As per Mr. Remi Olaofe, the director of NAMA (Nigeria Automotive Manufacturers Association), the sole reason for Nigeria not flourishing in the automobile sector is its auto policy which is still in the processing phase and due to be implemented. Back in the 1970s, based in Nigeria were six automobile plants that manufactured all types of cars, trucks, and buses. From National Trucks Manufacturers Limited to Volkswagen Nigeria Limited, all were a part of the automobile hub in Nigeria. Nigeria took utmost advantage of its huge population and cheap labor this time.
However, today it has surrendered to exporting vehicles to Ghana and making its automobile industry flourish. As a result, Ghana is taking full advantage of this situation and growing its industry with the help of Nigeria's hard work. Mr. Olaofe gives full credit for this downfall to Nigeria's late implementation of the auto policy. However, he adds that the vehicles manufactured and assembled in Nigeria are exported to Ghana, taking the full credit and earning the on-top profits with minimum labor and effort.
Trading is always easier than making the product itself. Suppose in Ghana the vehicles are imported being fully built. In that case, they only need a showroom to display the Nigerian vehicles and earn handsome profits. Hurdles like arranging the raw material and infrastructure are to be tackled by Nigeria.
The amount of labor and resources required to manufacture a vehicle is unimaginable, from the parts as small as the screws to the tires and windshields. If Nigeria does all, then the maximum profits belong here. Today several automobile companies are operating from Ghana, simply importing Nigeria's vehicles. Suppose today the Nigerian government makes the auto policy and ensures its implementation. In that case, Nigeria can make and sell its self-manufactured products and again revive being a leader in the sector.
Considering Nigeria's population, the amount of production done here cannot be overlooked. Ghana is using this production capacity for its goods now as importing a good is much easier than making the product yourself. Therefore, they have saved themselves from all the hassle of hard work and are solely eating the fruits of Nigeria's labor.
However, Ghana cannot be blamed for taking advantage of this situation as anyone would do the same in these circumstances. The people responsible for this trading are the government's political standing. If all are working individually, there are hardly any chances for the auto assemblers in Nigeria to get their rights. Ghana or another country ruling their industry will always take advantage of them.
NAMA is supposed to help give all the automobile manufacturers a platform where they can all come together and vote for this policy.
