FG moves to raise automaker confidence in Nigeria

The Federal Government says it is determined to nip in the bud, perceived critical issues obstructing additional investment by Original Equipment Manufacturers (OEMs), otherwise referred to as global automakers.
Luqman Mamudu, director, Policy and Planning, National Automotive Design and Development Council (NADDC), said government is determined to build on recent gains in the local auto industry.
Mamudu disclosed that already, NADDC is equipping its automotive test laboratories located in Lagos, Enugu and Zaria, in readiness for the industry’s need for quality assurance.
He added that the laboratories will be certificated by global accreditation agencies because the automotive industry anywhere has to be globally competitive.
He said a task force constituted recently by the Ministry of Trade and Investment, will soon complete its assignment in addressing sensitive concerns bordering on constraints to the inflow of knocked down (KD) inputs through the ports; the unrestricted inflow of used vehicles, which tend to limit the market for new vehicles; and strategies to improve investor confidence in Nigeria.
He further stated that “the various OEMs also come with very robust training programmes for Nigerians. The ECOWAS has adopted the automotive industry as part of its region-wide industrial policy and is in discussions with the NADDC to include sourcing of component parts from member countries with capacity.”
He re-emphasized that “the Nigeria automotive industry has the capacity to lead the economic diversification process and we should all support it to gain full potential.”
“The import bill for automobiles is too high and may undermine Nigeria’s balance of payment position if not gradually reduced through local value addition, which is what the National Automotive Industrial Development Plan (NAIDP) offers.”
To accelerate the process of putting a holistic mechanism to the ongoing process, the NADDC official disclosed that UNIDO would be undertaking a study of the defunct component parts manufacturing this year, adding that the Kaduna and Osun state governments have granted NADDC Certificate of Occupancy (C of O) for a combined land area of 400 hectares to build automotive supplier parks.
As at the time of filing this report, a consultant to undertake an Outline Business (OB) case study has been appointed and the NADDC is in partnership with Bosch to develop human capital for the industry among others. It has scheduled the first of a series of workshops for assemblers for October 10 this year in Lagos.
Luqman reassured that though, “all Nigerians may not be able to buy cars immediately, most Nigerian Haulage firms and mass transit companies will re-fleet with new vehicles for improved standard of living of Nigerians.’’
It would be recalled that at a stakeholders meeting in Lagos with Okechukwu Enelamah, the Minister of Trade and Investment in attendance, Aminu Jalal, director-general NADDC, explained that the local content objective of the NAIDP is being equally attended to.
According to him, “As the operating capacity grows and attains a critical mass, the component parts manufacturers will focus attention on Nigeria” for which reason the country has to be ready.
The process, he stressed, requires patience, patronage and assurances to OEMs by all Nigerians.

 

MIKE OCHONMA