By Franklin Alli with Agency Reports
The National Automotive Council of Nigeria, said it needs N50 billion from the federal government   to  build local capacity for the production of made-in-Nigeria vehicles.

The Chairman, Board of Directors, NAC, Alhaji Yahaya Mafindi, who disclosed this said  that the money will be used to provide specialised  training  for indigenous automobile mechanics  as well as equip institutions of higher learning across the country in the area of automotive engineering and technology.

“There is an urgent need for the Federal Government to create an intervention for the auto sector. This will motivate growth in the industry to its potential of  job creation and technology acquisition.

“ The National Automotive Council needs an intervention fund of about N50bn to  train and provide special grants for talented mechanics and also  to equip higher institutions in automotive  engineering and technology,” Mafindi said.

According to him, the Federal Government should, as a matter of priority, review its fiscal and monetary policies to engender enhanced growth and development of the auto industry.

“Developing and developed  countries use fiscal and monetary policies to encourage local production and discourage massive importation of vehicles into their countries. Ironically, our current fiscal policy does the reverse by encouraging importation  and discouraging production of made in Nigeria vehicles,” he said.

However, the  Director General , NAC, Mr. Aminu Jala , stated that as part of efforts to promote auto engineering , training , skills acquisition and  capacity building in the auto industry, NAC has acquired and distributed  automotive diagnostic equipment worth N54 million to six institutions in Nigeria.

They are : Federal College of Education, Gombe; Kaduna Polytechnic; Federal Science and Technical College , Orozo, Abuja; National Metallurgical Training Institute, Onitsha; Rivers State Polytechnic, Bori and Lagos State Polytechnic.

He stressed that there was urgent need to fast-track the implement a tariff deferential policy in order to encourage  the establishment of local car  assembly plants.

“Our own experience and that of other countries that developed their automotive  industries indicates that we need to  implement a tariff deferential policy in order to create an enabling environment that would bring in more investments into the sector and further encourage locally assembly of vehicles.

“  The Federal Government should consider tariff as a measure to increase local capacity and not as a revenue generating instrument. The tariff structure must reflect the very nature and direction wants to steer economic activities. An ideal tariff structure must take into cognizance all incentives and concessions which should have a long term positive effect on local manufacturing.”