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Nigeria’s Auto Industry to Import Less than 10,000 Vehicles in 2017, Says Ade-Ojo

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  • Nigeria’s Auto Industry to Import Less than 10,000 Vehicles in 2017, Says Ade-Ojo

Nigeria’s auto industry is expected to import and sell between 8,000 and 10,000 new vehicles this year, a figure that is lower than the 15,000 projected for last year.

The Managing Director, Toyota Nigeria Limited, Mr. Kunle Ade-Ojo, gave this figure at the company’s forecast for the Nigerian automobile industry in 2017 at Toyota’s quarterly briefing in Lagos on Monday.

The forecast, Ade-Ojo said, was based on the industry’s performance in the first quarter of 2017, adding that at the end of the first quarter of 2017, total import figures for the nation’s automobile industry from the nation’s ports came to about 350 units, compared to about 3,500 units that came in at the same time last year.

He said the data showed that “imports dropped by about 90% between 2016 and 2017 Q1. In terms of retail sales, we are estimating, based on the information we have, that the auto market did about 2,000 vehicles compared to about 5,000 vehicles that were sold in Q1 of 2015, bringing it to a drop of over 50% when you look in terms of retail sales”.

In terms of market share, he said: “Toyota had a share of about 22-23% of Q1 sales, generally”.
“But forex continues to be a major challenge and interest rates have gone up,” he added.
He explained that along with the dollar scarcity, “so also the naira is pretty much scarce and banks’ interest rates have gone up.

“Even though the exchange rate has moderated from a high of about N520 to the dollar and is trading at about N400 to the dollar, it is still not available,” he added.

Also providing figures on the performance of the industry in 2016, Ade-Ojo said: “In terms of sales, retail sales went from about 32,000 cars in 2015 to about 18,000 last year. So the market dropped by about 42%.”

He said Toyota Nigeria Limited “went down from about 8,000 cars in 2015 to slightly over 4,000 in 2016. So we had a drop of about 35%”.

Regardless of this, he said: “We grew our share from 24% in 2015 to about 26% in 2016.”

Reviewing imports in the same period, he said car imports dropped by about 60%, from about 18,000 in 2015 to just close to 7,000 in 2016.

“Of course in terms of our share of the imports, we had about 43% in 2015 and that dropped to about 38% in 2016,” he stated.

He said this was basically as a result of different sub-groupings, different manufacturers or auto distributors in the country and “in addition to that, the scarcity of forex affected businesses last year and that caused a major reduction in importation”.

According to him, the devaluation of the naira also affected sales last year, saying: “Whereas in the first half of 2016 the naira was about 200 to the dollar, by the end of the year it had doubled.

“So prices of vehicles also pretty much doubled and a lot of businesses could not afford to pay for the increase. We at TNL are struggling to survive.

“A lot of companies had to retrench their staff last year as a result of the tough economic situation.”

The Toyota boss said companies had to prioritise on what they would spend their limited funds on.
“Vehicles, you know are luxury items, except for the ones that are used for business, which are commercial vehicles and that is why commercial vehicles did way much better last year, at about 70% to 30% in terms of the ratio to passenger vehicles.

“Passenger cars reduced in sales more than commercial cars and of course when you look at the duties on passenger cars also at 70% compared to 35% for commercial, the impact is more on passenger vehicles,” he explained.

Also, he said companies had increased the number of years that their staff use their vehicles. “Normally, it used to be for four years, but now companies have taken it up to between five and six years before they will consider changing or replacing their staff vehicles,” he explained.e explained.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

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Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

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Dangote Shelves Steel Project to Prevent Monopoly Allegations

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Aliko Dangote, chairman of Dangote Industries Limited, announced the company’s decision to halt plans to enter Nigeria’s steel industry.

The decision comes just two months after the conglomerate had initially unveiled its intentions to invest in the sector as part of efforts to expand the economy.

Addressing journalists at his refinery in Lagos, Dangote explained that the board’s decision was driven by concerns over potential accusations of creating a monopoly.

“We have decided against pursuing the steel business to avoid being labeled a monopoly,” Dangote stated.

He explained that the company’s operations focus on adding value by transforming local raw materials into finished products.

The industrialist dismissed claims that his group enjoys monopolistic advantages, pointing out that their business practices have always fostered a competitive environment.

“When we entered the cement market, Lafarge was the only player, yet no one accused them of being a monopoly,” he stated.

Dangote further encouraged other Nigerian investors to explore opportunities in the steel industry, suggesting that there are ample resources and space for new entrants.

“There are many Nigerians with the financial capacity to invest. They should seize this opportunity to contribute to our nation’s growth,” he urged.

The billionaire’s call to action extended to Nigerians living abroad, inviting them to invest in their homeland.

“Bring your resources back from Dubai and other parts of the world and invest in Nigeria,” he said, reinforcing his commitment to seeing the country’s economy thrive through diverse contributions.

This decision marks a strategic shift for Dangote Industries, focusing on dispelling monopoly myths and promoting a collaborative business landscape.

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Goya Foods Takes Legal Action to Assert ‘Goya Olive Oil’ Trademark Ownership

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“Goya Olive Oil” trademark in Nigeria, Goya Foods Incorporated has initiated legal proceedings against the Registrar of Trademarks under the Federal Ministry of Trade and Investment.

The case, numbered FHC/ABJ/CS/883/2023, was brought before the Federal High Court in Abuja.

Goya Foods, a prominent producer and distributor of foods and beverages across the United States, Spanish-speaking countries, and Nigeria, seeks to enforce a longstanding consent judgment issued by the court in December 2006.

The judgment directed the Registrar to rectify the Trademarks Register to reflect Goya Foods Incorporated as the rightful owner of the “Goya Olive Oil” trademark, without any further formalities.

The lawsuit, exclusively revealed to sources, underscores Goya Foods’ determination to safeguard its intellectual property against alleged infringements.

According to court documents, Goya Foods obtained the consent judgment against Chikason Industries Limited, which was accused of marketing “Goya Olive Oil” in Nigeria, thus infringing on Goya Foods’ registered trademark.

Legal counsel for Goya Foods, Ade Adedeji, SAN, emphasized the necessity of rectifying the Trademarks Register to protect their trademark interests effectively.

Despite appeals to the Registrar, the requested rectification has not been implemented, prompting Goya Foods to escalate the matter through legal channels.

The case has been adjourned to September 27, 2024, for further proceedings, highlighting the complexity and significance of trademark disputes in the global marketplace.

Goya Foods remains committed to upholding its brand integrity and securing its proprietary interests amidst the evolving landscape of international trademark law.

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