Thursday, 16 January 2014
Automotive manufacturers await implementation of new auto policy
anxiously waiting for the implementation of the new national
automobile industrial development policy by the Federal Government.
They warned that delay in implementation of the new auto policy will
afford importers time to undermine it and render it ineffective.
Chief Operating Officer of NAMA, Valentine Maduele, who led other 15
automotive manufacturers including David Valentine Chukwudi Obi of DVC
group, Senator Mohammed Sanusi Daggash, Ibrahim Bayero of National
Trust, to commend government for the policy, said: "We cannot
over-emphasize that the essence of giving immediate effect to the
policy is to ensure anticipatory, non-value-adding importers who have
amassed a fortune selling imported vehicles to integrate backwards and
invest a little percentage of their fortune in developing the local
Madueke said the association consists of about 16 members now, made
up of companies such as PAN Nigeria in Kaduna, National Trucks
Manufacturers Limited (NTM) in Kano; Steyr Nigeria Limited in Bauchi;
ANAMMCO in Enugu; Innoson Vehicle Manufacturing Company in Nnewi;
Zahav Automobile in Lagos;Leyland in Ibadan; VON Automobile, Lagos;
Leventis in Lagos; Iron Products Industries Limited in Lagos; Gorgeous
Metals Limited in Kaduna; Autobahn Techniques in Lagos; Proforce
Limited (armoured vehicles) in Ode-Remo, Ogun State; Lasbag in Akure
He said automotive manufacturers have entered into contractual
commitment with Original Equipment Manufacturers, OEMs, to realise
this vision. "We have also assured our OEMs partners that the
government is determined to see this through and they can expect a
stable environment and consistence policy."
Madueke who was elated by the bold step of the Minister of Industry,
Trade & Investment, Dr Olusegun Aganga said the benefit derivable from
the new policy include foreign direct investment, strengthening local
manufacturers, development of auto components, skill acquisition,
creation of employment creation of wholesome industrial development.
Amplifying the support for government, Senator Sanusi Daggash said the
thrusts of the new auto policy are to encourage investments, enhance
technological development and revive production activities in the
He believed that the new policy has put auto manufacturers on their
toes to compete beyond the shores.
He said: "We do not only have the international market to contend with
but the African market as well. The thing that government has done is
to put us in a position to compete with any manufacturer or assembler
anywhere in the world.
"The fact is that we go to the same companies to get the Completely
Knocked Downs, CKDs. CKDs mean automobile that is imported or exported
in parts and not as one assembled unit.
"Such units are first sent to an assembly plant in the target country
where all these parts are assembled into one complete car. "This
policy is not exclusive to us as manufacturers but to everybody, the
consumers, traders who import and manufacturers. The essence is that
we are now trying to put a formal foundation in place where we can
enhance the industrial sector to grow the economy.
"The logistic of moving things from one place to the other is the
driver of any economy but we known the issue of health, safety,
infrastructure challenges, lost of lives. And now we are shifting from
the so called second hand to improving the quality of what we can
deliver to the average person in the country.
"We are not to boast that we can manufacture Rolls Royce but we are
looking at what kind of market Nigeria has, We have people who are
graduating from school, we have traders and we have people in the
informal sector, and if we have to grow the GDP of this country, we
have to increase the productivity of every aspect that enhance that
aspect of our economy and automotive sector is the key component in
driving the economy