By David Onwuchekwa
The Director-General (DG), National Automotive Design and Development Council (NADDC), Mr Oluwemimo Osanipin has said that local vehicles manufacturers in Nigeria deserve exclusion import duties just as the CEO of Innoson Vehicle Manufacturing (IVM) Company, Chief Innocent Chukwuma calls for adequate patronage of vehicles produced locally.
Mr Osanipin said this when Senate Committee on Industry paid a factory visit to the IVM at Uru, Umudim, in Nnewi North Local Government Area of Anambra State.
He said that NADDC as a regulatory and supervising body in charge of automobile industry under the Federal Ministry of Industry, Trade and Investment in the country ensures that every local manufacturer has a level play ground to operate.
Osanipin noted that Innoson complained of not being given fair play ground as some people who bring in fairly used vehicles into the country get zero duty.
“We have seen that he buys flat sheets which comes with duty and that makes him feel disadvantaged and as a local manufacturer who is doing well in that sector, we will look into the issue.
“If government bans fairly imported vehicles, that will boost the opportunity and capacity of local manufacturers to meet local demands since this will increase their production possibility frontier.
“We need to discard importation of fairly manufactured vehicles which makes most people to be traders instead of manufacturers.
“Innoson has the capacity to make 3,000 buses yearly but we do not buy enough of these products. So, he needs to be encouraged. We will take issues of zero duty up to support him.
“He complained low patronage which the Senators have addressed having seen that over 7,300 Nigerians are under his employ, ”he said.
He noted that the company manufactures Compressed Natural Gas (CNG) vehicles from carcass to finish, adding that Innoson needed to be supported to discourage importers of fairly used vehicles.
Osanipin commended Innoson for building a third project that would be one of the largest assembly plants in Africa where he has a section for electric and CNG vehicles when completed. He described it as a new level of investment in automotive industry.
Chairman, Senate Committee on industry, Senator Francis Fadahunsi who led some committee members to assess the company said that they have gone round all the facilities with satisfaction and commendation, having seen that Innoson is doing the country proud.
He said that the mission of the committee to Innoson factory is to know how far a local manufacturer of various vehicles, local assemblage of various vehicle have gone to meet the cries of the people.
“We have gone round the factory segment by segment and discovered that apart from engine, rod, iron that all production materials are local contents.
“This is what is contained in President Tinubu’s renewed agenda to enhance the standard of living of the people.
“We want to know how the government will support him to continue to help Nigerian masses through attracting Bank of Industry to support him serve the needs of Nigerians.
“We are happy in what we have seen on ground, setting up huge factory in a obscured place with local content, fabricated material just to serve the public, is not easy, ”he said.
We do not want to use our scarce resources to feed the foreigners anymore, we want to encourage our own local manufacturers who use local materials,” he added.
Fadahunsi said that they observed that Innoson uses a lot of generator to power his production and said that something must be done about it to help him reduce cost of production.
He disclosed that efforts would be made by the committee to enact a law to ban fairly used cars to encourage the sale of locally made vehicles which he described as usage-friendly.
Fadahunsi advised South-East Governors to patronise Innoson and other local vehicles manufacturers.
Sen. Binos Yaroe, member of the committee, representing Adamawa South Senatorial districts under the Peoples Democratic party (PDP) platform said that there is need for leadership by example where government buys made-in-Nigeria vehicles.
He said that it is not enough for the government to say buy local vehicles but if the government buys Innoson vehicles it will build the peoples confidence
The law marker said that federal government need to lead by example to support Innoson vehicles by directing all the ministers, senators to buy the vehicles made in Nigeria which he said would boost the nation’s economy.
Yaroe recalled that Nigeria was littered with cement from outside Nigeria over 5 years back but the moment Aliko Dangote joined the cement business and got government backing Nigeria now started exporting cement.
“If Innoson gets government backing, exportation of Nigerian vehicles will be possible. Let the leaders lead by example and see how local manufacturers content thrive within and outside Nigeria could be helped, ” Yaroe said.
Sen. Victor Umeh, member of the committee, from Anambra, representing Anambra Central Senatorial district, said that what Innoson is doing is massive as he has helped to contribute to job creation in the country.
Umeh said that the committee is on ground to see things for themselves in a view to recommending to the government on the need to support Innoson company being number one indigenous vehicles manufacturers.
He said that despite the high cost of production at this harsh economic time efforts are engaged to produce mass transportation at cheaper cost to reduce hardship and providing movement of the people
Speaking, Chief Chukwuma said that the company is into pure motor manufacturing in full capacity and not just assembling the vehicles as some people think.
Chief Chukwuma disclosed that the company produces with 60 per cent of the local contents.
He called on the government at all levels to support their efforts through patronage from Nigerians which will improve the economy of the country also make the business to grow more.
“The production capacity will grow greater and we will develop more to carry out various productions that will blow the economy,” Chukwuma appeals.
