• Thursday, March 28, 2024
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BusinessDay

NADDC awaits CBN’s finance licence approval for Vehicle purchase scheme

CBN-HQ-Nigeria

…as Dangote’s 7000 per year assembly plants nears completion

National Automotive Design and Development Council (NADDC) is awaiting the approval of finance licence from the Central Bank of Nigeria (CBN) for the take-off of the proposed Vehicle Purchase Scheme.

The scheme was part of the market development strategy designed by the Council, to encourage patronage of locally assembled vehicles by both corporate and individuals.

Documents obtained by BusinessDay showed that from the sum of N10 billion proposed for the scheme adding that the commission has already completed and test-run the electronic platform for anti-smuggling and the automotive credit purchase scheme as at May 2015 while awaiting the reconfiguration of the NCS vehicle identification number (VIN)
data capture.

Confirming this, Luqman Mamudu, NADDC’s Director, Policy and Planning Department told BusinessDay that several Assembling plants are at various completion stages.

According to him, the Council has attained nearly 500,000 installed capacity to assemble in 2017 as part of efforts geared toward attracting component manufacturing and employment generation in the country.

“Very significant global automotive OEMs and key  Nigeria Entrepreneurs joined the automotive investment train since we last published our statistics in 2015. Besides, the building of assembly facilities including installation of equipment continue till date.

“There was a time when investors weren’t too sure about government position with respect to the policy, the pace of investment slowed down then but it has since picked up with open support demonstrated by the government.

“Our Minister, Dr. Okechucku Enelama gave the policy renewed push. Cosharis Motors has completed a world-class automotive assembly plant in Lagos. The plant and that recently commissioned by Elizade Motors are robust and can quickly be upgraded to assembly Completely Knocked Down (CKD) vehicles.

“Globe Motors has also completed civil works for a massive assembly plant in Lekki. The company is now taking delivery of equipment. Dangote has almost completed a 7000 per year assembly plants. A Chinese firm in the middle of Abia state has built a kilometer long plant for the fabrication of agricultural support light automobiles, Caledonian Motors belonging to Deji  Abiola is installing equipment to assemble Chines cars and light commercial vehicles.

“I can go on and on but a comprehensive list will be released in April. NADDC has taken delivery of equipment for one of the automotive safety laboratories in Lagos. We are installing now. We finally resubmitted an application for a finance license to CBN for the Vehicle purchase scheme.

“We hope for quick processing because its launch will drive demand for locally made automobiles. Our technical partners Rand Bank of South Africa has promised to match whatever we put in as equity. Nigeria
Banks and other institutional investors are expected to contribute. The sources of the fund will determine final cost to Nigerians but we hope for interest rate far below that of the market at the moment,” Mamudu stressed.

While responding to BusinessDay inquiry on the bill which seeks to repeal the Centre for Automotive Design and Development Act, 1992; Mamudu noted that the quick passage of the legislative framework sponsored by Uzoma Nkem-Abonta will boost foreign direct investment into the Nigeria’s automobile industry.

“Yes, we were delighted to learn that a private member has sponsored the bill in the National Assembly. We are hoping for a quick passage and government has assured of support. Its passage into law will open the floodgate for investors especially OEMs wary of our penchant to change policies overnight. The south African automotive policy is by
legislation and you can see all the global brands are there.

“The National Automotive Repository is a portal built to collect data from all stakeholders in the industry, Assemblers, Vehicle inspection offices, Automotive dealers and repair outlets, vehicle registration offices and Nigeria Customs. Most of the other stake holders are already inputting data at pilot level.

“Customs is yet to fully integrate with us but we are hoping they will soon. It will help to complement their effort to curb smuggling while being a veritable source of Data to us. The portal will be formally launched in April. Nigerian can visit it to check  VIN at no cost for vehicles they plan to acquire. Also invaluable for National Security and traffic control /regulation.

“You can visit it. It is live www.narp.gov.ng. It is crucial for monitoring and evaluating the policy implementation process. Right now, we beg stakeholders to send data with minimal response. This tends to force us into the street at great cost and in resources including time.

“Local content is the ultimate objective.You know that our strategy has been to increase the quantum of automobiles assembled in Nigeria in order to attract component manufacturing where real employment opportunity is. We have reached that stage with nearly 500,000 installed capacity to assemble in 2017.

“Never mind what proportion is SKD or CKD or if capacity is fully utilised, we have a few administrative setbacks. They are all Knocked Down (KD). This is the signal that automotive component manufacturers need to start considering a country as an investment destination. We plan a global automotive local content forum in Lekki Free Trade zone
in June this year. We are inviting all major players from around the world to present our case,” Mamudu explained.