• Friday, March 29, 2024
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NAMA financially crippled, membership apathy worsens

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For many years, stakeholders in the automotive sector have criticised the Nigeria Automobile Manufacturers Association (NAMA), unlike its National Association of Automobile Manufacturers of South Africa (NAAMSA) counterpart for not being proactive and upbeat in contributing its quota towards the growth of the nation’s auto industry. On the sidelines of a recent conference, REMI OLAOFE, executive director, Nigeria Automobile Manufacturers Association was cornered by MIKE OCHONMA, BusinessDay’s transport editor where he spoke on a number of issues within the association and the nation’s auto industry.  

Why is Nigeria Automobile Manufacturers Association (NAMA) not effective as a very strategic stakeholder like NAAMSA of South Africa

I want to believe that the Nigeria Automobile Manufacturers Association (NAMA) is still at a teething stage with all the problems associated with that phase of an Association. This is worsened by the delay in securing the final sign off of the automotive policy that supposed to define the modus operandi of the industry.

 What is the cause of the high level of apathy being exhibited by NAMA  members

I see it as a silent war that derived from the large number of players trying to attract the declining number of clients with effective demand. This is purely a case of negative competition which is very destructive.

Why have NAMA members failed in the past years to influence government policies towards the development of the automotive industry like in any other part of the world

Honestly, NAMA as a very critical player in the automotive industry need to speak with “one voice” which is missing. I also believe there are strong cartels working against the realisation of the Auto Policy because of their selfish interests. For instance, do we expect distributors of fully built vehicles to be excited about the birth of the Auto Policy?

There are rumours of high level of indebtedness by members for many years. How true is this

The diminishing zeal in the industry is bound to take its toll on the Association. We are experiencing a downward trend in members’ financial commitment to the Association.

 What are the loopholes in the auto policy that was rejected by federal government

The truth is that, we don’t know what the loopholes are. The only explanation we got came from the former chairman, Senate Committee on Industries in the last National Assembly when he said President Muhammadu Buhari wants the automotive policy passed as a law rather than a Bill to give it adequate legal backing.

 How can you describe the role and impact of National Automotive Design & Development Council (NADDC) versus the auto assembly rebirth in Nigeria

I know that, the National Automotive Development & Design Council (NADDC) has good intentions but I want to believe the auto assembly Rebirth was hastily carried out without an indepth stakeholders’ consultation. There are inter-ministerial issues that have remained difficult to resolve because of conflicting short term versus long term interests and objectives among the affected Ministries.

 Is the Nigeria Automobile Manufacturers Association broke

NAMA depends solely on subscriptions paid by its members. With the declining loss of interest in the industry that is taking its toll on the Association, coupled with the downward trend in members’ financial commitment, the probability that, the association is financially constrained is expected.

Why is the NAMA secretariat located within the premisesof a competing auto assembler and also a member of the association

Paucity of funds is largely responsible for NAMA office still being where it is. We are currently housed free of charge by a member that owns the property for which we forever remain most grateful as an Association.

What are the expectations of NAMA following the appointment of the new Industries minister, and what are reactions of industry stakeholders

We expect speed in addressing all the lingering issues affecting the smooth running of our Assembly Plants. These issues must be quickly resolved to avert another round of collapse of the industry in the face of competition. This is even more pertinent with the recent signing of Nigeria’s membership of the African Continental Free Trade Agreement (AfCFTA).