Anambra auto makers hail FG local vehicle policy

By Vincent Ujumadu

Two automobile manufacturers in Anambra State, Innoson Vehicle Manufacturing (IVM), Nnewi, and Jojo Motors Auto Assembly, Umunya, have welcomed the Federal Government’s new policy making it mandatory for Ministries, Departments and Agencies (MDAs) to patronise locally manufactured vehicles.

Officials of the two companies spoke during a visit by members of the board of the National Automotive Design and Development Council (NADDC) to their facilities in Anambra.

They said the policy would provide greater opportunities for local manufacturers and increase patronage of their products.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was particularly encouraged by the Federal Government’s emphasis on Compressed Natural Gas (CNG), which he described as an important opportunity for the Nigerian automobile industry.

Chukwuma said his company had dedicated its newest facility to the production of CNG-powered trucks and electric vehicles in support of the government’s CNG initiative.

“President Bola Tinubu visited some countries and saw the benefits of CNG and on his return, he began to support it. From the president’s plan, by next year, there will be CNG plants in all parts of the country because a lot of money has been invested in it,” he said.

He said the rising cost of fuel had made CNG an attractive alternative for motorists and businesses.

“With the rising cost of fuel, CNG is the way to go. There is so much gap between the price of diesel and CNG gas and that is why we want everyone to embrace it and move Nigeria forward,” he said.

Chukwuma said the company was investing in the automobile sector to create jobs and support families through its operations.

“We are investing massively in the automobile industry to make sure that our youths are busy and myself to also be busy. When the factory is constantly working, all categories of people are benefiting,” he said.

He commended NADDC for supporting automobile manufacturers across the country but called for greater backward integration to enable companies to specialise in the production of components in which they have comparative advantage.

Executive Director of Jojo Motors, Chinedu Oguegbo, said the company was focused on manufacturing commercial vehicles for the Nigerian transportation sector and had begun to benefit from the Federal Government’s local vehicle patronage policy.

“We brought the facility to where the customers are,” he said.

Oguegbo, however, said the company had faced challenges in recent years, particularly the depreciation and fluctuations in the value of the naira, which he said had made long-term business decisions difficult.

He said the company had persevered and was currently in the first phase of its development.

“As it is, things are actually stabilising and we believe that the next time the board members come, our gas facility will be ready,” he said.

Oguegbo said the company’s major brand, Omma Bus, manufactured at its Umunya facility, could soon be exported, while its natural gas facility was expected to commence operations shortly.

Director-General of NADDC, Oluwemimo Joseph, said the visit was aimed at obtaining first-hand information about the needs and challenges of automobile manufacturers.

He said the information gathered would assist the council in reviewing policies and contributing to legislation aimed at improving the operating environment in the sector.

“We know that those who are into production in Nigeria face a lot of challenges. These challenges will be reduced when we interact with the manufacturers and proffer solutions on how to overcome them,” Joseph said.

He said NADDC was also examining opportunities for backward integration by identifying vehicle components that could be manufactured locally.

According to him, the council was exploring ways of linking small and medium enterprises (SMEs) in Anambra with the automobile industry to enable them supply locally manufactured components.

Joseph also said manufacturers had raised concerns about competition from imported used vehicles, adding that the council was taking the concerns to the appropriate authorities.

He specifically mentioned issues surrounding duty policies on CNG and electric vehicles.

Chairman of NADDC, Chief Emma Eneukwu, said the council was advocating legislation to address what he described as the influx of imported used vehicles into the Nigerian market.

He said the development had made it difficult for local vehicle manufacturers to compete effectively.

“We will use the law to protect our local producers so that they can easily sell their products. Because some of these imported vehicles are tax free, our local manufacturers cannot effectively compete with them,” Eneukwu said.

He also urged local manufacturers to increase the use of locally produced components while improving their capacity to compete in the automobile market.

“There could be a few components that could be imported, but we should be able to have our locally manufactured parts that should be used in the manufacture of vehicles,” he said.

Eneukwu called for greater patronage of locally manufactured vehicles, saying increased public acceptance would depend partly on the durability and affordability of the products.

“I believe that gradually we will get there. But the most important thing is encouragement for our people to stop relying on foreign products and insist on made-in-Nigeria vehicles,” he said.

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