…As support fund for vehicle production finance scheme hits N11bn
Indications have emerged that a N300bn boost for the local auto industry in the country is underway.
This is coming as a support fund initiated by the Federal Government to facilitate vehicle production finance scheme has risen to N11bn. The developments are part of the bold moves by the Federal Government to accelerate the development of the automotive industry in Nigeria.
Director-General, National Automotive Design and Development Council, Jelani Aliyu, gave the indications at a forum in Lagos, saying the fund would “support assembly operations at the Completely Knocked Down level and encourage local content development.”
Aliyu, who spoke on a topic, “Achieving 2013-2020 Nigerian Automotive Industry Development Plan under the current regime: How feasible?”, said presently, the auto industry activities were largely characterised by the Semi-Knocked Down operations with limited employment generated.
He disclosed that the Federal Government was worried by the slow pace of development in the auto industry even though government had given 35 automobile firms “bona-fide manufacturing status” while many of them have started assembly operation.
The new developments are coming about five years after the government commenced the implementation of the Nigerian Automotive Industry Development Plan that was meant to encourage local production and purchase of new vehicles .
Aliyu, who spoke at the forum through the Director, Special Duties at the NADDC, David Oyetunji, said the auto support fund was an indication of government’s resolve to providing the necessary encouragement for the development of the auto sector.
“The automotive industry is the cornerstone for establishing a self-sustaining economy and upgrading the standard of living both in the developing and developed economy. It is a major instrument for economic growth and development, which “serves as an important stimulus for other types of manufacturing activities such as iron and steel, rubber, plastics, electrical equipment, road construction, transportation, urban and rural development,” he said.
