Why 63% of Nigerians may not be able to own cars– Expert

In order for Nigeria to be a hub for automotive industry in Africa, Mr. Rotimi Raimi, General Manager, Kaduna Inland Container Depot (ICD) has advised that the government to improve the chances of owning a car for Nigerians by making finance available for buyers.

He added that automotive industry be set up close to the port to reduce the varuiable cost of transport the component parts of the cars to the final destination where they would be assembled.

Mr Raimi gave the advice at the maiden edition of Nigerian Auto-Marine Conference/Fair held in Lagos, Thursday while speaking on the topic: Role of Terminal Operators in Automotive Industry.

The GM while speaking, stressed that a research result has shown that 63% of Nigerians cannot own cars without support as most of them rely on current earnings of the people.

Raimi said, “In order for Nigeria to become African automotive hub, two areas need to be addressed. Improve chances of owning a car, available vehicle financing option is very important to encourage local assemblage of cars

“Research shows that 63%of Nigerians cannot own a car without a form of support and unfortunately, consumer lending in Nigeria is low and rely on consumer employment status and current earning.

Therefore banks and other financial institutions need to play a more proactive part in providing finance and improving demand for locally assembled cars.

“Establishment of automotive industry nearer to the port is advisable. It is good to establish automotive industry nearer to a port or terminal where cost of production will be drastically reduced in terms of handling and delivery of components parts.

Giving the analysis, Kaduna ICD boss said that if an automotive industry so located in Nasarawa, the cost of transporting the Completely Knocked Down parts imported through the cost would be added to the market price of the car.

According to him, if an industry is cited in Mowe, along Ibadan Road, the cost of moving the goods to the location would not be as much as that of Nasarawa.

He also called on the government to collaborate with the Standard Organisation of Nigeria (SON) for effective regulation of standards to avoid assembling cars that will not be durable or liable to be involved in accidents.

“Government needs to collaborate with the Standard Organisation of Nigeria to have a vehicle safety standard and establishment of the industries because there must be many safety standards to comply with,” he said.