Eight years after, Nigeria's auto policy wobbles – Newstrends
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Eight years after, Nigeria’s auto policy wobbles

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Stakeholders still await auto policy’s full implementation eight years after its introduction, FEMI OWOEYE reports

Although Nigeria’s auto policy was launched almost three decades ago (1993), a development framework was not initiated until two decades after (2013); that was under President Goodluck Jonathan’s regime.

The policy and its development plan were aimed at boosting the demand for made-in-Nigeria vehicles and encouraging Original Equipment Manufacturers (OEMs) to set up local vehicle manufacturing plants. Ultimately, it was expected to revitalize and grow the Nigerian automotive sector with a multiplier effect on the nation’s economy.

No doubt, as a result of the partly implemented policy, the sector, within the last seven years has not only generated an ample of employment, it has also grown with an installed capacity to assemble about 500,000 vehicles per annum.

To this end, the industry has attracted many OEMs such as Honda, Mitsubishi, Ford, Geely, Kia, Nissan, Hyundai, Sinotruck, Shackman, Dongfeng, XCMG, Peugeot, MAN, Yutong and FAW, which have opened investment lines to Nigeria, mostly in the form of technical partnership with Nigeria entrepreneurs.

The industry also generated direct investment by indigenous brands such as Honda, Innoson, Jetvan and Proforce.

However, due to poor policy administration and failure to implement certain essential provisions of the policy, it has suffered a summersault, recording constrained capacity utilization. That is why 28 years down the line, the nation’s auto industry stakeholders are still hopelessly awaiting full implementation.

Fielding questions from this writer, Mr Luqman Mamudu, former Director of Policy and Acting Director General of the National Automotive Design and Development Council (NADDC), reiterated that poor project implementation on the part of the Federal Government had caused a setback for the nation’s auto industry.

He said, “Seven years into its 10-year tenure, there has been practically no monitoring and evaluation of the policy, apart from initial sector report in 2016/17. All the associated programmes designed to create demand for vehicles assembled in Nigeria and grow local content have been abandoned by institutions responsible to do so.”

Moreover, auto finance provision, which in the original draft of the NAIDP was meant to grant affordable loans to Nigerians to acquire locally assembled vehicles, thereby creating demand and making the secondhand imports unattractive over the years, has been jettisoned.

As if that was not enough, the Federal Ministry of Finance, by Section 38 of Finance Act 2020, further worsened the situation by reducing the protective tariff for imported fully built unit (FBU) commercial vehicles from 35 per cent to 10 per cent, while imported semi knocked down (SKD) kits remain at 10 per cent.

“As a result,” Mamudu pointed out that “Nigerian ports and streets are now flooded with all manner of used commercial vehicles and cars with consequent depletion of the nation’s foreign reserves and a weakened naira.

“Sadly, although Nigeria has established tremendous capacity utilization in the commercial vehicle body building, now you do not have to build locally, just import.”

Following the invocation of the 2020 Finance Act, it has become more profitable to simply import vehicles for sale than venturing into local assembling.

Mamudu stated further, “Automotive assembly, especially final assembly, which dominates assembly activities in Nigeria, is certainly unprofitable to the assemblers compared to outright import. The protective tariff and levies are equally vexatious to many interests, as they wish to import freely.

“So, the implementation process needs to have been carefully managed to quickly ramp up to the CKD and components manufacture, where all would be happy.

“This is why the process requires close monitoring and adjustment to align with public concern. It is because there is no reasonable feedback that those who had earlier opposed the policy in the first place seem to be having the upper hand. The Finance Act 2020 with its devastating effects is one such example. It particularly accused the policy of slow or ineffective impact and set forth to remove the protective measures without consulting stakeholders.

“The implementation of the auto policy requires sacrifice from all in the interest of growing the real sector. But such sacrifice has its limit. The protective tariff was designed to be reduced as the industry gained traction, but it’s not being nurtured to do so.”

On the state of the NAIDP bill, Mamudu, who is now the Managing Partner, Transtech Industrial Consulting, said the last information he had was that the bill was under expert review.

In his view, however, the reviewed draft of the NAIDP should be shared for stakeholders’ input, particularly the Nigeria Automotive Manufacturers Association (NAMA) before its final passage and signing into law.

Being the largest economy in Africa, Nigeria has in the past six years been under pressure from the OEMs to complete the implementation circle of its auto industry development policy. The OEMs could see Nigeria becoming an automotive manufacturing hub of the continent.

But as of the time of putting this story together, the nation’s auto policy remains under a dark silence. Even stakeholders are also in the dark.

In the meantime, while importers of used vehicles and new fully built units smile to the bank, the nation’s economy bleeds.

– Nigeria Auto Journal, December 2021

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Chery relishes impactful presence at 2024 Lagos Trade Fair, says it’s a resounding success 

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Chery relishes impactful presence at 2024 Lagos trade fair, says it’s a resounding success 

 

Days after one of the biggest trade shows in Nigeria ended, talks about the spectacular displays, special products on offer and which companies did what at the 2024 Lagos International Trade Fair are still reverberating in the business industry in and around the nation’s commercial capital.

After staging one of the most outstanding displays at the fair, Carloha, sole representative of Chery vehicles in Nigeria, has declared that the 2024 Lagos International Trade Fair was a resounding success for Chery.

The fair held from November 1 to November 10 at Tafawa Balewa Square (TBS) in Lagos was attended by businesses from various sectors.

Chery made a commanding impression with a display of its array of vehicles that captivated attendees.

Chery’s lineup at the place featuring the Tiggo 8 Pro, Tiggo 4 Pro, Tiggo 2 Pro, and Arrizo 5 — easily became the highlight of the event, drawing admiration from automotive enthusiasts and industry experts alike.

Carloha Nigeria in its assessment of the show notes that the enthusiastic response from attendees reflected Chery’s alignment with the values of Nigerian consumers: durability, efficiency and style.

Indeed, it says the presence of Chery at the fair reinforced the brand’s status as a leader in innovative and high-quality vehicles.

“Chery’s presence at the fair signals its commitment to supporting Nigeria’s automotive industry growth,” it states, adding that the brand looks forward to continuing its journey with Nigerians seeking reliable and stylish vehicles that elevate their everyday driving experience.

Chery showcased the unique strengths and aesthetics of each of its models, with the Tiggo 8 Pro taking centre stage.

Tiggo 8 Pro

Known for its luxurious design and cutting-edge technology, the Tiggo 8 Pro made a lasting impact on attendees looking for a blend of sophistication and performance in an SUV.

Auto enthusiasts and prospective buyers were particularly captivated by the model’s spacious interior, high-quality finishes, and suite of intelligent features, which align with Chery’s reputation for engineering excellence.

Tiggo 4

For those interested in compact SUVs with versatility and style, the Tiggo 4 Pro was an instant hit.

Its sleek design, fuel efficiency, and advanced safety features resonated with visitors seeking a reliable yet stylish vehicle for urban and adventurous lifestyles alike.

The Tiggo 4 Pro’s appeal lies in its balance of form and function, and this resonated with young professionals, families, and automotive aficionados who stopped by Chery’s exhibit for a closer look.

Tiggo 2 Pro

The Tiggo 2 Pro also attracted significant attention at the fair.

Known as a stylish, compact SUV with a bold, urban design, the Tiggo 2 Pro struck a chord with those looking for a vehicle that combines affordability with aesthetic appeal and performance.

Its smaller size, combined with a powerful engine, makes it an ideal choice for city driving, and visitors were impressed by its efficient fuel consumption and user-friendly tech features, making it a perfect fit for Nigeria’s dynamic city life.

Arrizo 5

Arrizo 5, Chery’s stylish sedan that combines efficiency with cutting-edge technology, was part of the impressive lineup.

Many attendees were taken aback by the Arrizo 5’s seamless integration of petrol and CNG technology.

This appeals to those looking for sustainable and budget-friendly commuting options.

The sedan’s advanced safety features, plush interiors, and fuel efficiency made it a strong contender for those prioritizing both style and sustainability in a vehicle.

This year’s Lagos International Trade Fair saw an unprecedented turnout, with thousands of visitors exploring the diverse offerings from local and international brands.

Chery’s display not only highlighted the brand’s innovative automotive designs but also underscored its commitment to Nigeria’s automotive market.

The foot traffic at the Chery stand was a testament to the brand’s growing appeal, as well as Nigeria’s evolving automotive landscape, where demand for high-quality, dependable vehicles continues to rise.

Engagement with visitors

Beyond showcasing vehicles, Chery’s team engaged with visitors to explain the unique benefits of each model and answer questions.

This helped create a personal and informative experience for everyone who stopped by.

From live demonstrations to interactive sessions, Chery provided an immersive experience that helped attendeesj job understand the full scope of features each model offers, strengthening the brand’s connection with potential customers and automotive enthusiasts.

Carloha’s Sales Director, Mr. Joseph Omokhapue, says to make Chery ownership easy and affordable, highlighted their exclusive offers: a 6-year free service plan, 6-year/200,000 km warranty, and flexible auto financing options.

“These benefits are at the core of Carloha’s commitment,” he said, adding, “With fair pricing, nationwide 24/7 parts and service support, our customers can enjoy their Chery vehicles with complete peace of mind.”

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Toyota by CFAO surprises customers with free Hilux, motorcycles, all-expense-paid trip to Seychelles

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Toyota by CFAO surprises customers with free Hilux, motorcycles, all-expense-paid trip to Seychelles

 

Buyers of brand new Toyota vehicles in Nigeria from Toyota by CFAO at this period are up for unprecedented pleasant gifts as part of the company’s end of the year package.
Toyota by CFAO, an official distributor of Toyota vehicles in Nigeria, in a statement announced the exciting end-of-year bonanza to reward both new and existing customers.

It listed the prizes on offer as free Toyota Hilux pickups, Yamaha motorcycles, and an all-expense-paid trip to Seychelles.

The promotion, it says, is open to corporate and individual clients.

It specifically states that the End-of-Year Bonanza features four main categories of rewards: Buy 5 units of the Toyota Coaster bus and receive a free Toyota Hilux pickup; or Buy 15 units of either the Toyota Hiace Mid Roof or Toyota Hilux Prerunner and get a Toyota Hilux pickup at no additional cost.

The second category is the offer of a Free Yamaha Motorcycle, in which a buyer automatically receives a Yamaha motorcycle for free on the Purchase a Toyota Hilux, running on diesel.

For the third category, the company is sponsoring an All-Expense-Paid Trip to the Seychelles for those who purchase any of the following Toyota models: Toyota Land Cruiser Prado, Toyota Land Cruiser 300, Toyota Fortuner, or Toyota Camry.

In the last category, customers will win a return ticket to the Seychelles for the Purchase a Toyota Corolla Cross or Toyota RAV4.

To participate, it says customers simply need to visit the Toyota by CFAO website at www.toyotabycfao.ng and follow the registration process.

The company says since the promotion is valid while stocks last, it advises early participation.

It says, “All the Toyota products offered as prizes are renowned models.

“The Toyota Hilux, which is known for its strength and durability, boasts advanced chassis and bodywork, making it the ultimate choice for tough tasks, with more than 50 years of proven power.”

The Toyota Hiace is a versatile vehicle with a 2.7L engine, perfect for both cargo and passenger transport in urban and rural areas; while the Toyota Coaster which is ideal for group travel, offers a spacious cabin and reliable transport for passengers with capacities of 2.7L or 4.2L.

Toyota by CFAO says the promotion, which kicked off on November 1, 2024, provides a unique opportunity for customers to drive away with top-quality Toyota vehicles and win exclusive prizes.

Managing Director of Toyota by CFAO, Mr. Boye Ajayi, stresses the company’s dedication to providing high-quality, tropicalized Toyota vehicles and superior after-sales service.

He encourages Nigerian car buyers to take advantage of the promotion as a way to acquire vehicles designed for the country’s specific needs.

“We are proud to offer Toyota vehicles built specifically for the Nigerian market. Our range includes city cars, sedans, family vehicles, SUVs, pickups, and light commercial models.

“Toyota vehicles are recognized worldwide for their safety, fuel efficiency, and cutting-edge technology, and they come with a 3-year warranty for added peace of mind,” says Ajayi.

The company says it remains committed to offering a wide selection of vehicles designed for both urban and rural environments, backed by exceptional after-sales service.

“Toyota by CFAO is dedicated to ensuring customer satisfaction and delivering high-quality products for Nigerian drivers,” it adds.

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NAJA okays December 11 for 2024 Nigeria Auto Awards 

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NAJA okays December 11 for 2024 Nigeria Auto Awards 

The Nigerian Auto Journalists Association (NAJA) has fixed December 11, 2024 for this year’s Nigeria Auto Awards holding at the renowned Oriental Hotels, Victoria Island, Lagos.

The event starting at 6pm, with invited guests coming from across the country’s automotive industry, including manufacturers, assemblers, dealers and automobile components/parts producers as well as influencers.

The NAJA Auto Awards is a key event in Nigeria’s automotive calendar, celebrating the best vehicles, innovations, and industry figures that have shaped the current year.

The award event will honour exceptional achievements in design, technology, sustainability, and overall impact in the sector.

In a statement, NAJA highlighted that the awards are the result of months of thorough planning and collaboration with industry experts, ensuring the event remains a credible platform for recognizing leaders in Nigeria’s fast-evolving automotive landscape.

Chairman of the 2024 Auto Awards Committee, Theodore Opara, emphasized that the timing of this year’s ceremony is especially significant as the industry is experiencing a rapid transformation, particularly in the areas of electric vehicles (EVs), compressed natural gas (CNG)-powered vehicles, and eco-friendly vehicle technology.

“We’re incredibly excited to gather Nigeria’s top automotive minds and brands on December 11 to recognize the vehicles and individuals who have truly made an impact,” Opara said.

“This year’s awards will reflect the shifting dynamics of the industry, particularly with the growing importance of electric and sustainable mobility solutions. Our aim is to shine a spotlight on the innovations that are driving Nigeria’s automotive sector into the future.”

The NAJA Auto Awards will feature a variety of competitive categories, such as Car of the Year, Truck of the Year, Best New Electric Vehicle, Luxury Brand of the Year, and Best Auto Tech Innovation.

Other categories will recognize standout achievements in vehicle design, safety, and sustainability.

Opara also pointed out that the selection process for the awards would be rigorous, with a panel of expert judges, including NAJA’s network of experienced automotive journalists, evaluating each nominee across several criteria, such as performance, innovation, environmental impact, and technological advancement.

Mike Ochonma, Chairman of NAJA, emphasized the dramatic shifts occurring within the industry.

“The automotive world is changing at an unprecedented pace. From the rise of electric powertrains to CNG-powered vehicles, the 2024 awards will highlight the most forward-thinking products that are leading the change in shaping the future of mobility in Nigeria,” said Ochonma.

“We’re committed to ensuring that the awards recognize the true pioneers—those companies and vehicles pushing boundaries and setting new benchmarks.”

The event promises to be an evening of celebration, with special presentations and a showcase of some of the most notable nominees.

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