Benue State University, Makurdi

State and the Development of the Automotive Industry in Nigeria: Bridging the Gaps

Peter Labe Atime

Abstract

Nigeria has initiated several policies and strategies to exploit the automotive industry for rapid industrialization and development. Yet, the growth of the industry has been slow. This study examined the role of the state in the development of the automotive industry in Nigeria. The study was anchored on the Dependency theory. Key informant interviews were used to obtain primary and supported with secondary sources. Data was analyzed using the qualitative descriptive method. Findings of the study implicate the ruling political elites in the lack of development of the industry. They have failed to protect the industry by initiating policies that discourage local production as evident in the 2020 Finance Act and have been inconsistent with policy implementation. Findings also revealed that most Nigerians, particularly the ruling class, have shown preference for foreign built automobiles and a disdain for those that are locally assembled. The penchant for foreign vehicles in Nigeria, which is a symptom of dependency, has denied the local industry of patronage and capacity to increase production and develop. To overcome these problems, the following recommendations are made. (1) The elite must demonstrate the political will to implement policies that favour local automotive development. (2) Implementation of prohibitive import tariffs and levies for used vehicles to discourage importation (3) Encouraging patronage of locally assembled vehicles through government patronage and affordable vehicle purchase scheme for the ordinary Nigerians.

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