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23 automakers establish assembly plants in Nigeria

By on November 10, 2014

At least 23 automakers have signified interest to set up assembly plants in Nigeria, the Director-General of the National Automotive Council, Mr. Aminu Jalal, has said.

He said this at the fifth Conference of the Haulage and Logistics Magazine organised by the Intelligent Data Company in Lagos.

Jalal was represented at the conference, which had as its theme, ‘The opportunities and challenges of the haulage and logistics industry in Nigeria,’ by the Assistant Director, NAC, Chika Nwokoye.

He said, “Of the 23 companies that have signified commitments with their technical partners to set up assembly operations in Nigeria, six of them are interested in car and sport utility vehicles; five are interested in minibuses, five in pickup trucks and eight in the assembling trucks.

“These eight companies will be in addition to the existing National Truck Manufacturer in Kano. One of them has started assembly operations; two would start before the end of the year, while the rest will begin early next year.”

The DG added that five of the eight truck assembly plants would be located in Lagos.

Jalal said, “The assembly plants are Aston Motors located on the Lagos/Badagry Expressway, which will produce the Aston brand of trucks; Pasco Nigeria Limited located on Oyo Road, opposite Ojo Market in Ibadan, which will produce JVC trucks; Nigeria Sino trucks Limited located at Surulere, Lagos which will produce Sino trucks; SCOA Nigeria Plc on Apapa/Oshodi Expressway, Isolo, which will produce MAN Diesel trucks; Tata Nigeria Limited, Lagos, which will produce Tata range of trucks; Trans Limited, in partnership with Leventis Motors, a division of AG Leventis , which will produce Volkswagen, Foton and Acer trucks; while Transit Support Services at Amuwo Odofin, Lagos, will produce Chapman trucks.”

Jalal described logistics as an important aspect of the automotive industry as it played a big role in modern assembly operations.

He said, “As we develop our industry too, the logistics industry will also develop correspondingly and that is why we are very much interested in your affairs. The automotive development will therefore be good news to the logistics industry.

“The policy will provide affordable vehicles backed up with after-sales service by the manufacturers. It is always better to have good support services; otherwise you might not be able to achieve your goals if the vehicles are not properly maintained.”

The Managing Director, Intelligent Data Company, Mr. Alfred Okugbeni, in his welcome address, said there was a need to encourage professionalism in the haulage sector.

He said, “We have to ensure excellence in the supply chain management. Nigeria has always ranked low in the supply chain business. It was because of this that we established the Haulage and Logistics magazine so as to exchange.”

The Chairman of JOZA Global Logistics, Mr. Emmanuel Usiakpor, called on NAC and the truck assembly plants to take note of the challenges confronting the haulage sector.

He said, “Getting Nigerian banks to finance loans at a single digit interest is a problem; many haulage companies have gone down as a result. When you buy trucks with loans from Nigerian banks, you discover in the long run that you are buying the trucks at double the price because of high interest rates.

“We were previously dependent on foreign financing which was on a single digit. As it is now, you cannot ask foreign institutions to finance the purchase of cars assembled in Nigeria.”

He also lamented the practice by insurance companies in limiting their coverage only to states that they found relatively secure.

He said, “In this business, we often welcome long distance trips because the freight charges are higher. Today, the North-East is out of it. Insurance companies are now giving clauses, saying if the trucks go to volatile or war-torn areas, they would not pay should there be any damage.”

 

[Punch]