Motoring

October 7, 2014

Auto Policy: NAC plans local content policy

Auto Policy: NAC plans local content policy

Economy

By Theodore Opara

The Director General of the National Automotive Council, Engr. Aminu Jalal has disclosed that a local content policy will be launched next year to support the new auto policy in Nigeria. Engr. Jalal stated this recently during a chat with Motoring journalists at Sheraton hotel Ikeja, Lagos.

He reiterated that the country’s newly formulated Automotive Industry Development Plan is still on track and being pursued despite hiccups experienced in its implementation so far.

It would be recalled that the new auto policy meant to develop the industry and related sectors, was introduced by the federal government one year ago.

Jalal, along side the Director of NAC in charge of Policy and Planning, Mr. Luqman Mamudu, spoke with journalists recently in Lagos. He also called on Nigerians to give VON of Nigeria, promoted by the Stallion group, and others who have taken the initiative to do local auto assembling, a chance to improve on their moves.

In recent times, the Stallion group has come under criticisms following the unveiling of its Nissan Patrol vehicle, which it claimed was locally assembled in Nigeria. Observers reasoned that the vehicle was more or less imported Fully Built than locally assembled.

But throwing light on this, Jalal stated that local auto assembling is currently categorised into CKD (Complete Knock Down) and SKD (Semi Knock Down). According to him, the SKD is further divided into SKD 1 and SKD 2, even as SKD 2 is broken down into phase 1 and phase 2.

The DG explained that VON Nigeria’s locally assembled Nissan Patrol, a unit of which is displayed at the Murtala Mohammed Airport 2, has only complied with the SKD 2 category phase 1, with plans to move into the next phase.

Jalal also revealed that though many international auto makers have indicated interest to take advantage of the new auto policy, many others may still be foot dragging, while awaiting the outcome of the bill on the policy currently before the National Assembly.

Also, as part of measures to boost the sales of locally assembled vehicles, it was revealed that NAC was working out modalities to float a car purchase scheme for this category of vehicles.

According to Mamudu, the scheme will involve a South African financial institution as well as some Nigerian banks. The aim is to make the vehicles available at single interest rate.

Moreso, the federal government, with intent to revive the activities of auto component manufacturers, had given N11.5 billion loan to 32 companies to assist them in production, the Council added.

It was also revealed that the council was working with state governments to acquire land “where we can set up clusters for the manufacture of spare parts, particularly in industrial estates. We already have offer from Osun, Delta and Cross River, we are working to get land in Kaduna, Lagos and Anambra where we already have automobile operations.”

 

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