…Mandates FG Ministries, Others to Acquire Locally-Assembled Vehicles
[dropcap]C[/dropcap]ontrary to the fears expressed at certain quarters across Nigeria, after the recent general election, the federal government has affirmed its commitment to the continuity of the Nigerian Automotive policy.
Director General of National Automotive Design and Development Council (NADDC), Engr. Aminu Jalal made the disclosure in his office in Abuja while receiving a group of Chinese investors from the world’s largest manufacturer of high capacity buses, Zhengzhou Yutong Buses Company Limited, led by a director of the company, Mr. Michael.
According to Engr. Jalal, President Muhammadu Buhari had repeatedly emphasized Federal Government’s determination to diversify the economy through promotion, support and protection of local industrial production in all areas that the country had sufficient capacity, including the automotive industrial sub-sector with its potential for mass employment.
On patronage, the NADDC boss stated that Federal Government is committed to the patronage of Made-in-Nigeria automobiles, adding that all Federal Ministries, Departments and Agencies were mandated to source their vehicle procurements from local assembly plants except where the specification of the required vehicle was not among the range of models being produced by the various brand names in the country.
“We have the assurance of government’s patronage at the Federal level and we are still talking to state governments to appreciate the benefits of buying from our local producers – the products of our local plants are of very high quality and standards, they have readily available service parts, they have after-sales service and they are cheaper because of the tariff differentials with the imported FBUs.” He assured.
Engr. Jalal explained that while the tariff for FBU imports outside NAIDP is 35% duty plus 35% levy for cars and 35% duty for commercial vehicles, import tariff for investors within NAIDP range from 0% to 10% for CKD and SKD assembly operations while concessionary FBU imports within NAIDP would be at 35% duty for cars and 20% duty for commercial vehicles.
“Financially, you will find that it does not make economic sense to import FBUs into Nigeria. The direct effect of the tariff differential makes the locally produced brands relatively cheaper than the imported FBUs of the same brand. Now that we have succeeded to a large extent in bringing back assembly operations into Nigeria, we are now focusing attention on local contents development and quality control.” Engr. Jalal explained.
He added that efforts were now geared towards attracting international Original Equipments Manufacturers (OEMs) to partner with our indigenous entrepreneurs in setting up manufacturing facilities where locally available materials would be used to make good quality vehicle components and parts that can be incorporated into assembly operations.
The Director General emphasized that the Council was collaborating actively with the Standards Organization of Nigeria (SON) to ensure that all the local assembly plants and components manufacturers complied with stipulated quality controls and safety standards with a view to ensuring that Nigerian-made automobiles were not in any way inferior to similar products from reputable plants elsewhere in the world.
The Yutong team was in NADDC Headquarters to seek clarifications and make necessary business enquiries especially in respect to government’s position on the continuity of the auto policy, tariff protection, applicable incentives, products patronage, quality assurance and standards. This is preparatory to its proposed setting up of vehicle assembly operations for the building of high capacity buses in Nigeria.
Presently, imported Yutong buses are in Nigeria for mass transit services especially in Abuja by the Federal Capital Territory Administration (FCTA) and Trade Union Congress (TUC).
The main products of Yutong are high capacity coaches, city buses, intercity buses, school buses and special vehicles. The company is reputed to have successively produced business purpose vehicles, recreational vehicles, blood collection vehicles, physical examination vehicles, ambulances, engineering vehicles, airport buses, aluminium city buses, learner-driven vehicles, products display vehicles, mobile library vehicles, sightseeing buses and other products featuring high technical content, sophisticated product structure and reliable quality to meet the diverse needs of customers and provide customers with best experience.
The Buhari Administration is poised to meet the high expectation of Nigeria,and in doing so the country would witness massive economic progress in the years ahead. Therefore technology transfer is very crucial to the country . There is also an urgent call to ensure there is stable electricity to propel the development The Government should give free hand to investors as to decide where to locate their plants, and the Government should expect to provide a conducive environment to the investors as to make the country a commercial manufacturing hub for the sub region and the continent at large. Nigeria has all it takes to become next China with the right political will . The new administration footstep so far is highly commendable. Buhari should shrink numbers of ministers, and President was right that some minister are just noise maker,and Dr Mobolaji Johnson should not be offended that only very few minister under Jonathan administration perform very well while majority are crook ,and those corrupt minister would soon brought to book. There are still Nigerians who despise Buhari administration due to their corrupt way of life . Unfortunately there is nothing they can do because majority Nigerians stood very firmly with the new administration to root out corrupt public official looter. The automotive policy initiate by Jonathan administration continually yield some positive resul;t ,and expect the new administration to fine tune those policy the Jonathanl administration had laid its foundatin
You are absolutely right. Whichever government is in power, what matters most is our mind and decision to CHANGE. Let every Nigerian eschew tribal and religious sentiment. If this present regime succeeds, it will affect every tribe and tongue positively and even children yet unborn. Patriotism and honesty should be our watchwords from now on. Then victory will be certain.