Reps pledge legislative backing for auto assembly plants to drive growth

…As NADDC vows to uphold standards, quality

Determined to ensure that auto assembly plants in Nigeria scale up productions and sales, the House Committee on Industry has vowed to protect investments in auto assembly plants with legislative backing.

Enitan Dolapo-Badru, chairman of the House Committee on Industry, pledged support recently in Lagos, after the tour of the facilities of Mikano Motors which assembles vehicles and produces components; CIG Motors, one of the biggest plants in Lagos that manufactures sedans and SUVs, and Dangote Sinotrucks.

The Committee on oversight function toured the facilities alongside the National Automotive Design and Development Council (NADDC).

Dolapo-Badru pledged the committee’s commitment to encouraging assembly plants through legislation and creating a conducive business environment.

“If assembly plants need legislation to innovate and improve their production, we will support them by putting in legislative ideas to enhance their business and help it thrive.

Dolapo-Badru said automotive assembly plants are doing a good job in conserving foreign exchange, adding that Nigeria will save FX when the auto manufacturing industry is working well.

He said people who previously imported secondhand trucks, now have the option of patronising new eco-friendly trucks produced locally at Dangote Sinotrucks in Lagos.

“They complained about funding because the cost of funding is very high, but we urged them to look beyond government patronage to increase sales number,” he explained.

Pointing out that government patronage is only about 3 percent of the whole of Nigeria, Dolapo-Badru urged automakers to seek ways of attracting ordinary Nigeria to buy locally-made cars.

He said assembly plants should put in credit schemes that will enable people to not put cash down to buy a car.

He believes in a free market where buyers will freely decide to either go for a new car or a used car.

“When you make the atmosphere conducive for an average Nigerian to purchase a new car and payment spread over time, the National Assembly will help you to thrive,” he added.

Also speaking, Joseph Osanipin, director general of the NADDC, said the country’s auto industry can only advance when components are manufactured to create jobs for Nigerians.

He said the Council has put regulatory measures in place to ensure the quality and safety of locally assembled vehicles.

He said NADDC inspects the facilities and capability of technical partners before licensing plants to assemble vehicles in Nigeria, and that they must comply with different ISOs including those domesticated by the Standards Organisation Nigeria (SON).

Pointing out that the SON set standards that assembly plants must comply with, Osanipin said NADDC’s role is to ensure that those standards are complied with, which explains why it regularly inspects plants to ensure those standards are complied with.

To him, the House Committee on Industry has an oversight function on assemble plants came to have first-hand knowledge about challenges and help put policies and laws in place to address them.

“We have the NAIDP, a major policy framework put in place to promote investments, expand their customer base, and ensure they have the necessary skill. We have training centres where technicians that assemble and work on aftersale services are trained,” he explained.