• Friday, April 26, 2024
businessday logo

BusinessDay

N2.5tr investment in local auto assembly wastes

N2.5tr investment in local auto assembly wastes

Following the inability of the administration of former President Goodluck Jonathan and President Muhammadu Buhari’s refusal to sign the automotive industry bill, Oscar Odiboh, academic doctor and lecturer at the Mass Communication department of the Convenant University Otta, has expressed fears that an estimated N2.1 trillion in local investments into the setting up of local auto assemblers by may be threatened.

In his presentation titled,: “Zero Patronage, Zero Tariff and the Redefinition of Patriotism by Nigeria’s Automobile Industry,” at the just concluded 2019 training workshop of Nigeria Auto Journalists Association (NAJA) in Lagos, Odiboh observed that, the huge resources so far deployed in the sector may go down the drain due to alleged refusal of the Federal Government to endorse the National Automotive Industry Development Plan (NAIDP).

The Federal Government under the administration of former President Goodluck Jonathan had in October 2013, announced the concept of NAIDP as part of measures to stimulate investment in local vehicle production.

Pointing out the sector is strategic to economic growth and development, he advocated that those who have investment in

automotive assembly should be encouraged, and arguing that the federal government cannot force assembly plants into reality.

The university don and automotive consultant also an automotive industry consultant said “Even some stakeholders are not comfortable with the policy and there have been too much ado in doing nothing.

He also advised the Federal Government to allow auto assembly plants to evolve: “Let the industry move on. Revolution is not by force. It starts with evolution. We must evolve to revolve. Let our auto industry evolve, then, it can revolve”.

The University lecturer called on the Nigerian Customs Service (NCS) to increase tariff on used imported vehicles from 30 percent to 80 percent, reduce tariff on brand new imported vehicles from 70 percent to 30 percent as well as consider the introduction of zero percent tariff on locally CKD assembled vehicles”

The National Automotive Design and Development Council (NADDC) according to Oscar Odiboh should restrict itself to design, development of infrastructure and campaigns on patriotic patronage of Made-in-nigeria vehicles.

Going back memory lane, Odiboh questioned what the Federal Government have achieved since 2013 when the National Automotive Industrial Development Plan has achieved. He queried how many genuine automobile assembly plants that the country has, describing them as many auto assembly plants that are licensed, where few are working, some fatlly wounded, while others are dead on arrival.

He queried the patriotic credentials of Nigerians both as government or individuals in buying what is produced locally, describing a patriot as one who loves and supports all that belong to their country, one who employs countrymen and women out of poverty into prosperity and someone who is a hid or her country’s regular customer.