Nigeria would emerge a net exporter of vehicles in the continent by 2016 with an average production of two million (2,000,000) vehicles from a predicted one million (1.548) for this year and a net sale of about 58,490 vehicles from a predicted 32,163 for 2012, and 54,755 vehicles per thousand members of the population at the end of the forecast period, from the present 38.
The Business Monitor International (BMI) said in its latest report published yesterday on the Nigeria auto sector.
"We see Nigeria becoming a net exporter of vehicles by 2016, with an expected 8,427 vehicles leaving the country – whereas 14,489 will enter over the course of 2012. These metrics all establish a firm positive path for the national auto industry – and with generous government assistance, as well as a core position in the national mass transit plan; this seems only likely to improve.
Further, it emphasised that the second quarter of this year would see significant improvements in three significant areas of the Nigerian auto industry: Vehicle production, vehicle imports and car ownership.
While pointing out that the high level of import in comparison to production may not necessarily demonstrate a strong domestic production side of the industry, it however said on the flip side, there were strong indications that the level of desire to buy vehicles could be closely tracked to economic confidence.
The report further submitted that there were noticeable return to normality in terms of consumer access to credit, a key proviso for most vehicle purchases in the country, stressing that beyond government support of the industry, the National Automotive Council (NAC) has supported up to 30 Nigerian companies with loans totalling $31billion, according to the Director-General of the agency, Alhaji Aminu Jalal.
"Due to an increased government focus on procuring vehicles and components which are produced in the country, this seems likely to be a significant driver for demand – and therefore will require in-country capacity. This is certainly an achievable goal, though, as at present many government departments only use 5 per cent Nigerian built vehicles," it added, pointing to a headline advice given to SMEs to partner and form Joint ventures with foreign auto component producers, so as to increase the ability to access both technologies and capital.
Nigeria to become net exporter by 2016.