…Auto makers hail FG’s new policy on patronage
By Vincent Ujumadu
Two auto makers in Anambra State, Innoson Vehicle Manufacturing, IVM, Nnewi, and Kojo Motors Auto Assembly, Umunya, have hailed the Federal Government’s new policy that has made it mandatory for Ministries, Departments and Agencies, MDAs, to patronize locally made vehicles.
Officials of the two companies, who spoke during the visit of board members of the National Automotive Design and Development Council, NADDC, to their facilities in Anambra State, said that with the new policy, there will be more patronage of their products.
Secretary to the Government of the Federation, SGF, George Akume, has already issued a circular directing all government establishments to purchase their vehicles from local manufacturers.
Managing Director of Innoson Motors, Chief Innocent Chukwuma, said during the visit to his facilities that he was particularly impressed with the Federal Government’s emphasis on Compressed Natural Gas, CNG, which, he added, is the easiest way for the Nigerian automobile industry to survive.
According to him, it was to support the CNG project that made his company dedicate its newest massive facility to the production of only CNG trucks and electric vehicles.
He said: “President Bola Tinubu visited some countries and saw the benefits of CNG, and on his return, he began to support it. According to the president’s plan, by next year, there will be CNG plants in all parts of the country because a lot of money has been invested in it.
“With the rising cost of fuel, CNG is the way to go. There is so much gap between the prize of diesel and CNG gas, and that is why we want everyone to embrace it and move Nigeria forward.
“We are investing massively in the automobile industry to make sure that our youths are busy. When the factory is constantly working, all categories of people are benefiting.
“It does not even matter if there may not be so much return on investment. The important thing is that we are helping so many families to survive. As far as the factory is working, I am okay; after all, I was not born with any money. The money we invested here is for the public, and we are happy that they are enjoying it.”
He commended the NADDC for supporting auto makers across the country, adding, however, that there is a need for backward integration in the industry so that companies can specialize in manufacturing products that they have comparative advantage.
The Executive Director of Jojo Motors, Chinedu Oguegbo, informed the NADDC members that his company is focusing on commercial vehicles for transportation in Nigeria, adding that they are beginning to benefit from the Federal Government’s policy on locally made vehicles.
“We brought the facility to where the customers are,” he said. He however noted that there had been serious challenges over the last few years, particularly the massive devaluation of the naira, adding that the fluctuation is such that it has been very difficult to take certain critical decisions.
“We persevered, and we are actually in the first phase of our development. As it is, things are actually stabilizing, and we believe that the next time the board members come, our gas facility will be ready.”
He said that the company’s main brand, Omma Bus being manufactured in its Ununya facility, may soon be exported to the rest of the world, while its natural gas facility would soon come on stream.
The Director-General of NADDC, Oluwemimo Joseph, said the decision to visit the facilities was to enable the board members to get first-hand information on their needs and challenges.
He said:”We know that those who are into production in Nigeria face a lot of challenges. These challenges will be reduced when we interact with the manufacturers and proffer solutions on how to overcome them.
“We are reviewing our policies and putting forward new legislation to ensure smooth operation in the industry. We are therefore here to have first-hand knowledge of the operations to equip us and incorporate into the bill that is currently being prepared what we gather from the manufacturers. We also need to see the products being manufactured and get the experience of their customers who patronize them.
“We are also talking about backward integration and seeing the parts they are using and the ones that others can adapt. There are certain vehicle components that can be produced in Nigeria, and by discussing with the manufacturers, we can cede the products for easy adaptation and then create the market for them.
“In Anambra State, for instance, there are many small and medium enterprises (SMEs) manufacturing various products, and we need to harness them to see how they can fit into the automobile industry’s needs.
“We have also taken note of complaints that the investment is not protected because of the proliferation of imported used vehicles. We know this, and we are taking it to the right quarters, especially as it concerns zero duty on CNG and electric vehicles.”
Chairman of NADDC, Chief Emma Eneukwu, said the board is canvasing for a bill that would control the flooding of the market with foreign used cars, which, he observed, have been destroying the local market and the local vehicle manufacturers.
“We will use the law to protect our local producers so that they can easily sell their products. Because some of these imported vehicles are tax free, our local manufacturers cannot effectively compete with them. That is why we want to liaise with the government to encourage them.
“We also encourage the manufacturers to move a step higher to be able to compete effectively in the auto market. There could be a few components that could be imported, but we should be able to have our locally manufactured parts that should be used in the manufacture of vehicles.
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