NAC boosts automobile accessory production with N11.5 bn, says DG

DG NAC, Aminu Jalal
The Director-General, National Automotive Council, Engr. Aminu Jalal, has disclosed that the council had disbursed N11.5 billion to 32 companies, to boost production of automobile accessories in Nigeria.
These accessories include brake pads, oil filters, and bumpers among others.
The director-general made the disclosure at a news briefing in Lagos while reiterating government's plans to develop and sustain the industry.
" From the N22 billion generated from the 2 per cent auto import levy collected from 1994 to 2007, we have disbursed N11.5 billion from 2007 till date.
" It is noteworthy that the Council was given N15 billion of the amount as government had utilised about N7 billion.
"It will interest you to know that our interest rate dropped from 11 per cent to 7.5 per cent and the funds are properly managed, which has made it possible that a quarter of the loans have been returned,” he said.
 Jalal said that government’s resolve could be backed with the fact that the local cement production had grown tremendously from 2 million tonnes to 30 million tonnes in the last decade, while it did not have to wait for all infrastructure to be on ground.
With reference to financing for the automotive plan, Jamal said progress was on to sign a Memorandum of Understanding with a South African bank renowned for investment-friendly loan, to actually sustain the effort.
“Loans for this plan will be given to investors at a single-digit interest.
" Besides that, we will be giving an graded level incentive to encourage investment into the scheme.
"Investors can begin at entry-level, which is SKD 2, phase 1 and then, phase 2 until they graduate into the CKD level which requires huge investment."
He said that for the entry-level investors, they would enjoy a 'one-for-two' incentive. Meaning that for assembling one vehicle locally, an investor would enjoy importing two of same kind at no levy attached.
The director-general however noted that the council would emphasise strongly on quality and standard obtainable anywhere in the world.
"For encouraging local content, 23 companies have already indicated interest and they have started building their facilities.
" But, it is also made known that participating will involve meeting the standards, ability to meet up with quantity request and timely too, “he said.
He added that a lot of manpower training had been done through the SURE-P and development of programmes to suit courses already being offered in the university system.
While stating that automobile companies have indicated partnership interests in the plan, he disclosed that Toyota Motor Company advised that the automotive policy be legislated for better assurance of its sustainability.