PWC says Nigeria will be producing nothing less than four million cars by 2050. Read the report to find out factors outlined to make such projections feasible!
According to predictions by PricewaterhouseCoopers, Nigeria’s auto industry will be producing up to four million cars every year by 2050. This is on the premise of the country’s growth projections expected to rise – making Nigeria the ninth largest economy on the world map. The Nigerian automotive industry has the capacity to manufacture cars with resources sourced within the country.
A PWC partner, Mr. Andrew Nevin, presented a report that outlined the projected growth. According to the report, the expected growth can only be feasible in the presence of effective and consistent investments in the industry. And these can only yield sufficient results when championed by the Nigerian government. This will be done by the government’s creation and implementation of policies that are favorable to the socio-economic, political and legal environments of the country, so that such investments will thrive.
PWC believes in the fast-paced development of Nigerian auto industry
Speaking at an event put together by a group of the Lagos Chambers of Commerce and Industry (LCCI), Nevi noted that they made provision for three scenarios on the subject in line with the rate of growth and the support of the government. When these are in place, Nigeria will have the capacity to produce up to seven million vehicles by 2050.
He noted that the estimated number may seem outrageous. But when compared to the projected population of Nigeria by 2050, which could be higher than that of the United States of America, it’s feasible. The US currently produces eighteen million vehicles. With Nigerian having the ninth largest economy by 2050, it can have its own indigenous car manufacturing industry that will handle large numbers.
The predicted number of cars produced by 2050 is considered "feasible"
The fate of Tokunbo cars
Going by their report, the days of imported vehicles popularly known as Tokunbo are numbered in Nigeria. By 2034, Tokunbo cars are most likely to be non-existent as a result of local car production that will be ongoing. While they have faith in this projection, they also created a pessimistic projection considering the fact that things may not turn out as planned. In the worst-case scenario, which is their third projection, Nigeria will be manufacturing a total number of two million vehicles. Basically, PWC is optimistic, that come 2050, we will have a country that produces not less than four million cars per year. In addition to this, the numerous importations of cars will also stop because we will be producing our own cars locally.
Nevi also pointed out that, for the country to truly become the car production destination in Africa, car ownership has to be simplified and made available to the people with various affordable options. There has to be a number of financing options for people to acquire locally produced cars. He stated that, according to research, 63% of Nigerians cannot independently own a car without getting some sort of support. With such a high number of people depending on others to own cars, there are many Nigerians who are not mobile. Nigeria must also tighten its borders when it comes to car importation. He revealed that, besides food, cars are the mot smuggled products in the Lagos – Seme border.
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Consumers must also be protected in all of this. As Original Equipment Manufacturers (OEMs) begin to assemble their products in the country, they must ensure that they adhere to the same high standards obtainable in developed countries. Cutting corners will result to substandard products being made available to the consumers.
Not just Innoson, more Nigerian car brands would go continental!
Nigeria cannot expressly begin to produce seven million cars own her own. There’s the need to collaborate with experts in the business – people who understand how the auto industry works. Combining expert knowledge with favorable government policies, PWC says Nigeria will be producing between 4 – 7 million cars by 2050.
Job creation opportunities
The LCCI president Alhaji Remi Bello acknowledged the huge potential of the Nigerian auto industry, describing it as “very strong.” Making reference to data provided by the National Automotive Council (NAC), he stated that the industry has the capacity of creating 70,000 jobs including both skilled and semi-skilled ones, in addition to indirect jobs of 210,000.
The report also disclosed that up to 490,000 jobs would be created in the area of raw material supply. Expectedly, an active automobile industry will boost the economy and foster development. However, a big challenge to these benefits is Nigeria’s huge dependency on imported vehicles.
For more information about Nigeria’s automobile industry, visit Naijauto.com.