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Nigeria’s New Auto Policy Drops import By 20% - Car Talk (2) - Nairaland

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Re: Nigeria’s New Auto Policy Drops import By 20% by destante(f): 1:19pm On Oct 20, 2014
this is one good policy I like for its purpose as an alternative to local revenue generation. About 30% of South Africa's revenue lies in their automotive industry. It will have a multiplier effect for us here if faithfully implemented to the letter.
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:21pm On Oct 20, 2014
atlwireles:


Why not name the government responsible for the major setback. Yes, tell people Buhari was responsible, with his import license /currency restriction policies. That was the beginning of our manufacturing malaise. 18 months of his closed border and one man show, caused so much damaged it took almost 30 years to fix
Closed borders affected manufacturing? Interesting. I thought gej's policy is to reduce importation? Please lets stay on the topic
Re: Nigeria’s New Auto Policy Drops import By 20% by atlwireles: 1:23pm On Oct 20, 2014
Obiagelli:

Closed borders affected manufacturing? Interesting. I thought gej's policy is to reduce importation? Please lets stay on the topic

You are better off, sticking with what you know. When, I need to talk about fashion, I will ask your opinion.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 1:25pm On Oct 20, 2014
Obiagelli:


Thanks for your insights naptu2, but my question is how does this policy ensure we aint going the VON way? These policy gives almost zero import duty to assembly plants/companies (except i am wrong), how will this encourage them to buy locally?
How do we ensure technology transfer?

Is not enough to say they will employ nigerians, many Nigerians have lost their jobs to these policy already. There are many unanswered questions.

True, that's why I mentioned that the 1970s/80s policy failed because it wasn't followed through. Certain things are needed to make it succeed.

1) Demand: The military government decreed in the 1970s that government ministries, departments and agencies should only purchase made in Nigeria cars, but successive governments did not comply with this law. PAN was furious when the Federal Government entered into an agreement with Coscharis to import BMW cars for the All Africa Games. In fact, the first set of people that usually violate this policy are usually top government functionaries, so I'd like to see the President, Vice President, Senate President, etc use made in Nigeria cars as their official cars.

2) A local content policy will definitely be necessary at some point. There were many local companies that supplied parts to PAN, these and similar companies would need to be encouraged the same way that the auto companies were encouraged.

3) Infrastructure: This is key. People often talk about power when they talk about the auto policy, but it's not just about power. Would companies like PAN be forced to move their cars across country on articulated trucks? This is where the rehabilitation of the railways comes in. I would also like to see rail links to other West African countries (particularly the landlocked countries), so that it would be easier to export.

4) And most importantly, we need to train our manpower to take up the opportunities that would be created by this policy.

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Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 1:29pm On Oct 20, 2014
atlwireles:


Why not name the government responsible for the major setback. Yes, tell people Buhari was responsible, with his import license /currency restriction policies. That was the beginning of our manufacturing malaise. 18 months of his closed border and one man show, caused so much damaged it took almost 30 years to fix

How could it have been solely Buhari's government, which was in power for only 20 months, that was responsible for the setback? Was it Buhari that gave contracts to Coscharis to import BMWs for the All Africa Games 2003, rather than PAN? Was it Buhari that imported Volvos for the 1973 All Africa Games? Was it Buhari that instituted SAP? Get real.

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Re: Nigeria’s New Auto Policy Drops import By 20% by atlwireles: 1:35pm On Oct 20, 2014
naptu2:


How could it have been solely Buhari's government, which was in power for only 20 months, that was responsible for the setback? Was it Buhari that gave contracts to[b] Coscharis to import BMWs for the All Africa Games 2003, rather than PAN?[/b] Was it Buhari that imported Volvos for the 1973 All Africa Games? Was it Buhari that instituted SAP? Get real.

How many assembly plants were in Nigeria in 1973? I don't know myself, any help will be appreciated.

By 2003, please truthfully tell us the, the physical and technical situation of PAN. Was Pan even doing any assemble or just importing cars, that were resold?

Also before SAP was instituted in 1986 by IBB, the damage was done already in many manufacturing facilities. They were so behind on payments, no international supplier wanted to touch any Nigeria business.
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:36pm On Oct 20, 2014
naptu2:


True, that's why I mentioned that the 1970s/80s policy failed because it wasn't followed through. Certain things are needed to make it succeed.

1) Demand: The military government decreed in the 1970s that government ministries, departments and agencies should only purchase made in Nigeria cars, but successive governments did not comply with this law. PAN was furious when the Federal Government entered into an agreement with Coscharis to import BMW cars for the All Africa Games. In fact, the first set of people that usually violate this policy are usually top government functionaries, so I'd like to see the President, Vice President, Senate President, etc use made in Nigeria cars as their official cars.

2) A local content policy will definitely be necessary at some point. There were many local companies that supplied parts to PAN, these and similar companies would need to be encouraged the same way that the auto companies were encouraged.

3) Infrastructure: This is key. People often talk about power when they talk about the auto policy, but it's not just about power. Would companies like PAN be forced to move their cars across country on articulated trucks? This is where the rehabilitation of the railways comes in. I would also like to see rail links to other West African countries (particularly the landlocked countries), so that it would be easier to export.

4) And most importantly, we need to train our manpower to take up the opportunities that would be created by this policy.
Well said naptu2, i someone is taking down these points you have made, expecially the local content policy. I hate to see this policy fail after costing nigerians a bit of pain.
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:39pm On Oct 20, 2014
naptu2:


How could it have been solely Buhari's government, which was in power for only 20 months, that was responsible for the setback? Was it Buhari that gave contracts to Coscharis to import BMWs for the All Africa Games 2003, rather than PAN? Was it Buhari that imported Volvos for the 1973 All Africa Games? Was it Buhari that instituted SAP? Get real.
There is no point wasting time with these guys, you know he will resort to insults at some point.
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:42pm On Oct 20, 2014
atlwireles:


You are better off, sticking with what you know. When, I need to talk about fashion, I will ask your opinion.
The difference between me and you is i ask questions, i use my brain whether i like the policy or not.
Re: Nigeria’s New Auto Policy Drops import By 20% by atlwireles: 1:43pm On Oct 20, 2014
Obiagelli:

The difference between me and you is i ask questions, i use my brain whether i like the policy or not.

Good for you.
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:45pm On Oct 20, 2014
atlwireles:


Good for you.
Same here
Re: Nigeria’s New Auto Policy Drops import By 20% by Ngwakwe: 1:48pm On Oct 20, 2014
Obiagelli:

I would expect that you point out my error.

I actually don't know from which stand point you based your objections

1. Foreign Reserve

2. Employment creation

3. Technology transfer

4. Industrialisation

5. Community Development

6. The intended credit scheme (buy and pay in ten years with your banks arrangements)

7. Economic bargain.

Etc

Bear in mind that most Auto Industries do provide or are capable of generating their electric powers using turbines and moreover, most big multinational companies in Southern Nigeria run on Natural Gas with 70 to 90% supply efficiency from Shell and other suppliers.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 1:54pm On Oct 20, 2014
atlwireles:


How many assembly plants were in Nigeria in 1973? I don't know myself, any help will be appreciated.

By 2003, please truthfully tell us the, the physical and technical situation of PAN. Was Pan even doing any assemble or just importing cars, that were resold?


Bedford started production in 1959. The Federal Government started negotiations for the establishment of more automobile plants in 1969 and Peugeot (PAN) started in 1971. VON started around the same time.

In 2003 PAN was still making Peugeot 504. They only stopped in 2005 (you can research it. It was the last plant to stop making Peugeot 504s).

Re: Nigeria’s New Auto Policy Drops import By 20% by Ngwakwe: 1:58pm On Oct 20, 2014
naptu2:

In 2003 PAN was still making Peugeot 504. They only stopped in 2005 (you can research it. It was the last plant to stop making Peugeot 504s).


What is the effect of Bakassi dispute on Peugeot with regards to Nigeria foreign policy?
Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 1:59pm On Oct 20, 2014
Ngwakwe:


I actually don't know from which stand point you based your objections

1. Foreign Reserve

2. Employment creation

3. Technology transfer

4. Industrialisation

5. Community Development

6. The intended credit scheme (buy and pay in ten years with your banks arrangements)

7. Economic bargain.

Etc

Bear in mind that most Auto Industries do provide or are capable of generating their electric powers using turbines and moreover, most big multinational companies in Southern Nigeria run on Natural Gas with 70 to 90% supply efficiency from Shell and other suppliers.

Ngwakwe i am not talking wishful thinking here, please read naptu2's post on PAN and VON, which direction is this policy taking us? How comprehensive is it.

I raised questions on how this policy ensures that these companies at some point buy parts locally.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 2:01pm On Oct 20, 2014
Ngwakwe:



What is the effect of Bakassi dispute on Peugeot with regards to Nigeria foreign policy?

What the heck does that have to do with the fact that Peugeot was still making 504s in Nigeria up till 2005 and the fact that there was a policy in place that government should only use made in Nigeria cars?
Re: Nigeria’s New Auto Policy Drops import By 20% by atlwireles: 2:04pm On Oct 20, 2014
naptu2:


Bedford started production in 1959. The Federal Government started negotiations for the establishment of more automobile plants in 1969 and Peugeot (PAN) started in 1971. VON started around the same time.

In 2003 PAN was still making Peugeot 504. They only stopped in 2005 (you can research it. It was the last plant to stop making Peugeot 504s).

Surprised PAN was operation in 2003. Nobody was buying 504s in 2003, at least not that I know.

Thanks for the Bedford research.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 2:08pm On Oct 20, 2014
atlwireles:


Surprised PAN was operation in 2003. Nobody was buying 504s in 2003, at least not that I know.

Thanks for the Bedford research.

In fact they were making mock up kits (that's styling kits) as recently as 2008.
Re: Nigeria’s New Auto Policy Drops import By 20% by Ngwakwe: 2:11pm On Oct 20, 2014
Obiagelli:


Ngwakwe i am not talking wishful thinking here, please read naptu2's post on PAN and VON, which direction is this policy taking us? How comprehensive is it.

I raised questions on how this policy ensures that these companies at some point buy parts locally.


Even without buying parts locally the policy is great and commendable hence no need of diverting to secondary stage at the moment.

Local sourcing is dependent on Nigeria as a country in terms of availability/quality of the said resources and government's guidelines and not solely (or necessarily) on the foreign auto industries.

Remember your argument was on protection of Indigenous Auto manufacturers.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 2:17pm On Oct 20, 2014
Let me clarify about Peugeot 504. PAN continued making Peugeot 504 in Nigeria, when other countries had stopped producing, it for specific reasons.

The original goal of the 1969 auto conference was to produce a Made In Nigeria car. Bedford had been doing CKD since 1959, but Gowon wanted a completely made in Nigeria car. Peugeot took this challenge very seriously.

They had been increasingly sourcing parts in Nigeria and they kept the public informed about it. So you'd hear announcements like 70% made in Nigeria, 80% made in Nigeria, etc.

You could win a 504 if you hit a hole in one at the Nigerian golf tournament at Ikoyi Club in the 1980s. It was heavily marketed.

Peugeot had a joint venture with the Nigerian Gas Company (a subsidiary of NNPC) to produce a Peugeot 504 that ran on gas (1989). There was a lot of publicity about it, but NGC did not fulfil its part of the obligation (there were no filling stations equipped with gas dispensers).

So this was a thing of pride for PAN. They had built a Made In Nigeria car and they wanted it to go on forever, so they kept re-inventing it. Adding plastic here and there, until they finally stopped making it in 2005. They were still re-modelling the cars in 2008.
Re: Nigeria’s New Auto Policy Drops import By 20% by Ngwakwe: 2:21pm On Oct 20, 2014
atlwireles:


Surprised PAN was operation in 2003. Nobody was buying 504s in 2003, at least not that I know.

Thanks for the Bedford research.

Ask him to give us the sections/ departments that were fully operational and not just that an inconsequential department still exist at the time.

By his logic, may be Michelin is still operational in Nigeria.

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Re: Nigeria’s New Auto Policy Drops import By 20% by Nobody: 2:38pm On Oct 20, 2014
Ngwakwe:



Even without buying parts locally the policy is great and commendable hence no need of diverting to secondary stage at the moment.

Local sourcing is dependent on Nigeria as a country in terms of availability/quality of the said resources and government's guidelines and not solely (or necessarily) on the foreign auto industries.

Remember your argument was on protection of Indigenous Auto manufacturers.
Then policy is not comprehensive enough, for i am never satisfied with half baked policies.

Yeah indigenous manufacturers, how will they compete financially (local bank rates), Import waivers to big manufacturers. Are we going to need another PIB soon or its good bye innoson and innosons to be

Btw i will like to see what second stage is about? And when they will kick start it or they will think about it when we get there.
Re: Nigeria’s New Auto Policy Drops import By 20% by Ikenna351(m): 2:52pm On Oct 20, 2014
atlwireles:

Surprised PAN was operation in 2003. Nobody was buying 504s in 2003, at least not that I know.
Thanks for the Bedford research.

PAN 504, especiaaly the SW, was still in production at that time due to high demand. Even though they stopped the production of 505 that succeeded 504, but high demand for 504 couldnt make them stop the production of 504, so they had to continue 504 production after 505 was discontinued.

Ngwakwe:

Ask him to give us the sections/ departments that were fully operational and not just that an inconsequential department still exist at the time.
By his logic, may be Michelin is still operational in Nigeria.

Peugeot 406 PAN production continued up till 2008, even when 406 production stopped in 2004 in Europe. In late 2012, I saw a brand new 406 PAN productionon on sale at ASD motors, here in Abuja.


Ikenna

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Re: Nigeria’s New Auto Policy Drops import By 20% by anonimi: 2:55pm On Oct 20, 2014
naptu2:

4) And most importantly, we need to train our manpower to take up the opportunities that would be created by this policy.

Many thanks for your well researched inputs on this thread as usual.
I hope our youths realise that the above will not be with university degress mainly. Most of the jobs will require TECHNICAL and VOCATIONAL schools training and real hands-on skills.
Re: Nigeria’s New Auto Policy Drops import By 20% by naptu2: 3:16pm On Oct 20, 2014
anonimi:


Many thanks for your well researched inputs on this thread as usual.
I hope our youths realise that the above will not be with university degress mainly. Most of the jobs will require TECHNICAL and VOCATIONAL schools training and real hands-on skills.

That's exactly why I put that there. Technical and vocational education is very important. In 2005 I found an indonesian website that was created to discuss welding jobs in the nigerian oil industry. Indonesians and malaysians were taking advantage of these opportunities, but nigerians say that there are no jobs.

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