Auto Industry Options for developing the Nigerian automotive industry
The Nigerian automotive industry has its origins in the 1970’ s when the federal government entered into Joint Venture Agreements with a number of foreign automotive manufacturing firms to set up six assembly plants. More than 40 years on, the Nigerian auto industry is still very much in its infancy due to a wide range of challenges that has beset the industry, resulting in its decline. Indeed, the only car manufacturing that is currently being carried out locally in Nigeria is Semi-Knocked-Down( SKD) assembly; and this is led by three companies: Volkswagen of Nigeria( VON), Peugeot Automobile Nigeria( PAN) and INNOSON. Successive governments have recognised the strategic importance of the Nigerian auto industry and its great potential in terms of job creation, contributions to foreign exchange earnings / savings, technology acquisition and skills development. For these reasons, the auto industry was seen as a key strategic driver for industrialisation, and an important component of the Nigeria Industrial Revolution Plan( NIRP) which was launched in 2014.
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