Nigeria (Commonwealth) _ The car Dealers Association of Nigeria (ADAN) has declared its intention to revolutionize the Nigerian car industry. This was declared by the group during its first awards ceremony and annual stocktake, which was themed “The Legal Problems Inherent in Operating in an Informal Trade Sector; Auto Trade,” in Lagos.
As an association, ADAN clarified that it really aims to elevate the car dealing industry in the nation and that it will always be a vital source of assistance for all of its members, no matter what.
Kennedy Ukagba, the Chairman of the Organizing Committee of the First Awards Ceremony, was represented by Mr. Amobi, the Chairman of the Board of Trustees (BOT) of the Professional Platform of the Auto Dealers Association, said that the pledge was made in Nigeria following the car industry’s 30% GDP contribution to Nigeria.
That informality that plagues the car business has to change in order to raise the sector into a formal, acknowledged economic sector. An industry is considered to be an informal sector of the economy if it contributes at least 30% of Nigeria’s GDP. “If that description does not worry you, it worries me” he said.
Our goal is to become a stronghold for all of our members, protecting them against the whims of government authorities as well as any kind of intimidation or prejudice from outside sources. According to him, we also try to make sure that our members follow specific ethical guidelines when conducting business.
He described the occasion as historic in the history of the car industry in Nigeria, adding that great care was taken to create an organization that could serve as a catalyst for change in Nigeria as well as a standard in the car industry. According to him, the organization have the authority to request in writing that the federal, state, and its authorities provide an explanation for any regulations that hinder the development of its companies.
A determined trade association may have an impact on regulations pertaining to the particular industry inside thanks to the capabilities granted to organizations by virtue of their registration with the Corporate Affairs Commission. Numerous groups have done this in the past and are still doing it now. He emphasized that when a registered trade organization is brought before government authorities and their parastatals, law enforcement agencies and their operatives, and other bodies of authority such as civil and traditional institutions, they take notice.
He pointed out that, with the exception of administrative bodies like the board of trustees and the executive, to which any member might aspire, associations lack a distinct hierarchy.
The vice president of Nigeria claims that although domestic production can only meet 14,000 of the nation’s yearly automobile demand of 720,000 units. As a result, importation—primarily of old automobiles—has persisted in addressing the supply deficit. According to the NADDC, the nation spends around $8 billion on imported cars annually. Despite not being on the Central Bank of Nigeria’s (CBN) list of goods that cannot be purchased with foreign exchange, cars and their related components are more difficult for assemblers to get, which drives up costs and lowers demand from consumers. The biggest purchasers of new cars, corporate entities, have slowed down or delayed purchases, increasing the fleet replacement cycle from four to seven years. Thanks to their reputation for dependability, Japanese brands account for over a third of the market for new and used cars. Sixty percent of secondhand cars come from the United States, with the majority being Japanese models like Toyota. According to the NADDC, the nation spends around $8 billion on imported cars annually.
