The National Automotive Council (NAC) is collaborating with the United Nations Industrial Development Organisation (UNIDO) to fine-tune the concept for a made-in-Nigeria car. However, the Council's discussion with UNIDO on the concept is being delayed due to the absence of a legal framework for operation. The Council said on Friday that unless the auto bill currently before the National Assembly is passed into law, the Nigerian auto industry will remain inactive.
Aminu Jalal, the Director General of the Council, who gave this hint in Abuja, expressed disappointment that till date, the concept of made-in-Nigeria car has not materialised because of the non-passage of the bill. Mr. Jalal said the absence of a legal framework for effective implementation of an already developed design, which is expected to revitalise the sector, has been a challenge.
"Once the bill is passed and the budget proposal before the National Assembly is passed, we will come up with the concept of the made-in-Nigeria car with a road show," he said.
The automobile needs of Nigeria can only be met when all the stakeholders in the industry work towards meeting international standard, Mr. Jalal said, adding that the agency's main focus is to encourage local manufacture of auto components. The council is equally wooing Nigerians in the Diaspora, who have indicated interest in investing in the manufacturing of auto components and ancillaries.
Unlike other emerging economies, Nigeria is yet to witness a revolution in its automobile industrial sector. As at today, the dream to have a made-in-Nigeria car has remained exactly that - a dream.
Challenges
But for the Structural Adjustment Programme (SAP) introduced during the regime of former military president, Ibrahim Babangida, which led to the devaluation of the Naira and resultant rise in importation as against export, the automotive sector would have been a beehive of activities today, reasoned Mr. Jalal.
Other challenges faced in the development of the sub-sector, including manufacture of spare parts, is the absence of a conducive environment for this level of operation and lack of incentives to encourage local production.
The absence of local source of raw materials is also a factor. If the Ajaokuta Steel Company is functional, this would have been addressed since it will provide the raw materials to aid not only local manufacturing of cars but also the components, he observed.
The council, therefore, appealed to the Federal Government to respond positively to all the identified hindrances to the development of the sector.
The Council boss explained that the National Auto Fund, which is about N20 billion has been stopped since 2007. The fund, he said, is to assist relevant stakeholders who have viable products to offer but have no fund to execute them, stating that as a way of reintroducing the tariff policy as included in the new bill, the council has decided to expunge the collection of the tariff from auto component dealers since that is the sector targeted for development, to facilitate the growth of the entire auto industry.
On what the legislators are doing to facilitate the passage of the bill, Chairman House Committee on Industry, Solomon Agidani, said work is in progress.
"The bill has passed the second reading and we had just held a public hearing on it and at the moment the final report is being prepared so in a matter of weeks we hope everything will be in place," Mr. Agidani said.
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