52 vehicle assembly plants closed

  • … A $1 billion investment in jeopardythere

JThere are growing concerns in the auto industry as most federally approved assembly plants have closed, leaving only a handful in operation, it has been observed.

Daily Trust The results revealed that as many as 58 assembly plants were approved by the federal government through the National Automotive Design and Development Council (NADDC) in 2015 to assemble knock-down vehicles (SKDs) for deployment on Nigerian roads.

At present, however, only about six of the assembly plants are active, as disclosed by industry player and CFAO Motors Deputy Managing Director, Mr. Kunle Jaiyesinmi.

Jaiyesinmi spoke in Lagos at the 7th Edition of the Nigeria Auto Journalists Association (NAJA) Training/Capacity Building Workshop on the theme: “Accelerating the Auto Industry Revival Strategy in the Era post-COVID-19”.

Jaiyesinmi, who is also the chairman of the Auto & Allied sub-group of the Lagos Chamber of Commerce and Industry (LCCI), said President Muhammadu Buhari’s decision to withhold assent to the Lagos National Development Plan he auto industry (NAIDP bill) passed under President Goodluck Jonathan was a setback for the industry.

Daily Trust reports that various automotive assemblers have invested more than $1 billion in assembly plants according to the NADDC.

However, many assembly plants have been closed, according to the CFAO boss.

To keep employees, he revealed that CFAO had since converted its assembly plant workers into after-sales staff.

He said: “When the National Automotive Design and Development Council (NADDC) came up with the policy, we had it in phases; which starts with semi reversed, SKD1 SKD2 and SKD3. It was expected that after 5 years we would have migrated to CKD (Complete Knocked Down). In 2014, we should have been in CKD but we are still in SKD in 2022.

“We are still in SKD because it is impossible to talk about CKD without the steel industry working and other ancillary products being shut down.

Other challenges he highlighted include non-availability of foreign currency to bring in machinery from suppliers, frequent upgrading of values ​​of imported vehicles by the Nigerian Customs Service (NCS), delay in customs clearance containers in various ports in Nigeria, among others.

“It is now more profitable to bring in fully built units (FBUs) than to assemble them, and that is why fewer than six assembly plants are currently in operation,” he said.

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