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Uncertainty as new policy compels MDAs, contractors to buy Nigeria-assembled vehicles

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Uncertainty as new policy compels MDAs, contractors to buy Nigeria-assembled vehicles

All government ministries, departments and agencies as well as companies working on government contracts will henceforth be compelled to buy locally produced vehicles in line with the provisions of the 2023 automotive policy.

The National Automobile Design and Development Council (NADDC) stated this as part of the gains of the revised policy aimed at increasing local content of vehicles produced in Nigeria to 40 per cent.

This is contained in the highlights of the just approved 2023 Nigeria Automotive Industry Development Plan obtained by Newstrends on Tuesday from the NADDC website.

It stated, “The new approved NAIDP is aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40% local content, attaining 30% locally produced Electric Vehicles, generating 1million jobs, enforcing patronage of locally produced vehicles by government and companies working on government contracts, and also boosting R&D and technology transfer.”

But auto industry players are disappointed that the decision is coming barely two weeks to the end of this administration.

They lamented that their multi-billion naira investments in assembly plants had been in doldrum due to policy summersault and change of government.

“It is uncertain that the incoming administration will not jettison the policy or embark on a fresh review,” a chief operating officer of a frontline auto firm told Newstrends.

Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, at the end of the Federal Executive Council meeting last Wednesday announced the new 10-year national automotive policy that would span 2023-2033.

He said the new policy would explore how the automotive industry could migrate seamlessly from combustible engines to electric/solar-powered engines.

He said it was an improvement over the 2013 Nigeria Automotive Industry Development Plan, introduced by the Goodluck Jonathan administration when Olusegun Aganga was industry minister.

Although many approved auto assembly plants had promptly jumped into operation then, producing semi-knocked down (SKD) automobiles and taking advantage of the zero duty regime on imported components, their business later drastically went down largely due to low patronage.

The auto industry bill also failed to get President Muhammadu Buhari’s assent and was returned for a review, expecting to get more stakeholders input.

Speaking on the new approved policy last week, Minister Adebayo said, “The whole idea is to bring it up to date with current realities. Also, to put our auto industry on the proper footing, I don’t know if you are aware that we have capacity today to assemble 400,000 vehicles.

 

“One thing that happens to the auto industry is that when the assembly or companies move into a country to make that investment, which can be anything between $300 to $400 million for the assembly plant. What happens is that the makers of the components that go into the manufacture of these vehicles also move to that country to set up competent baking factories.“

But many auto assemblers and other players in the nation’s automobile industry are not happy that vital decisions concerning the sector would come in the twilight of the administration.

They told Newstrends that nobody was sure if the incoming administration would implement the new policy.

“As we speak, no law is backing all these proposals, thus putting our huge investment in assembly plants in jeopardy,” said a major player.

Managing Director of R. T. Briscoe, Seyi Onajide, and MD, BKG Exhibition Limited, Ifeanyi Agwu, are of the view that auto policy without component makers would amount to putting the cart before the horse by starting.

“The local content suppliers must be in place first before you now talk of having car assembly plants,” said Onajide in a recent interview with the Nigeria Auto Journal 2023 édition.

He added, “If they are not on the ground, then we are just deceiving ourselves. We need to learn from our past mistakes.”

Director-General of the NADDC Jelani Aliyu, however said everything had been perfected to get the necessary approvals for the policy to become a bidding law.

Uncertainty as new policy compels MDAs, contractors to buy Nigeria-assembled vehicles

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Appeal court takes over NURTW case as NIC withdraws

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Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.

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19 passengers burnt to death in Okene Bypass accident, FRSC blames traffic violation

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FRSC blames traffic violation as 19 passengers burnt to death in Okene Bypass accident

A total of 19 people were burnt to death in a tanker-bus collision on Sunday April 28 on Okene-Lokoja highway in Kogi State.

The collision that specifically occurred on Okene Bypass reportedly led to an explosion, trapping a total of 22 passengers in the inferno.

The Federal Road Safety Corps (FRSC) in a statement which gave these details said the crash was largely caused by traffic rules violation.

It added that its emergency rescue team deployed in the area battled the situation for three hours.

Part of statement read, “The crash investigation report revealed that the crash involved two vehicles comprising a Dangote truck bearing the following registration details NSH680YJ, and a Toyota Hiace Bus with registration number KMC455ZE.

“The Toyota Hiace bus loaded from Kano was on its lane on the highway when the Dangote truck driver who drove all the way from Port Harcourt wrongfully overtook a vehicle and collided head-on with the bus.

“The impact of the collision resulted in a fire inferno that burnt the victims to death.

According to the report, the crash which was caused by route violation ‘One-way’ and wrongful overtaking, involved 22 people all male.

“Unfortunately, 19 people out of the 22 victims were killed and one injured.

“The remaining two victims who got rescued by the FRSC operatives without injuries survived the crash because they complied with traffic regulations on compulsory use of seatbelt.

“The corpses of the dead victims have been deposited at Okene General Hospital.

The statement signed by the FRSC spokesman, Jonas Agwu, an Assistant Corps Marshal, recalled that the Corps Marshal of the commission, Dauda Biu, at a press conference last week Thursday “warned against traffic violations citing instances where they resulted in avoidable crashes with fire outbreak, leading to wanton loss of precious lives and destruction to properties.

“As a result of that he had earlier emphasised on the need for maximum penalty for these drivers.

Dauda Biu reaffirmed the resolution of the Corps to continue its ongoing prosecution of drivers who by their actions cause road traffic crashes in Nigeria, noting that the driver of the truck involved in the Okene crash will not be an exception.

“As such, he called on the judiciary, leadership of transport unions and other relevant stakeholders in the road transportation sector to join hands with the Corps towards restoring sanity through speedy and effective prosecution.”

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Chery celebrates automobile excellence, creativity at Lagos roadshow

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Chery celebrates automobile excellence, creativity at Lagos roadshow

Chery Nigeria on Friday held many Lagos fans of elegant new vehicles spellbound during its spectacular roadshow.

The event featured a captivating procession from the Carloha showroom to The Palms in VI passing through scenic routes such as the Third Mainland Bridge, Ikoyi and Victoria Island, ending with a celebration at the iconic shopping mall.

The roadshow not only showcased Chery’s exceptional vehicles but also celebrated the spirit of creativity and community.

The event provided a platform for guests to savour and enjoy the unique display of new work of art and automotive excellence.

The roadshow extravaganza, as the organisers called it, was revealed Chery’s commitment to engaging experiences, showcasing the brand’s latest masterpiece, the Tiggo 8 Pro,Tiggo 4 Pro and Arrizo 5, in an unforgettable way.
The highlight of the event was a unique “Sip and Paint” session led by a notable artist, who skilfully captured the essence of the Tiggo 8 Pro on canvas.

Guests were invited to unleash their creativity as they painted their own interpretations of the iconic Chery logo, adding personal touch.
The climax of the evening came with a breathtaking moment as Eben, renowned for his impressionistic prowess, unveiled his masterpiece – a stunning portrayal of the Chery Tiggo 8 Pro.
The artwork, met with awe and admiration from attendees, encapsulated the essence of Chery’s dedication to innovation, style, and sophistication.
Representative of Chery brand in Nigeria, Carloha, says it will continue to provide automotive solutions to  customers with its six-year free service and six-year warranty or 200,000km, whichever comes first.

Meanwhile, Chery has expressed its gratitude to all attendees, partners and supporters who contributed to the success of this extraordinary event.
“As the brand continues its journey of innovation and inspiration, it remains dedicated to delivering exceptional experiences that captivate hearts and minds,” the firm said in a statement on Saturday.

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