructure that would support the operation of car manufacturing firms can also facilitate the operation of other industries. All it requires is the requisite plan and political will to take the needed steps.
The truth is that Nigerians are very enterprising and adventurous. All that is required is for the authorities to provide an investor-friendly environment for all to participate. Then the attraction of more foreign investors would be easy and wide spread as would be needed to build the economy for the 20:2020 mark.