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21 automakers to set up assembly plants in Nigeria

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LAGOS-A total of 21 automobile dealerships in Nigeria have made commitments with some foreign technical partners to set up assembly operations in the country since the announcement of the new automotive policy last year.

This move, industry watchers say, will boost local automobile assembly and discourage influx of grey and parallel imports into the country.

The progress report made available to BusinessDay by the National Automotive Council (NAC) on the implementation of the new policy revealed that 21 companies have so far signed commitments with technical partners to set up assembly operations with product lines as follows: cars and Sport Utility Vehicles (SUVs) 5, pick-up trucks 4, mini-buses 6, buses 4, and trucks 8.

As at the time of filing this report, the current status of implementation indicates that all of the parties have obtained land or factories for assembly operations.

Also, while all the companies except two have completed their feasibility studies, two of them have started building their factories. There are very strong indications that three will start assembly operations before the end of the year, while six have started already.

According to NAC, the existing assembly plants, such as Peugeot Automobiles of Nigeria (PAN), Innoson Vehicle Manufacturers and VON Nigeria, have new leases of life. While PAN resumed assembly of Peugeot cars last July, VON is assembling Nissan and Hyundai vehicles, and reliable sources say Innoson will start assembling cars this month.

On the other hand, Dana Motors has signed technical partnership agreements with Kia and Renault. The company is converting a warehouse in Isolo, Lagos, to serve as a semi-knocked-down (SKD) assembly plant. Assembly is expected to kick off this month.

Haulage transport businesses will receive a boost under Transit Support Services Limited, with the assembly of road tractors, lorries and dump trucks, trailer bodies and tankers. Transit Support Services, a company owned by ABC Transport, recently signed an agreement with Original Equipment Manufacturers (OEMs).

Another company that has entered into discussions and feasibility studies to convert a former textile industry in Isolo to an SKD assembly plant is the Kewalram Chanrai Group.

Also, Coscharis Motors recently acquired several acres of land at Lekki, Lagos, for the building of Joylong brand of cars and mini-buses, with feasibility studies ongoing.

In terms of local content development and assembly plants, existing manufacturers under the aegis of the Automobile Local Content Manufacturers of Nigeria (ALCMAN) are being supported to serve assemblers.

Whereas capacity for certain low-tech components like seats, windscreens and chemicals already exists, a quality and technical audit of local component manufacturers has commenced. The audit will provide the information needed to coordinate quality control systems to ensure that they meet the standards required by the assembly plants.

BusinessDay reliably gathered that NAC will be organising a business-to-business meeting between South African and Japanese automotive component manufacturers in October and November 2014, respectively. Other matchmaking opportunities with component manufacturers in India, Pakistan and Morocco are also being explored.

As more assembly plants move to CKD operations, opportunities for local content incorporation also increase proportionately. Once local capacity is ascertained for the manufacture of components, such components will be removed from the SKD/CKD kits. Jobs to be created will be proportional to the extent of assembly operations and local content incorporation

BUSINESSDAY-

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Motoring

FCTA Pulls Plugs On Taxi Rank, Terminal Services Contracts

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The Federal Capital Territory Administration (FCTA) has ended contracts with taxi rank and terminal operators due to their failure to meet engagement terms and conditions.

Mr. Ubokutom Nyah, the Mandate Secretary of the Transportation Secretariat, FCTA, made this announcement during a meeting with managers of these terminals and taxi ranks in Abuja.

Nyah clarified that due to the operators’ failure to fulfill their engagement terms, the FCTA had to terminate their contracts.

He instructed them to transfer control of the ranks to the Administration within three months, starting from Nov. 21.

He lamented the presence of unauthorized motor parks in the city and assured the readiness of the Administration to establish proper taxi ranks and terminals in the capital.

He revealed that personally visiting the city’s taxi ranks, terminals, and unauthorized motor parks gave him direct insight into the poor condition of these facilities.

He emphasized that as the federal capital city, Abuja deserves better, highlighting that the poor condition of these facilities attracts various criminal elements.

He said “We must rid Abuja of all these. I have gone round the taxi ranks, and of all the places I visited, not one is worthy to be called even a village motor park.”

The Mandate Secretary stressed that the intention wasn’t punitive; rather, it aimed to revamp the sector, introduce new engagement terms, and modernize taxi ranks and terminals in the federal capital.

He also highlighted the plan to increase the number of terminals and ranks where necessary, which would positively impact the administration’s revenue.

He emphasized that this measure was part of a broader effort to eliminate illegal motor parks in Abuja and curb the associated criminal activities.

In response, Mr. Adebisi Lawal, the Operator of Jahi Taxi Rank, praised the administration’s initiative to modernize the taxi ranks and terminals.

Lawal urged the administration to prioritize current operators’ involvement in the selection of new developers for the modernization of the taxi ranks and terminals.

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Power Show Sees Soldiers Batter LASTMA Officer

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It was a show of power at the Ojota area of Lagos on Monday as soldiers pummeled an officer of the Lagos State Traffic Management Authority, (LASTMA).

Eyewitness accounts claim that the ugly scene played out around 8am, and saw about eight soldiers pounce on the yet to identified LASTMA official, while his colleagues took to their heels.

The video of the melodrama has gone viral, where the LASTMA official was appealing to the soldiers, who appeared bent on ‘teaching him a lesson’.

This onslaught comes on the back of a reported assault of a soldier at the same location by LASTMA officials last week.

It would appear that what played out today was the army asserting its authority and defending their khaki as the armed soldiers carried out what looked like a revenge mission.

Eyewitnesses further averred that the victim was rushed to a nearby hospital, after the soldiers left the scene.

It was gathered that the authorities at LASTMA has reported the incident to the military authorities who are said to be looking into the matter.

Meanwhile many members of the public are rejoicing that the soldiers have taught the crude LASTMA official that power is stronger than power, for all their atrocities against motorists on Lagos roads.

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Intra-City Fares Skyrocket By 98% Month-On-Month – NBS

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Kogi, Ogun, Cross River Propel Mining Sector’s 17.95% Growth – NBS

The impact of the removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, has seen the pump prices of the product skyrocket with a corresponding increase in the cost commercial transportation in Nigeria.

According to the National Bureau of Statistics (NBS), intra-city bus transportation fares across Nigerian cities, measured between May and June 2023, increased from N649.59 to N1,285.41 in June 2023.

This translates to 98 percent growth or N635.82 within the month in view.

The NBS made the data available in its Transport Fare Watch report for June 2023.

In the report, the NBS also shared the breakdown of bus journeys within the cities per drop for constant routes; bus journey intercity (state route); charges per person, amongst others.

On a year-on-year basis, the report has it that bus fares rose by 120.63 percent from N582.61 paid by commuters in June 2022.

The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 percent, month-on-month.

The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023.

On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.

“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023.

“On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”

Biztellers reported that the twin forces of forex pressure and increasing price of Brent in the global market would likely see the pump prices of petrol, increased again in no distant time in Nigeria.

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