PwC: Nigeria can be Africa’s car manufacturing centre

Nigeria has the potential to become the hub of Africa's automotive industry. According to a report by PricewaterhouseCoopers (PwC) the automotive industry in Nigeria may have a future.

The PwC experts believe that Nigeria’s 2013 policy to revive the automotive industry through the National Automotive Industry Development Plan (NAIDP) may work well. The policy, which aims to discourage vehicle importation and encourage local production, has attracted a number of top automotive brands into the country with three already commencing assembly in the country as at 2015.

Some thirty other brands have signed commitments with technical partners and have already obtained licenses to assemble cars, trucks and buses in Nigeria.

Proshare, a Nigerian financial information, intelligence and analyst services firm, reports that Nigeria’s National Automotive Design and Development Council (NADDC) estimates annual imports at about 400,000 vehicles (100,000 new and 300,000 used).

The report mentions some challenges. There is a gap in the area of repair, that will require capacity building, training of skilled labour and adequate supply of spare parts. The supply of equipment to domestic assemblers, supply of spare parts and the setting up of local component manufacturing plants is another challenge.

Further reading on proshareng.com

Image by satanoid from Austin, TX, USA, via Wikimedia Commons

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