By Tony Obiechina, Abuja
Minister of Finance Budget and National Planning, Mrs Zainab Ahmed has commended Innoson Vehicle Manufacturing Company Limited for its relentless efforts in the local manufacturing of automobiles in the country.
The Minister who spoke at the commissioning of three new automobile assembly plants of Innnoson Vehicle Manufacturing Company Limited in Nnewi, Anambra State said it was gratifying that the “Innoson Brand” which is proudly Nigerian has blazed the trail in automobile assembly under the National Automobile Industrial Development Plan (NAIDP).
She congratulated the Government the people of Anambra State and proprietor of Vehicle Manufacturing Company, Chief Innocent Chukwuma “for this commendable and laudable feet towards creating jobs, growth and investment in Nigeria”.
The Minister who noted that Nigeria should be able to produce what it consumes, however disclosed that while the country’s annual vehicle demand is put at about 720,000, local production currently stands at about 15,000.
“This is not encouraging, as this means that we have to rely on imports to meet the demand for vehicles which cannot be met by the upcoming local automobile industry”, she frowned.
According to Mrs Ahmed, out of about fifty companies that were recommended by the National Automotive Design and Development Council (NADDC) her ministry to be given recognition as bonafide automobile manufacturers/assemblers, and to be allowed to import Completely Knocked Down and Semi-Knocked Down (CKD/SKD) components at 0% and 10% duty rates respectively, only about 15 are currently into active production.
The Minister said, “I am glad to see that Innoson Vehicle Manufacturing Company Limited is striving relentlessly to be part of our local manufacturers. In line with the aspirations of achieving government’s 2021 budget objectives, bold, decisive and urgent actions would be taken where necessary to address some of the challenges of the Nigerian Automotive sector.
“In this regard, and to further encourage and nurture the Nigerian Automotive Industry to growth, Mr. President has directed that all vehicles to be purchased under approved Federal Government budgets, should be procured from locally assembled vehicles. Other tiers of government are also inspired to do the same. This is in order to stimulate growth of the industry through patronage which will sustain jobs locally rather than keep them abroad.
She stated that as part of the key principles underpinning the Finance Act, 2020, “we shall continue to foster closer coordination of Monetary, Trade and Fiscal Policies. This is to ensure that we continually endure and evolve fiscal and monetary policies to enhance the growth and development the Nigeria’s economy, especially the automotive industry.
“To put in perspective, the affordability of locally manufactured vehicles for the Nigerian citizens would require support for the vehicle purchase scheme under NAIDP. We shall therefore initiate discussions with relevant authorities towards means to support the scheme to promote consumer credit and financial inclusion”.
She announced that the Ministry has put in place a Vehicle Registration (Vreg) Portal, to ensure that every vehicle imported or manufactured locally is captured in a Central database, using the 18 – digit Vehicle Identification Number (VIN).
This, according to her “is to help tackle smuggling and forestall leakages in government revenue from evasion of import duty payment on all vehicles”.
