Nigerians must have been heartened a few weeks ago when Lagos State Governor Babajide Sanwo-Olu delivered the 2,000th car from the assembly plant of Chinese car manufacturer GAC Motors.
But President Bola Tinubu needs to start a dialogue with local talent like Dr. Jelani Aliyu, former executive director of the National Automotive Design and Development Council and former car designer for US car giant General Motors.
Even though digital technology is redefining the world’s economy into what is being called the “new economy,” every modern economy still requires brick-and-mortar stores.
Of course, the president should also consult with foreign automakers about establishing new auto plants, expanding existing factories, and reviving dormant auto assembly plants.
Former President Goodluck Jonathan invested NOK 1 billion to rebuild Nigeria’s auto industry, but no one knows how the still-mysterious funds were spent.
In 2014, NADDC reportedly issued 40 licenses to car companies, but production remains far short of the 400,000 cars that the Nigerian car market can absorb annually. There are only 37 companies.
Government must bring together automotive economists, engineers and consultants to urgently find radical ways to reduce the cost of manufacturing or assembling vehicles in Nigeria and increase vehicle sales revenues beyond the current meager N400m. yeah.
If successfully implemented, this will put the idle Ajaokuta Steel Works in Kogi State to good use, increase gross domestic product and create new Many jobs will be created and taxes will be paid to the people. Government Treasury.
The sophisticated automobile industry and its extensive credit system contributed greatly to the development and stability of the American economy. It provided jobs and increased America’s GDP and government tax revenue. Currently, the automobile industry accounts for his 3% of America’s GDP.
The importance of the auto industry is perhaps underlined by President Joe Biden’s participation in the United Auto Workers union strike against automakers that pay a minimum wage and benefits that are second only to peanuts.
This may have triggered former President Barack Obama’s “too big to fail” idea several years ago to guarantee the loans needed to avoid the collapse of the American auto industry.
Remember that former US President Jimmy Carter also came to the rescue of Chrysler Motors in the late 1970s, saving American jobs as it became the lifeblood of the US economy.
Given that almost all automobiles contain metals, iron, aluminum, brass, zinc, plastics, rubber, textiles, glass, and paints, the range of ancillary industries in the automobile manufacturing sector and road construction industry was $39.49. I can only imagine. 1 billion which is his 9% of Nigeria’s GDP in 2022.
In 2022, the automobile industry accounted for 7.78% of China’s GDP. The country exported 2.12 million cars, making it the third-largest car exporter after Japan, which exported 3.82 million cars, and Germany, which exported 2.3 million cars.
This suggests that Nigeria’s automotive industry, if properly structured and managed, has the potential to generate significant export revenues for at least the West African region, if not the entire world. There is. His 60 percent of the region’s GDP comes from Nigeria.
By the way, the mindset needed for the government to get ahead in this car game is a startup spirit, a pioneering spirit with a willingness to start fresh and take risks.
As far as possible, each political zone in Nigeria should have at least two automobile assembly or manufacturing plants and manufacturing plants for component parts such as engine blocks, parts and accessories.
And of course, Elizades, RT Briscos and other major car dealerships in Nigeria should also be part of this loop to ensure that our people have easy access to products at affordable prices.
The factory will then need to be located close to the main raw materials, manufacturers of accessories, institutions that train relevant personnel (such as the Lekki-based Nord Automobile Manufacturer, which has a showroom on the University of Lagos campus), and sources of energy.
Now that lithium is available in large quantities in Nigeria, it would be easy to convince Elon Musk to assemble (at least) his Tesla electric cars there. It’s not that difficult to achieve.
Solid Minerals Minister Dele Arake is expected to board the next available flight for a final meeting with Mr Musk. He will also be preparing work to prepare the lithium mine for optimal performance.
The Minister of Industry, Trade and Investment should also accompany Mr Arake on his visit. And we need a timeline for electric car factories to roll out vehicles before the end of this government’s first four years in office.
The federal government must move quickly to develop lithium because lithium is the future of cars, batteries, and the global economy, and fossil fuels are in decline because they accelerate global warming and have dangerous impacts on the planet and its people. be.
Some experts even whisper that lithium, like gas, could essentially produce fuel to power power plants. If Alake can see this, there is no need to advise him to zoom in that direction.
As governments move forward with electric vehicle initiatives, they need to find ways to accommodate compressed natural gas options as well. After all, Nigeria is primarily a natural gas producer rather than an oil producer.
Automotive development teams need to provide a roadmap to convert Nigerian cars to be CNG compliant in the short term. One way he does this is by converting some of the moribund assembly plants into conversion centers.
The government will (necessarily) need to collaborate with more experienced global car manufacturers and the domestic university system to combine available car manufacturing experience (from the West and Asia) with appropriate local skills within Nigeria. be.
There are reports of a young man (in northeastern Nigeria) who was able to assemble a battery-powered car. Jelani Aliyu should engage with him and not just pat him on the head without making any commitment to utilizing his skills and talents.
Nigeria’s policies need to recognize that every economy grows through a series of deliberate decisions that generate economic activity. Theorists who think that the economy is driven by an invisible hand created by Adam Smith have no idea how the economy actually works.
We need to help the laws of supply and demand work. You may not realize that Maynard Keynes’s idea that paying one group of lazy people to dig a hole and paying another group to fill it directly increases the economy’s gross domestic product. yeah.
This is the rationale behind periodic urban renewal policies in many Western countries. In other words, starting an urban renewal policy will revitalize all sub-sectors of the construction industry.
Apart from the obvious infrastructure and development benefits to the population, the economy benefits from lower unemployment, sales of all categories of construction materials, and government tax revenues.
Products from the auto industry that don’t become obsolete soon can boost the economy.
- X (old Twitter): @lekansote1