AS more auto companies shut their assembly plants in Nigeria, local assemblers have blamed the Federal Government for making vehicle production and the general business environment unfriendly for indigenous manufacturers.

They spoke at a recent interactive forum in Abuja, where auto chief executive officers and relevant Federal Government ministries and agencies MDAs met to assess the state of the nation’s auto industry and the way forward.

The auto assemblers accused the FG of luring many investors into setting up auto assembly plants in Nigeria after the introduction of auto policy in 2014 but failed to sign the enabling bill into law to support the business.

They also claimed that the Finance Act of 2020 introduced by the FG that reduced import duty on fully built vehicles to the same rate as Semi-Knocked Down components made it difficult for local assemblers to compete with FBU importers/dealers.

Deputy Managing Director of CFAO Motors, Mr. Kunle Jaiyesimi, said, “We wasted millions of dollars in a world-class assembly plant for buses and trucks. Virtually all leaders of government agencies that visited the plant then were amazed by what they saw. Today, we’ve converted the plant to after-sale centre.

“There is no way we can compete with fully built vehicles that are coming into the country. Before, the import duty on FBU truck was 25% and suddenly it was dropped to 10%, the same rate for SKD components of truck.

He also accused policymakers of jumping out of the country to hold meetings with vehicle manufacturers without discussing with Nigeria’s representatives of those foreign companies.

He said, “We should not be thinking about estacode (travel allowance) in most cases. We should look at how things can work in this country.

“What is the fate of the auto policy now? When this initiative started in 2014, some of us raised concern then that it is not enough for some people to just wake up and put up a position paper about the industry without consulting widely the industry players and stakeholders.”

Executive Director, Nigeria Automotive Manufacturers Association, Remi Olaofe, wondered how the local auto assemblers could break even without any serious support and patronage from the government.

“Nigerian auto operators are doing their best but they are not being encouraged at all. No single tyre is being manufacturer in the country since the exit of Dunlop and Michellin. How do we bring them back? What do we tell them? Nobody is in business to make losses. I do business to make money, not on sentiment.

“Many have invested billions in this auto business and we are not doing anything to support and keep them in business.”

Olaofe accused the Nigeria Customs Service of being “a pain in the neck of this business,” adding that they had practically ruined the business.

“Look at all the auto assembly lines of the plants in the country, they are virtually idle. People are allowed to cut corners and play the trick of winners take all and many are shut out. Nigeria ultimately loses. We don’t have correct industry data because of unhealthy rivalry in the business,” he said.

He also said, “The NADDC will not allow NAMA to function because NADDC is deriving pleasure in assemblers coming directly to it for aid. The Ministry of Finance will not allow NAMA to work because it wants operators to come to them individually with their problems so they could be ‘appreciated’.

“Look at Rwanda, they have overtaken us. What is the population of Ghana? It is now the toast of auto manufacturers and allied products’ investors. Every single auto assembler now is on its way to Ghana. “There is no need lying to one another. If we must develop the nation’s auto industry, we should do so genuinely.”

Chief Executive Officer, Nord Automobiles Limited, Oluwatobi Ajayi, said the country’s approved plants had the capacity to produce sufficient number of vehicles to cater for its immediate need only if there would be continuous patronage, duty and tax incentives.

For instance, he said his assembly plant currently producing five vehicles per day would be able to increase the number to 25 vehicles with the right support and raise it to 50 per day with two shifts.

https://www.vanguardngr.com/2022/08/auto-makers-knock-fg-as-more-firms-shut-multi-billion-naira-plants/


Nlfpmod

People will promise Heaven and earth during electionary campaign and do another when elected into power.

They have started again with their empty promises, as if they're talking to foo!s

Ordinary car plant is a problem for roughly 8 solid years now

Spit

Bastard.

Mr Kunle Jaiyesimi- (Deputy Managing Director CFAO Motors)

Oluwatobi Ajayi - (Chief Executive Director Nord Automobiles)...

If na Innoson now dem go say Igbos dey cry marginalization....now Kunle & Ajayi don dey close shop cox of unfriendly government policies & low patronage.

Nice one, the emi lokan will give the youths agbados and cassavas to be selling...

The would stop imports but won't do well in growing home brands, Government go wan frustrate them with debt

And the bent old man wants to continue from where the lifeless and clueless Buhari wants to stop ...

And some good for nothing youths will come to this forum to campaign for them..... Having a Muslim VP that has a connection with Boko Haram is a difficult choice from a so called strategist...

Hope Uzodinma is insisting that Innoson Motors must have a branch in Owerri before he pays the automaker the billions he owes them. However, the same man doesn't give that condition to Benz and Toyota when they buy their products.

Even the simplest things that others do in other parts of the world without uttering a word becomes complicated and impossible when it gets to this convoluted contraption called Nigeria.

All I can say is that most Nigerians - both young and old - are terrible people. When I hear NTA call Nigerians good people, I often wonder if it is the same Nigerians I know or some Nigerians who live in heaven.

This country failed because positive family values collapsed.

Hmmn

ok..can someone pls summarize.
it's too early for this epistle.
my sigi is short

and Tinubu wants to continue from where Buhari stops.


GOD FORBID APC again!

OBI is coming 2023.............get yhur PVC!

This government has been deceitful right from the onset.
They promised heaven on earth, only to lure Auto makers into spending billions on now redundant facilities.
APC and lies can never be separated.

With this level of electricity, why won't they leave


Meanwhile kindly lend your words on this thread
https://www.nairaland.com/7288864/ASUU-strike-ASUU-paid-nigerian#115843803

U mean motor assemble plants

buhari has made very bad economic policies on all fronts.

Epic failure.

Okay

Look around you,anyone still supporting APC,just refer them to a Psychiatrist for evaluation.

temitope27:
U mean motor assemble plants

it's not easy too.

so sad, that more citizens joining the unemployment market

Useless government

Islie:


https://www.vanguardngr.com/2022/08/auto-makers-knock-fg-as-more-firms-shut-multi-billion-naira-plants/


Nlfpmod

They are building 2nd Niger Bridge
APC is the most uneconomical friendly government. Only collecting taxes and rent

OkpaNsukkaisBae:
Mr Kunle Jaiyesimi- (Deputy Managing Director CFAO Motors)

Oluwatobi Ajayi - (Chief Executive Director Nord Automobiles)...

If na Innoson now dem go say Igbos dey cry marginalization....now Kunle & Ajayi don dey close shop cox of unfriendly government policies & low patronage.

. Innoson is their main target if you get sense

OkpaNsukkaisBae:
Mr Kunle Jaiyesimi- (Deputy Managing Director CFAO Motors)

Oluwatobi Ajayi - (Chief Executive Director Nord Automobiles)...

If na Innoson now dem go say Igbos dey cry marginalization....now Kunle & Ajayi don dey close shop cox of unfriendly government policies & low patronage.

what are u saying bro?

Rebuke:
and Tinubu wants to continue from where Buhari stops.


GOD FORBID APC again!

OBI is coming 2023.............get yhur PVC!

u go chop ur shit in 2023

When Richard Branson moved his companies away from Nigeria, when he was asked, he said "Nigeria policies is not favorable to businesses".

Dunlop, Michelin, and many more companies left Nigeria and are now importing to Nigeria.

Unemployment keeps rising.

We have leaders who keep making policies that don't favor investments.

You will see in news, "Buhari travels to woo investors ", Okay... The guy is not even aware that the system he has in his country can't favor a business.

So when we tell you that we need a business man and an economist to rule Nigeria at this time, don't think we're being sentimental.

If you hear PO speak about business, you will understand that how government treats businesses here and how they do in other countries is not the same.

Believe me, if we continue like this, more companies are still going to shut their plants and leave Nigeria.

So, if you think voting PO means doing "nyamiri" a favour, my brother my sister think again.

It bests my imagination that some Nigerians are still supporting APC.
I guess INEC should sponsor a bill for mental evaluation to be a criteria for voter accreditation.