'Why Nigeria’s Auto Industry Collapsed'

'Why Nigeria’s Auto Industry Collapsed'

The Minister of Science and Technology, Mr. Ogbonnaya Onu, has attributed the collapse of Nigeria’s automobile and other industries to the absence of research and development

He said experience of the sector from the 80s and 90s showed that if the industry had carried out research and development, it would have remained strong and weather the external competition it faced.

With the highest population, largest economy and market in Africa, the minister said there was no reason Nigeria’s auto industry would not be strong enough to survive external competition.

According to Onu, "I think that that was why Peugeot Automobile of Nigeria (PAN) and all the other industries failed. So as soon as there was competition from outside, all these companies collapsed, but I think that we have to learn a lesson from this."

The minister made the disclosure when the Managing Director of Peugeot Automobile of Nigeria (PAN), Mr. Ibrahim Boyi, paid him a courtesy call in his office in Abuja.

He said: "If you look at what happened in 1980s and 1990s, it is very clear to us that if our automobile industry had done research and developmental work for a period of time, we would have been strong enough to succeed.

"Even when government opened up the sector to competition from outside, because government will not hover forever, the competition from outside wont stop."

While calling on the real sector to renew their research and development efforts, he said government would not fail to support and encourage local industries to thrive, adding that the ministry will lead the push for the patronage of made-in-Nigeria products.

He admitted though that government would grant some concession to infant industries because of external competition, the local industries must work hard through research to stand on its own.

"I believe it is still lacking here, and I do hope that your board will take this up as quickly as possible because if you don't do it, in future, you will not be in a position to compete effectively both with other industries within the country," the minister noted.