A new report by the Deloitte Africa’s Automotive Insights, which was published in April 2016, has revealed that the local production of vehicles in Nigeria dropped in 2015. The report said production dropped from 4,000 units in 2014 to 2, 500 units in 2015.
This came despite the efforts of the Nigerian Government to encourage local automobile production through the launch of the Nigeria Automotive Industry Development Plan (NAIDP) in 2014 and the subsequent hike in import tariffs for vehicles which has attracted the interest of leading international auto makers and has led to the resumption of small scale vehicle assembly plants in the country.
The report said: “In 2015, local assembly was only able to cover 10-15% of the new vehicle market. According to Bloomberg, Nigeria produced 4 000 vehicles in 2014. Representatives from the Lagos Chamber of Commerce and Industry put the total number of locally assembled vehicles at approximately 2, 500 units for 2015.
“A leading commercial vehicle assembler cautioned that even these figures of locally assembled vehicles are likely to be overstated. A number of assemblers either only assemble a very limited number of ‘test vehicles’, or overstate the degree of value added in the assembling process in order to gain access to benefits under the NAIDP, highlighting the need for clear measures that ensure adequate implementation of the policy.
“According to a senior representative of one of the automotive companies present in Nigeria, approximately 1 000 passenger vehicles were assembled in Nigeria in 2015 – an even more conservative estimate. Currently, 35 companies are licensed to produce by the Nigerian Automotive Council under the NAIDP. Despite the increased focus on the automotive industry, the sector’s contribution to Nigeria’s GDP remains low at 0.07% in Q2 2015.
“At present, the vehicles are assembled from imported SKD kits with a limited degree of local inputs-sourcing due to the lack of a reliable and adequate domestic supplier base. While current assembly figures are low, with Peugeot Automobile Nigeria recording the largest number of vehicles assembled in 2015 with 400 units, the automotive companies aim at increasing their annual output in order to capitalise on the long-term growth prospects of the Nigerian market.
“However, due to the current economic slowdown, expansion plans are likely to be delayed as reflected in the decline of employment levels in some of the assembly facilities.”
Ibadan Tanker Explosion: OYRTMA Issues Traffic Advisory
By Aduragbemi Omiyale
The Oyo State Road Transport Management Authority (OYRTMA) has advised road users to use alternative routes, while its men and other relevant agencies strive to return normalcy to the route.
This traffic advisory became necessary following an explosion of a petrol-laden tanker along the Agodi area in Ibadan, the state capital.
The Chairman of OYRTMA, Mr Akin Fagbemi, in a statement on Friday, stated that efforts were being made to bring the situation under control.
He stated that “the incident, which resulted to the slagging of powered electric poles and cables dangling across the road, portends danger to motorists plying the route hence, in the interim, the authority has barricaded the way from Total-Garden to Agodi-Gate, Ibadan to enable safety officials of relevant government agencies evacuate the affected vehicles and restore normalcy.”
“Motorists are advised to navigate towards the State Secretariat at the Total-Garden Round-about to link the Government Road towards the Kola Daisi Civic Center inwards Agodi-Gate to Iwo-Road,” he disclosed.
“Alternatively, Motorists could opt for the Premier Hotel road to link the State Secretariat and move as above.
“From Beere to Iwo-Road Motorists are advised to take the Oje-Market to link Agodi-Gate inwards Iwo-Road.
“Another alternative is for motorists to move from the State Secretariat and navigate Ikolaba via the Nigerian Customs Zonal Hq. to get to Iwo-Road, Ibadan,” he further stated.
The agency beseeched commuters to drive carefully around the affected area as its men and officers are working concertedly with relevant agencies to restore normalcy in the shortest time possible.
Coscharis Partners Sterling Bank for Vehicle Finance Scheme
By Ashemiriogwa Emmanuel
A leading auto dealership in Nigeria, Coscharis Motors, has partnered with Sterling Bank Plc to offer a vehicle finance scheme to allow retail and fleet buyers to purchase their choice vehicles through a repayment plan from the bank.
The partnership has also seen that the auto company lists its vehicles on the bank’s Non-Interest Banking Division platform- AltDrive to equally promote e-commerce transactions.
With this, customers are offered an online retail marketplace where vehicular brands sold by Coscharis Motors can be accessed and purchased either through self-funding or credit finance from Sterling Bank.
The Coscharis Group General Manager, Marketing and Corporate Communications, Mr Abiona Babarinde, while commenting on the idea, said that, “We took this strategic decision earlier in the year to collaborate with relevant stakeholder partners to be able to give our numerous discerning customers and prospects alike the soft landing of owning any of our vehicles with ease in terms of providing friendly financial schemes.”
According to him, the repayment pattern can be expanded for up to five years, of which customers can choose between 15 per cent to 30 per cent initial payment.
He said this is coupled with the bank’s friendly interest rate and ease of accessibility to a plethora of car brands to aid customers’ ultimate satisfaction.
“This ultimately gives anyone the capability to purchase any of our brands with more convenient payment terms with any of our partners like the Sterling Bank.
“We started this initiative with one of our sister companies in the group, Coscharis Mobility, representing sixth in Nigeria amongst some other financial institutions while others are in the pipeline to come on board,” Mr Babarinde added.
Ember Months: Makinde Urges Drivers to Drive Cautiously
By Modupe Gbadeyanka
Governor Seyi Makinde of Oyo State has encouraged drivers across the state to be more careful during this last quarter of the year as the vigilance of everyone means safety for all while negligence of anyone portends danger to all.
He said this at the 2021 National Workshop for Proprietors and Training for Instructors of Driving Schools organised by the Federal Road Safety Corps (FRSC).
Mr Makinde promised to consolidate the existing relationship with the agency to reduce accident indexes in the state, particularly during the ember months, noting that the partnership will ensure continuous and adequate training of drivers across the State.
The Governor, who was represented by the Chairman of the Oyo State Road Transport Management Authority (OYRTMA), Mr Akin Fagbemi, said the collaboration was necessary at such a time when there are more vehicular movements usually associated with some haste, rush and unacceptable attitude of untrained drivers.
He commended the FRSC on the ongoing Driving School Standardisation Programme (DSSP) aimed at improving driving school operations in Nigeria.
He noted that the programme has developed uniform standards, safety consciousness, professionalism and proficiency in drivers’ education in the State.
Mr Makinde extolled FRSC saying, “the great successes recorded in monitoring and regulating the driving school industry through driver training education which is evident in the reduction of road traffic crashes over the years as a result of improved driver education in recent times.”
The Governor added, “It is also very important to note here, that training of learner and professional drivers must be carried out in accordance with standards enshrined in the driving schools training manual, with all the required training facilities in place, most importantly trainees must undergo all the sessions required for the type of vehicles they intend to learn how to drive and at the end must pass the Compulsory Computer Base Test (CBT) before the National Drivers Licence is issued to them”.
“Through these efforts put in place by the FRSC, Nigeria has been recognized globally by several organizations including the United Nations and other international road safety organizations. Our National Drivers Licence is now recognized and accepted by counties across the globe,” the Governor said.
Stakeholders at the workshop included the Oyo State Commissioner of Police, Director DSS Oyo State Command, Representative of the FRSC Corps Marshal, Representatives of the Comptroller General of Customs, NSCDC among several others.
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