30 Vehicle Plants To Start Operation In Nigeria Soon–FG

The Federal Government has concluded plans to ensure that 30 vehicle assembly plants to commence operations in Nigeria very soon.

This was revealed in Abuja to the News Agency of Nigeria, NAN, on Tuesday by the Director, Policy and Planning, of the National Automotive Council, Lukman Mahmud.

Mahmud noted that, “plans are in top gear to revive the auto glass company in Ibadan, car seat company at Kaduna, Nocaco Auto Wires, exhaust pipes and many more parts and consumable producers in the country.”

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He further said the government was working toward facilitating the production of vehicle components at competitive prices through the Nigerian automotive industry and to create employment opportunities.

“The protection and incentives provided to the industry under the new policy persuaded 16 companies to establish assembly plants,” Mahmud stated. He added that the motor assembling companies would come in with complete and semi-knock-down vehicles.

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He explained that the idea of Semi-Knock-Down and Complete Knock-Down import was to address the demand from the automobile market due to eventual hike on tariff and levy of imported fairly used cars.

According to him, Peugeot Automobile Nigeria, Leyland, Fiat, Volkswagen and Mercedes were the complete Knock-down assembling plants that were forced to shut down due to the influx of imported cars or and second hand vehicles otherwise known as ‘Tokunbo.’

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He noted that under the credit purchase scheme, middle class Nigerians would buy cars at affordable prices and pay back within 36 to 46 months and at single digit interest, while adding that government was working out modalities with all stakeholders in the sector to curtail smuggling of second hand vehicles into the country.

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