… Dangote SinoTruck Decries Nigeria’s Forex Crisis
The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, Wednesday said a review of the nation’s auto policy will soon be sent to the National Assembly as an executive bill for speedy passage.
The Minister who was represented by the DG Automotive design and development council, Mr Jelani Aliyu stated this in Abuja at the opening ceremony of the 22nd edition of the annual Abuja International Auto Fair.
He said the policy known as National Automotive Industry Development Plan (NAIDP) which was introduced in 2014 by the Federal Government to encourage local assembling of vehicles was sent back for review as Buhari failed to give his assent even though the lawmakers had passed the bill.
He further said all stakeholders including relevant government agencies and private sector players were allowed to make input in the latest review.
“This bill now at the Federal Ministry of Industry, Trade and Investment will be going back to the National Assembly as an executive bill and it is expected to receive express passage and president’s assent.
“It is a holistic review; we’ve asked all stakeholders to make input.”
On their part, Dangote SinoTruck West Africa Limited, decried the country’s forex Crisis lamenting that exchange rate has recorded 35% increase within a short period.
Adeola Adeokun, the company’s Deputy Manager, Sales and Marketing, called on government to intervene to check the high forex rate in order to save local production of goods including vehicles.
According to him, the development is giving undue advantage to companies importing fully built vehicles while making things difficult for the those that create jobs.
“As today there is economic challenges allover and we are part of the global market. This event is part of what provide opportunity for us to showcase our products and from what we are seeing now, we can say the patronage is very low this shows that we need to rejig the economy. But a lot of our trucks are on the road, people are buying but we still need to do more.
“Most particularly, we need government to intervene in the area of Foreign Exchange or Forex, because now, we assemble, we manufacture, before now, forex was at 10% but now they have raised it to 35%. And don’t forget that we are competing with other companies bringing in the same type of products, so it is more cheaper for those that bring in the products from outside. And because we assemble we create jobs, we have so many staff, we pay overheads. So in a nutshell, the government need to make the forex more accessible and available to us being the manufacturers” he said.
In his capacity as the NADDC DG, Jelani Aliyu said the auto industry remained crucial to the development of the nation’s economy, adding that the agency was on course with the NAIDP as a tool to transform the industry, despite its implementation challenges.
According to him, many automakers including Toyota and Volkswagen have agreed to set up plants in Nigeria after their conviction in the merits of the auto industry plan.
He said over 30,000 Nigerian youths had been training in modern auto technology, just as he disclosed that 18 auto training centres were established across the country for this purpose.
Jelani appealed to Nigerians to patronise Nigeria-assembled vehicles to increase job creation and boost auto business in Nigeria.
Chairman Organising Committee for Abuja auto fair and Managing Director of BKG Exhibition Limited, Ifeanyi Agwu, said the annual event has played a major role in the development of the nation’s auto sector with Abuja as a viable business centre.
“About 98 per cent of auto companies in Abuja today were brought into the city through the motor fair.”
He lamented the prolonged neglect of the industry by the government despite its importance to the national economic growth.
“I don’t know how the auto companies are able to stay afloat in the face of high exchange rate among other challenges,” he said.
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