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Data Collection Survey on Automotive Sector in the Federal Republic of Nigeria

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Data Collection Survey on Automotive Sector in the Federal Republic of Nigeria The Federal Republic of Nigeria National Automotive Council Data Collection Survey on Automotive Sector in the Federal Republic of Nigeria Final Report July 2015 Japan International Cooperation Agency (JICA) Yachiyo Engineering Co., Ltd. 6R JR 15-012 Foreign Exchange Rate (as of July 2015) US$ 1.00 = 122.74 Japanese Yen Nigerian Naira 1.00 = 0.617 Japanese Yen Data Collection Survey on Automotive Sector in the Federal Republic of Nigeria Table of Contents Table of Contents List of Tables List of Figures Abbreviations Executive Summary 1. Introduction ........................................................................................................................................................................ 1 1.1 Background ................................................................................................................................................................ 1 1.2 Objective .................................................................................................................................................................... 2 1.3 Survey Area................................................................................................................................................................ 2 1.4 Survey Schedule ........................................................................................................................................................ 3 2. Current Situation and Challenges of Automotive Industry in Nigeria ................................................................ 5 2.1 Automotive Industry in Nigeria ............................................................................................................................... 5 2.1.1 History of Automotive Industry Development ............................................................................................. 5 2.1.2 Position of Automotive Sector in the National Development Plan ............................................................ 7 2.2 Nigerian Automotive Industry Development Plan .............................................................................................. 13 2.2.1 Outline ............................................................................................................................................................. 13 2.2.2 Progress of NAIDP ........................................................................................................................................ 19 2.2.3 Priority Issues for Further Promotion .......................................................................................................... 38 2.3 Assistance by Donors ............................................................................................................................................. 40 2.4 Automotive Market ................................................................................................................................................. 41 2.4.1 Automotive Market ....................................................................................................................................... 41 2.4.2 Supply Chain .................................................................................................................................................. 45 2.5 Private Investment in the Automotive Industry .................................................................................................... 60 2.5.1 Investment Promotion in Nigeria ................................................................................................................. 60 2.5.2 Investment Situation after the New Automotive Policy ............................................................................ 62 2.5.3 Perception and Needs of Foreign Companies ............................................................................................. 62 2.6 Legal Framework related to the Automotive Industry ........................................................................................ 64 2.6.1 Prevailing Laws and Regulations ................................................................................................................. 64 2.6.2 Issues of the Existing Legal Framework ..................................................................................................... 65 2.7 Capacity of Related Government Agencies ......................................................................................................... 66 2.7.1 Federal Ministry of Industry, Trade and Investment .................................................................................. 66 2.7.2 National Automotive Council ....................................................................................................................... 67 2.7.3 Raw Materials Research and Development Council ................................................................................. 70 2.7.4 National Agency for Science and Engineering Infrastructure ................................................................... 71 Final Report i Data Collection Survey on Automotive Sector in the Federal Republic of Nigeria 2.7.5 Industrial Training Fund ................................................................................................................................ 73 2.7.6 Standards Organisation of Nigeria ............................................................................................................... 74 2.7.7 Small and Medium Enterprise Development Agency of Nigeria ............................................................. 75 2.7.8 National Office for Technology Acquisition and Promotion (NOTAP) ................................................... 75 2.8 Cooperation among Government, Industry and Academia ................................................................................ 75 3. Economic Situation in Lagos Area ............................................................................................................................ 77 3.1 Socio-economic Situation in Nigeria ..................................................................................................................... 77 3.1.1 Overview ......................................................................................................................................................... 77 3.1.2 Current Situation of Middle Class ................................................................................................................ 78 3.1.3 Manufacturing Sector .................................................................................................................................... 79 3.2 Economy in Lagos Area ......................................................................................................................................... 80 3.3 Major Industries ....................................................................................................................................................... 81 3.4 Business Environment ............................................................................................................................................ 82 3.5 Foreign Investment .................................................................................................................................................. 83 3.5.1 Business Activities by Foreign Companies ................................................................................................. 83 3.5.2 Lekki Free Trade Zone .................................................................................................................................. 83 4. Demand Outlook ............................................................................................................................................................ 85 4.1 Automobile Sales .................................................................................................................................................... 85 4.1.1 Trend of Automobile Sales ............................................................................................................................ 85 4.1.2 Demand Outlook ............................................................................................................................................ 89 4.2 Production by OEM Plants ..................................................................................................................................... 89 4.2.1 Existing Capacity ........................................................................................................................................... 89 4.2.2 Future Expansion ........................................................................................................................................... 91 4.3 Auto Parts Production ............................................................................................................................................. 92 4.3.1 Existing Capacity ........................................................................................................................................... 92 4.3.2 Future Expansion ........................................................................................................................................... 94 4.4 Human Resources ................................................................................................................................................... 95 4.5 Establishment of Supply
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