Business

November 4, 2010

EML gives clues to revival of auto plants

The Chief Executive Officer, Executive Motors Limited (EML), Dr. Ayodele Ogunsan, has suggested how the moribund local vehicle assembling plants across the country can be revived through Public-Private sector partnership.

Auto plants in the country that have been yearning for revival and for patronage include: PAN Limited, Kaduna; National Truck Manufacturers, NTM, Kano; Steyr Nigeria Limited, Bauchi; MB-ANAMMCO, Enugu; Innoson Vehicle Manufacturing Company Limited, IVM, Nnewi; and GM Nigeria, Lagos.  Others are BUSAN-Leyland, Ibadan; Autobhan Techniques Limited, Lagos; BUREM, Kaduna; and Addis Engineering Limited, Lagos.

The plants produce cars, light commercial vehicles ranging from pick-up trucks to buses with capacity of 15 to 30 passengers, and heavy commercial vehicles consisting of trucks and luxury buses capable of accommodating 50 and above passengers.

Ogunsan, who was a member of a delegation on automobile industry to UK, recently, asserted that  government can resuscitate the ailing industry, by making an enabling law, and compelling every governments ministries and departments and all states’ agencies to buy their products.

“Government must pass it as a law that everybody must buy Peugeot — it’s compulsory.  If you don’t buy Peugeot, buy Volkswagens.  Government should make it a priority.  Sets a priority lists and give reasons why they must buy for instance XYZ have presence in Nigeria, they generate employments, and pay taxes to government, etc.”

“So, if private investors are to put their billions down on the table, government should  support it by enabling law that makes it conducive for them to operate.

“I am of the opinion, and I always hope and stand by this principle of private and public partnership.  I will support private investment in the automobile sector.

Private investments is the best if you want to help the sector.  If you want to prove to the world that you can don better than what others have done, especially the French owners.  The only problem is lack of government support.

If we want PPP, it should be a real partnership, not the one that after the agreement had been signed, after investors had put down their billions,, after they had been told to go ahead with the project, then, suddenly, in the middle of transaction government now withdraws from the agreement signed with an investors.”