Expanding the Automotive Industry in Nigeria: Car Assembly Plants in Aba, Umuahia and Ohafia
The supercharged across the state, infrastructure projects are intentionally laid pathways to A Greater Abia. These masterful strokes are not ends in themselves as some shortsighted critics have posited. They are in a damned hurry to flaunt their anti-Otti antics than seat down, study to understand the why and how of the Otti Wave projects.
These fine gentlemen are rather pumped up in their myopia, and erroneously indulge in shameful comparisons. May I ask them: Have you not noticed that all fingers are not equal?
Secondly, have you not honestly taken stock to understand the infrastructural rot in Abia before HE, Dr Alex Chioma Otti OFR assumed office in 2023?
Thirdly, when will you all wake up and face the realities in Abia State and stop being deceived by a Scottish Piper who does no good than fan the ambers of ethnicity bigotory?
Let someone in his disillusioned camp, take him on a tour of the Republic of Rwanda. I personally took myself there in December 2023, when I was pondering my role in the media space, having spent decades quietly in the four walls of the academia. I had to ask myself what legacy I want to be identified with. That 2 weeks stay in the Republic of Rwanda, convinced me to take the lane of caution as against the mad rush for content creation.
Now, let’s look into the Devastating Impact of Dilapidated Road Networks on Investment
A dilapidated road network can have a devastating impact on a state’s economy, discouraging investors and hindering economic growth. According to a report by the Nigerian Chamber of Commerce, Industry, Mines and Agriculture, the poor state of roads in Nigeria results in an estimated 30% increase in transportation costs, making it difficult for businesses to operate efficiently (Source: Nigerian Chamber of Commerce, Industry, Mines and Agriculture, 2020). This can lead to a decline in investment, as businesses seek alternative locations with better infrastructure.
The consequences of a dilapidated road network are far-reaching, affecting not only businesses but also the overall quality of life for residents. A study by the World Bank found that every 10% increase in road density leads to a 3.4% increase in economic growth (Source: World Bank, 2019). Conversely, a poor road network can lead to reduced economic activity, decreased competitiveness, and lower living standards. In Abia State, the poor condition of roads has been a major concern, with many roads in dire need of repair or reconstruction.
However, with the governor’s aggressive rejuvenation of the state’s infrastructure, Abia State is poised to become a hub for investment and economic growth. The governor’s efforts to repair and reconstruct roads, as well as invest in other critical infrastructure, are laying the groundwork for robust big-box projects in the state. With a projected investment of over ₦100 billion in infrastructure development, Abia State is expected to experience significant economic growth, with GDP projected to increase by 10% annually over the next 5 years (Source: Abia State Government, 2022). As the state’s infrastructure continues to improve, Abia State is likely to become an attractive destination for investors, driving economic growth and development.
Can you see? Otti is laying out the ground work for something bigger. What’s that you may ask?
Car Assembly Plants in Aba, Umuahia, and Ohafia
The South East, known for its vibrant commercial activity, is home to several car assembly plants, including the Innoson Vehicle Manufacturing Company, which produces over 10,000 vehicles annually (Source: Innoson Group, 2022). These plants have created employment opportunities for thousands of people, contributing significantly to the Southeastern, Nigerian and African economies.
Now, focusing on Abia state, Aba and Umuahia precisely, the commercial and administrative capital cities of Abia State, these cities can definitely also host to several car assembly plants, which will the capacity to produce over 5,000 vehicles per year that can be used for commercial purposes via hire-purchase agreements. These plants will not only created jobs but also stimulated economic growth in the region.
Ohafia Local Government, despite facing power outage challenges, is poised to become a hub for car assembly plant. With negotiations underway to privatize the power sector and bring in private investment, the area is expected to experience significant economic growth The planned private sector involvement is expected to attract new businesses, creating new job opportunities and stimulating economic growth.
The car assembly plants in Aba, Umuahia, and Ohafia can have a combined production capacity of over 20,000 vehicles per year, which can be designed to serve the commercial vehicle sub sector making Abia State a significant player in Nigeria’s automotive industry. The industry can also attract foreign investment, with several international companies partnering with local firms to establish car assembly plants in the state.
According to projections based on the report by the National Bureau of Statistics (NBS), this addition to the automotive industry in Nigeria contribute over ₦1.831 Trillion to the country’s GDP in 2032 (Source: NBS, 2020). The industry can also create over 50,000 jobs, both directly and indirectly, contributing significantly to the country’s economic growth.
The establishment and growth of the automotive industry in Abia State has also led to the development of ancillary industries, including component manufacturing, auto repair services, and logistics. These industries will create new job opportunities and stimulated economic growth in the region.
The car assembly plants in Aba, Umuahia, and Ohafia will drive economic growth and development in Abia State. With the planned privatization of the power sector in Ohafia Local Government, the area is poised to become a hub for car assembly plants, creating new job opportunities and stimulating economic growth.
A Message to the Good People of Abia State
In conclusion, as we continue to navigate the challenges of accessing affordable electricity, it’s essential to remember the lessons of the past. Recall the days when Econet (now Airtel) dominated the telecommunications landscape in Nigeria, with high prices for calls and SMS. The entry of MTN and later Globacom brought much-needed competition, leading to a significant reduction in call and SMS rates.
The same principle applies to the power sector. Currently, Geometric Power is the primary power generation plant serving Abia State. As a result, the company has significant control over the pricing of electricity, leading to higher rates for consumers.
However, as more power plants come online in the state, we can expect to see a similar phenomenon as in the telecommunications sector. Increased competition will drive down prices, making electricity more affordable for residents and businesses.
So, let’s be patient and optimistic about the future of power generation in Abia State. As we welcome new investors and power plants, we can expect to see a reduction in electricity rates, making life easier and more affordable for everyone.
Let’s look forward to a brighter future, with reliable and affordable electricity for all!
Dr Chukwuemeka Ifegwu Eke writes from the University of Abuja Nigeria.
