Nigerian Auto Industry On Endangered Species List

Frank Williams
by Frank Williams

Nigeria's automotive industry is facing extinction. After the demise of Steyr and Volkswagen Nigeria Limited, about all that's left is the Peugeot Automobile Nigeria Limited (PAN). Starting with three shifts producing 240 cars per day, PAN now has only one shift producing 22 cars per day. places the blame on a number of factors: prices beyond the reach of most Nigerians, high production costs, "inadequate patronage of locally-assembled automobiles" and substandard performance by suppliers. PAN's chairman Alhaji Sani Dauda contacted Nigerian president Umaru Yar'Adua asking the government for help. The president "assured them that he would intervene in the sector, stressing that the automobile industry the world over enjoys the support of government." Nigerian auto industry experts feel unless the government steps in, "the nation's automobile industry would lapse into oblivion with all its attendant implications" such as layoffs of thousands of workers, and "the country's automobile market risks being consigned to the whims and caprices of non-Nigerian vehicle importers." They want the government to take several actions, including lowering the customs duties on knocked down vehicles intended for assembly in the country to one percent while raising the duties on completely assembled cars to fifty percent. Good luck with that.

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  • Cicero Cicero on Sep 24, 2007

    At one shift producing 22 cars a day, the Nigerians could supply the entire U.S. market for Buicks right when the UAW's getting ready to walk. Then again, when GM starts negotiating with the Nigerians, you just know that Wagoner's going to get shellacked. I can just see him flying off to Lagos with $5B in GM cash in his suitcase, ready to pay "government transfer taxes" to get the deal done.