The Federal Executive Council (FEC) on Wednesday took a bold step towards boosting the nation’s automotive industry by approving a new Automotive Industrial Development Plan.
In principle, Council members also approved gradual phasing out of imported used cars also known as ‘tokunbo’ cars through introduction of a high tariff regime that will compel ‘tokunbo’ car dealers to close shop.
Briefing State House correspondents after the weekly cabinet meeting, Minister of Trade and Investment, Olusegun Aganga, said the new plan aimed at reviving Nigeria’s automotive industry with a view to generating jobs.
According to him, about N445 billion was expended on importation of used cars (tokunbo) between 2010 and 2012, saying the automotive industry when fully revived could generate about 700,000 jobs.
Aganga said Council took cognizance of the factors that contributed to the failure of similar policies in the past before approving the new plan.
The minister also said three automotive clusters would be established in Lagos/Ogun; Kaduna/Kano; and Anambra/Enugu states to share resources and reduce cost of investments.
To ensure availability of the needed manpower, the minister said the Industrial Training Fund (ITF) is working with car-maker, Cena of Brazil, to open automotive training centres in Nigeria while two Nigerian Universities have also agreed to run degree programmes in auto-mechanical engineering.
He spoke further, “A transformed automotive industry will realize its potential as a major driver of economic growth and diversification, job creation, local value addition and technology acquisition. These recommendations were adopted at various fora, conferences and consultations with stakeholders, including some original equipment manufacturers, OEM.
“The Federal Executive Council meeting, presided over by President Goodluck Jonathan also approved that government should direct that all vehicle purchased by government should be from the local assembly plants, unless it is specialized nature and NAC have certified that it is not produced in Nigeria.
“The Council approved that the approved recommendation should be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy”.
Meanwhile, council also approved contracts worth N40.7 billion for roads and engineering infrastructure in the Federal Capital territory (FCT).
According to the Minister of FCT, Bala Mohammed, according to the Minister of Information, the sum of N39 billion was approved for the rehabilitation and expansion of the outer Southern Expressway (OSEX) from Villa Round About to the OSEX / Ring Road 1(RR1) junction including five interchanges, in Abuja.
He said the project which was awarded in favour of Messrs CGZ Nig Ltd will ensure free flow of traffic and significantly reduce travel time in and out of the city.
“The existing segment of the OSEX from the villa roundabout to RR1 is only partially developed with a 2-lane main carriage way and one 2-lane service carriageway as against the 10 lane expressway provided in the Abuja Master-Plan. The OSEX is an expressway that bounds the city on the eastern fringe and provides the major access to the city”.
Also, Council approved contract for the provision of engineering infrastructure to plot 4075, Asokoro extension. The contract for the extension which comprises of 50 plots was awarded in favour of Messrs COAN (W.A) Limited in the sum of N1.7 billion with a completion period of 12 months.
