By Favour Nnbaugwu

An estimated N550 billion capacity within the country to assemble and manufacture vehicles is wasting away, Engr.Aminu Jalal, Director-General of National Automotive Council (NAC) has said just as the country spends over N400 billion yearly to import vehicles and spare parts.

Jalal who disclosed this in Abuja during a courtesy call on NAC by the Minister of State for Trade and Investment, Samuel Ortom, said that the country had an installed capacity to assemble and manufacture 150,000 units of vehicle at N550 billion annually but lamented that  the nation currently operates at N30 billion capacity for local assembly yearly.

NAC DG said that Nigeria could save N145 billion if all the imported vehicles were locally assembled and the local content program is vigorously pursued.

Jalal said that if the automotive industry is functioning at full capacity, it will create about 70,000 skilled and semi-skilled jobs directly with about 210,000 indirect employments.

He recalled that the auto industry in Nigeria performed well with increasing local content up to 1985 but declined from 1986 due to lack of adequate engineering infrastructure, lack of patronage of local products, low tariff (10 percent to 20percent) on imported Fully Build vehicles (FBUs) among others.

He said that for the dream of the country to come true in the manufacturing of local vehicles, the government needs to among other things increase tariffs on imported FBUs to at least 35 per cent, patronise local automotive products and assist them gain access to capital through an intervention fund.

“The experience of other developing countries such as South Africa, Egypt, Brazil, India, Malaysia, Thailand, Indonesia and China with an automotive industry shows that it requires government incentives, protection and patronage,” he said.

Speaking, the Minister of State for Trade and Investment Dr.Samuel Ortom commended NAC for its effort in the automotive industry, adding that his visit is to acquaint himself with the activities of the council.

“If this council is put to use fully, most of the challenges of unemployment in Nigeria will not be there”.