Following the latest exchange rate which was increased last week from N282 to N313 , car dealers have lamented that the move will lead to many mass job loss in the sub sector.
A cross section of the operators who spoke with Auto Port Weekly in Lagos lamented that there will be further loss of jobs in the industry; calling on government to take urgent steps in addressing the situation.
Speaking on the development, Mr. Stephen Uzunouoma lamented that the operators are yet to survive from government automotive policy, adding that the monetary policy also caused more problems and difficulties.
According to him, the new hike in tariff will further cause hardship for car dealers and importers.
The dealer added that, "it appears that the government is serious with the move to stop importation of vehicles into the country, but the way and manner they are going about it is unfriendly. "
"We don't have any other business to do except selling of cars and I believe if the government did not do anything to the situation, then so many people will suffer because if there is no sale, there will be no payment for those working for the dealer.
Speaking on the development, another dealer, Chief Festus Chidieke disclosed that at the Berger automobile Market, there are over 20,000 direct and indirect jobs and it appears the number will reduce because of the new hike in exchange rate for duty payment.
He noted that car dealers engage the services of both automobile engineers, panel beaters, food vendors, car washer man and other artisans within the Berger market hence most of such technicians will fizzle out very soon.
"It’s a pity that even the informal sector of the economy will experience the usual downsizing exercise"
"Over 10,000 people are engaged in one way or the others and Berger has the largest auto market and has the highest record of people engaged indirectly, apart from the importers"
"The loss of jobs from this informal sector alone will further add to the on-going job loss in the whole of the economy," he added.
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