Business

March 27, 2012

NGSL warns FG on bilateral agreement with China

By PROVIDENCE OBUH

Nigeria Gas and Steel Limited (NGSL) has petitioned the Minister of Aviation and the FCT to duly consider local manufacturers on the four new international airports in the country and the light rail system projects between the Federal Government and the Chinese Government.

Managing Director, NGSL, Mr. Hasib Moukarim, condemned the bilateral agreements that encourage donor countries to import all materials needed for sponsored projects in the country especially where there are quality local substitutes.

“I appeal to the Minister of Aviation and the Federal Capital Territory Minister, Princess Stella Oduah and Senator Bala Mohammed, to duly consider local manufacturers in these projects, otherwise the strides of the government to generate employment, encouragement of Foreign Direct Investment (FDI) and the Nigerian industrialisation will remain a mirage.

Government is the biggest spender on capital project and the move negate government made-in-Nigeria policy. The right to donor countries should not be total as a reasonable percentage should be reserved for the local manufacturers,” he stated.

It will be recalled that recently there was an agreement between the Federal Ministry of Aviation and the Chinese government whereby the Chinese government is offering substantial loan to the government of Nigeria to build four new international airports in the country and light rail system in Abuja.

Contrary to claims by some that made-in-Nigeria goods are inferior, Moukarim explained: “Nigeria Gas and steel companies in Nigeria has over 30 years been a major producer of high quality steel pipes for the furniture and construction industries.

He added their products have the quality seal of Nigeria’s regulatory bodies because the products comply with international standards.

“With more patronage the demand for these made-in-Nigeria goods will increase simultaneously. This in turn will shoot up the production capacity of local manufacturers. And in an effort to meet the increased demand, the local industries will obviously engage more skilled and unskilled Nigerians.”

To this end, he commended the efforts of the current Minister of Trade and Investment, Dr. Segun Aganga, over his move to sponsor a bill that will enforce the compliance of patronage of made-in-Nigeria goods.

“This policy which he (Aganga) described as a “stimulant policy” has a twin advantage of stimulating industrial growth as well as creating job opportunities for Nigerians.”

He noted that the long term benefit of the policy is that the present high rate of unemployment will drop and government at all levels will reap more tax benefits.

“This is a laudable policy that is long overdue in a country that had attained independence 51 years ago and as long as this policy is in abeyance, the industrialization of this country will be a mere imagination,” he said.

Exit mobile version