Business News
Meet Kano cars, Innoson’s local competitor
It just happens that Innoson Vehicle is not the only local vehicle assembling company currently operating in the country.
It just so happens that Innoson Vehicle is not the only local vehicle assembling company operating in the country.
Another company was already in existence before Innosson. It is called the National Truck Manufacturers Ltd.
About National Truck Manufacturers Ltd
Widely referred to as Kano Cars, National Truck Manufacturers Limited is a car assembling company that came into production in 1970. The company is located in Kano, and boomed during the 1970s.
During this period, Nigeria also witnessed the establishment of many other assembling plants such as Peugeot Automobile Nigeria Limited (PAN), Kaduna, Volkswagen of Nigeria Limited (VON), Lagos, Anambra Motor Manufacturing Limited (ANAMMCO), Emene, Enugu, and Steyr Nigeria Limited, Bauchi.
But virtually all these companies later went out of business, except for National Truck Manufacturers Limited. The company has mainly been assembling trucks. And even though it is not as popular as Innoson vehicle, it remains one of Nigeria’s only indigenous car production companies.
In 2010, it was reported that the NTM will start producing over 60,000 trucks in Nigeria.
Does the NTM threaten the presence of Innoson vehicle
Since NTM focuses more on the production of trucks, it may not exactly be a threat to Innoson Vehicle.
Moreover, many Nigerians on Twitter have opined that the company itself isn’t even known. According to them, they were just hearing about it for the first time, thanks to a tweet by a Nigerian lady identified as @ovieali.
We do Yusuf in Kano . It is the most profitable vehicle company by a Nigerian. Just like Innoson, they buy their engines from abroad. They are called NTM, National truck manufacturers LTd , Kano. Along Kano-Zaria road. pic.twitter.com/VROV00X9si
— ᴏᴍᴀsᴏʀᴏ ᴀʟɪ ᴏᴠɪᴇ™☤ (@OvieAli) March 28, 2019
What’s KanoCars? 1st time I’m hearing about it
— Yusuf_Yoshka (@YusufYoshka) March 28, 2019
Wow very impressive how come i never heard of this 🤔
— Malam_Naseer (@naseer_gk) March 28, 2019
Me too I'm shocked… I've never heard of them 🤔
— Nazir ✨ (@Nazirdanhajiya) March 29, 2019
Yeah this kind of things should be known publicly, it’s something to be proud of.
— Malam_Naseer (@naseer_gk) March 29, 2019
Things might change soon
Since Innoson Vehicle is not limiting its motor production to just cars, SUV’s, buses, and vans alone, NTM might become a competition in the future. Innoson recently introduced its newest trucks earlier this March.
#IVM Garbage Trucks. Keep Nigeria Clean.#MadeInNigeria #InnosonVehicles #ProudlyNigeria pic.twitter.com/yBNRQ3H5SJ
— Innoson Vehicles (@innosonvehicles) March 19, 2019
But both companies’ vehicles aren’t really “wholly made in Nigeria”
Both National Trucks Manufacturers Ltd and Innoson Vehicle are still just assembling cars, as they do not wholly produce their vehicles.
70% of Innoson’s car parts are produced locally while the rest are imported from Japan, China, and Germany.
Regardless, the good thing is that Nigeria has its own indigenous vehicle manufacturing companies. And with the right support from the Government, these companies can become the ideal providers of vehicles for Nigerians; thereby putting an end to vehicle importation.
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Business News
Cost of building materials rise by over 60% in one year
The price of building materials in the market experienced a rise of over 60% in the last one year.
The cost of Cement, Steel, Tiles and Plaster of Paris (PoP) cement, among others have risen by over 60% between March 2020 and March 2021.
For instance, the cost of steel, which was sold at N234,000 per tonne as of March 2020, had increased to N380,000 at the end of March 2021. This represents a 62% increase within the period under review.
While Dangote Cement increased from N2,600 to N3,800 (though it is sold at N3,600 in some areas in Lagos), Lafarge Cement and BUA Cement increased from N2,400 and N2,250 to N3,600 and N3,250 respectively within the same period.
The price hikes are not limited to the cost of steel and cement alone but also to other materials like Tiles, PoP cement, and roofing sheets.
The cost of super white cement increased from N2,500 (25kg) to N3,700, and the cost of high-quality white cement (40kg) also increased from N4,000 to N6,500.
The cost of gravel increased from N80,000 to N140,000; that of 8mm diameter and 25mm diameter (imported) increased from N234,000 and N245,000 to N330,000 and N380,000 respectively.
Doors are not left out in the hike. Costs of Flush door (high quality), Panel door and Turkish steel door (1,500 x 2,100) also rose from N35,000, N40,000, N165,000 to N60,000, N75,000 and N235,000 respectively.
Why the hike?
Industry experts have attributed the hike to persistent depreciation of the naira and the rising cost of other building materials.
Tunde Oluwole, a fellow of the Nigerian Institute of Builders, explained that the development was caused by high interest rate, inflation, increasing exchange rate and scarcity of forex in the country.
He said, “The increasing prices in Nigeria is a result of the combined effects of high-interest rates, devaluation of the naira, inflation, and non-effective distribution network of the materials.”
To Kolawole Adebisi, an Estate Developer, the development in the cement industry is caused by the ban of imported cement in the country.
He told Nairametrics that he is not against the ban, as the government’s intention is to boost local production of cement but explained that “the local manufacturers were unable to produce enough cement to meet the demand and this contributed to the rising cost of the product.”
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