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By Bimbola Oyesola
With 35 companies reported to have been granted licenses to assemble vehicles in the National Automotive Industry Development Plan (NAIDP), Motormechs and Technicians Association of Nigeria (MOMTAN), at the weekend in Lagos, said it was already positioning members to take advantage of the policy.
To boost the domestic automotive industries, the Nigerian government introduced the NAIDP in 2013.
Announcing the association’s partnership with Lawmaco Interbiz Limited, the marketers of Hardex fully synthetic engine oil, MOMTAN national president, Oseni Suleiman, said the association has decided to take the bull by the horns by entering into a partnership with competent automotive oil and filters manufacturers and marketers.
“New car assembly is still relatively small, accounting for 15% of car sales in 2015, but with government policy to promote domestic assembly, and with licenses being granted, the trade should soon start to expand rapidly, meaning parts and lubricants will be needed.
“With the commitment to develop the domestic car production market, the long- term forecast is that 70% of new cars sold will be manufactured or assembled in Nigeria by 2050,” he said.
He stated further that if fully implemented, the auto sector could generate 70,000 direct jobs, and 210,000 indirect jobs, as against the current automotive industry workforce of under 3,000 workers.
He expressed that members as well as the association would benefit immensely from the partnership as the company has promised to support with some of their needs, like training, light tools, uniform, renovation of their Secretariats etc. to the best of their ability, provided MOMTAN keep to its own side of the partnership agreement, which is maximum patronage of their products.
He noted that Nigeria has the potential to be the fastest growing large African economy, with a projected annual GDP growth rate Of 4.2% in the period 2016 – 2050, adding that this will push it up the GDP ranking to become the 14th largest economy in the world by 2050, as projected by the IMF and PWC.
“The population, currently around 189 million, is expected to double over the next 30 years, at a population growth rate averaging around 2.3% a year. For what has been a young country, Nigeria is now entering period of strong growth in the working age population.
I am not talking about rice and beans but I am talking about industrial development,” he said.
He added that economists believe that by diversifying from the oil sector, Nigeria is set to see growth in a large consumer market, with service sectors such as logistics recording significant advances.
Suleiman said the industrial growth would lead to the development of infrastructure and transport networks, which will inadvertently boost Nigeria’s manufacturing industries, with genuine consideration for good lubricants (Engine oils).
He stated, “Nigeria’s growing economy also means that the middle- income, middle class sector is set to expand beyond 40 million, and consumers will increasingly want their own vehicles increasing the demand for automotive maintenance and repair services. BMI projects that new vehicle sales will grow 2.8% in Nigeria from 2018, provided there is insistence on genuine lubricants/ filters.”
