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Tag: automotive

  • FG, firm train youths in automotive training

    FG, firm train youths in automotive training

    CIG Motors, one of the leading automobile companies in Nigeria, has partnered the Federal Government to train Nigerian youths composed of males and females in modern automotive skills acquisition.

    The automobile company has also unveiled plans to elevate Nigeria as a hub for automotive technology and innovation in vehicle manufacturing across the content.

    Chief Diana Chen, the Chairman, CIG Motors Group, stated these on Thursday in Lagos at the official flag off of the Skills To Wealth (S2W) training programme across the six geo-political zones of the country under the Renewed Hope Agenda of President Bola Tinubu, powered by the Federal Ministry of Humanitarian Affairs and Poverty Reduction.

    Chen, who was represented at the occasion by Brig. Gen. Chukwuemeka Udaya (retd), the Special Adviser, Government Relations to the Chairman, CIG Motors Group, assured that the company would continue to collaborate with the Federal Government to elevate the country’s youth.

    No fewer than 10,000 Nigerian youths, women and the vulnerable persons were planned for the S2W programme, which would be held across the six geo-political zones in the country.

    The youths would be put under intensive training on auto mechanics, renewable energy and agriculture for three weeks in each zone.

    Already, CIG Motors has commenced the training of some of the youths in modern technologies in the automobile industry.

    Also, the training would spread to other geo-political zones across the country with SIG Motors taking the lead in impacting knowledge on the beneficiaries, thereby bridging the gap in technical knowhow in the country.

    Chen, in her goodwill message, said that the partnership with the Federal Government was part of its vision to contribute to the growth of Nigeria through skill acquisitions, empowerment, innovation and prosperity.

    Chen noted that in Nigeria, almost 70 per cent of its population is under 30, but regretted that about 50 per cent of the country’s children lived in multidimensional poverty.

    She said that the intensive training presented an opportunity to equip the nation’s youth with the skills to drive economic growth and prosperity.

    She, however, said that transformation does not happen in isolation but thrives when the public and private sectors come together with a shared mission—to train, empower, and uplift.

    For this reason, Chen said CIG Motors took the bold step to partner with the Federal Ministry of Humanitarian Affairs and Poverty Reduction.

    “Through this Skill to Wealth Training programme, we are providing automobile maintenance training across six geopolitical zones—a direct investment in the skills and futures of young Nigerians.

    “Through this Skill to Wealth Training Programme, we are providing not just education, but career pathways, mentorship, and dignified employment opportunities. Let me say this clearly—CIG Motors is proud to be the only private-sector partner collaborating with the Federal Government on this initiative. Why? Because we believe in action, not words.

    “Now, I invite all of us—industry, government, and community—to walk this journey together towards a Nigeria that drives innovation, fosters prosperity, and leads Africa into a new era of opportunity.”

    Besides, Chen unveiled the company’s plan to expand local automotive manufacturing and production, strengthen Nigeria’s presence in Africa by building an interconnected industry, develop a robust supply chain that fosters Nigerian entrepreneurship and elevate Nigeria as a hub for automotive technology and innovation.

    In his keynote address, Prof. Nentawe Yilwatda, the Minister of Humanitarian Affairs and Poverty Reduction, lauded CIG Motors for the partnership.

    According to him, most of the nation’s auto mechanics may go extinct in the next few years due to the advance in automobile technologies.

    But, said the training impacted on the auto mechanics by CIG Motors would eliminate that fear.

    “Cars are getting more automated, complex and the auto mechanics that we have on the streets can’t fix them. You are the solution.

    “You (beneficiaries) should be able to fix most of the sophisticated cars after leaving here and I look forward to auto mechanics that will keep our economy on the move across the geo-political zones.

    “I specifically want to appreciate the CIG Motors for providing technical support and modern automatic diagnostic tools for the automotive track. This is the power of partnership. What the government starts, the private sector can scale.”

    Also, Dr. Yakubu Kofarmata, Perm Secretary, Ministry of Humanitarian Affairs and Poverty Reduction, said that the S2W was designed to serve as a catalyst for transformation, particularly for youths, women and vulnerable persons in the society.

    Kofarmata said that the government intended to focus on high impact sectors like the automobile, agriculture and renewable energy.

    He said the ministry was aligning with President Tinubu’s vision of positioning them as the drivers of innovations and enterprises in a better Nigeria.

    He also acknowledged the collaborative effort of companies like CIG Motors, which had made the training possible.

    “To the beneficiaries here and across the nation, I urge you to see this opportunity as the beginning of your journey towards economic independence.

    “The era of solely depending on the government should be seen as over. This is to yourself, for yourself and by yourself. This programme is not a handout, but a hand up, seize it with both hands and I can assure you, you will prosper,” he added.

  • Automotive sector’s many headaches

    SIR: The country’s automotive sub-sector may, as it were, be enmeshed in fresh round of uncertainty, if the recently retained 14 percent Monetary Policy Rate (MPR) is anything to go by. The Central Bank of Nigeria (CBN) Governor Godwin Emefiele announced after the 264th Monetary Policy Committee meeting in Abuja that the decision to sustain the MPR “underscores the confidence CBN had in the various policies and administrative measures it had deployed lately,” which it added also “resulted in the moderation in domestic price levels and stability in the foreign exchange rate.”

    Enthusiastic as Emefiele sounded, he was also mindful of the fact that some key sectors of the economy had continued to experience what he described as “significant challenges, barring the tepid recovery of the domestic economy from recession.”

    The automotive sector is most likely one of the sectors that have experienced significant challenges the CBN governor pointed at in his review of the domestic economy from recession. This is even more so when viewed against the precarious turmoil that has thrust the automotive sector in the last couple of years against obnoxious winds.

    Patronage of new automobiles, be it passenger cars, commercial vehicles, vans and even heavy-duty vehicles have continued to decline year-on-year, leaving stakeholders in a quandary of hesitation.

    Those particularly affected are the stakeholders who had upon the inauguration of the National Automotive Industry Development Plan late 2014, liaised with some Foreign Direct Investments (FDI) to stake their hard-earned resources in the country’s emerging automotive sector.

    The FDIs had come in their hundreds, hoping that the federal government was truly committed to the speedy development of the automotive sector, but no sooner they staked their funds than they perceived some cracks and crevices in the policy document, believed to have successfully passed through the Legislative arcades, and currently awaiting the executive accent.

    To say the investors are in a dilemma would be an understatement as majority of them have either given up hopes that anything meaningful would come from the Memorandum of Understandings they earlier signed with the local stakeholders, who are similarly waiting endlessly for the Executive accent.

    Although a flash of relief came in December 2016, when the Federal Government ordered a restriction of vehicle imports through the land borders, the respite soon paled into obscurity as smugglers returned to the creeks, cashing on weak implementation of the directive to railroad used vehicles popularly called tokunbo into the country via porous land borders.

    Prospective new vehicle buyers have also in the wake of this development resorted to patronizing used vehicles imports moments after they discovered such vehicles could still find their way into the country.

    This unpleasant scenario again doused the hopes of local vehicle assembly plants who have watched helplessly as combined sales figures plummeted from 50,000 units annually, (using 2014 statistics) to a paltry 14, 500 units in 2016 and less than 10, 000 units in 2017, the worst in five years.

    Current situations at the marketplace are not promising either as transactions at the end of the third quarter of 2018, is nothing to cheer.

    Nigeria, however, need not cry over spilt milk as it has a substantially buoyant youthful population that could play a large role in fostering the growth of the country’s automobile market if the needed machinery is put in place.

    Blue chip companies including oil and gas concerns could as well as enhance their patronage of locally assembled vehicles to encourage local plants to expand production just as the government too has a role to play in the growth and acceleration of the new automobile market.

    Government should introduce market-support initiatives, especially around regulations, helping with seamless credit schemes, granting tax holidays and ensuring seamless access to FX, while disseminating information to both manufacturers and consumers alike to avoid undue asphyxiation.

     

    • Manny Philipson, Lagos.

  • Fed Govt. eyes automotive industry to boost economy

    The Federal Government at the weekend said the automotive industry has the potential to grow and develop the nation’s economy.

    Minister of State for Industry, Trade and Investment, Aisha Abubakar stated this during the opening ceremony of the 18th Abuja Motor Fair held in Transcorp Hilton.

    She stated that the government was currently holding high level discussions with global equipment manufacturers to develop the Nigerian automotive sector as part of plans to diversify the economy.

    According to her, the automotive sector, occupies a critical catalytic role in Nigeria’s Economic Revolution.

    She said: “It is instructive to note that the present government has placed high premium on the automotive industry in Nigeria which has a potential to contribute immensely to the growth and development of the country’s economy.

    “The government is supporting the industry because of its strategic and catalytic role in economic development. Therefore in our present economic challenges, government is in high discussion with global Original Equipment Manufacturers (OEMs) in ensuring that the Nigerian automotive sector is developed.

    “This will not only facilitate the mass movement of people, agricultural products, mining, railway equipment, military hardware but will also create jobs and employment for our teeming youth.”

    Represented by the Deputy Director, Engineering Division  at the ministry, Mr. Ibikunle Adams, the minister emphasised that the ministry would strengthen partnership with the private sector to leverage and catalyse resources for development and growth.

    She added that government was also fine tuning its procurement policy to support preferential purchase of local vehicles.

    “On the part of Nigeria’s automotive industry, government is not only looking at the supply side issues but also the demand side is giving prominence. The ministry is giving all the necessary support to ensure that Nigeria Automotive Design and Development Council (NADDC) come up with vehicle purchasing scheme that will enable Nigerians buy made in Nigeria vehicles.

    In his address, Minister of Science and Technology, Dr. Ogbonnaya Onu, stated that the government would promote the production of automobile in Nigeria.

    The minister who was represented by Director of Planning and Policy at the National Science and Engineering Infrastructure, (NASENI), Onyechi Nonyem, added that the ministry would partner with critical stakeholders in the road transport sector to ensure development and growth of the sector.

    “Agencies under Ministry, like the National Agency for Science and Engineering Infrastructure (NASENI), are in the forefront of promoting the production of automobiles and automobile parts for road transport use,” he stated.

    The Managing Director, BKG Exhibitions and Chairman of the Organizing Committee, Ifeanyichukwu Agwu, stated that automotive sector had the capacity to reduce over 30 per cent of Nigeria’s job deficits and create up to two thousand industries.

  • Keeping the automotive sector’s engine running

    Keeping the automotive sector’s engine running

    It is a truism that all sectors must work optimally to maintain a healthy economy for a nation, avert job losses and put the country on the path of industrial growth.

    Similarly, there must be appropriate policies crafted by the government to fertilize the seeds of development and ensure the economy does not go south.

    A member of the House of Representatives, Saheed Akinjide Fijabi, puts the matter succinctly while moving a motion last week. The lawmaker noted that industrial growth contributes to a nation’s development in terms of increased foreign earnings, job creation and achieving other macro-economic objectives.

    According to him, most developed countries depend on industrial development to revolutionize their economic powers through manufacturing of goods for local consumption and exportation of same to other countries as a booster to their foreign trade earnings.

    His motion sought to keep the automotive sector’s engine running by injecting financial and bailout assistance into the automobile industry in Nigeria,

    It was not a coincidence that there were efforts from two different directions on the issue:  from the floor of the Green Chamber and from the House Committee on Industry.

    It seemed like a sudden awakening to lubricate the weakening engine of the country’s automotive sector.

    Prior to the motion, on the 9th October, 2016, the Hon. Abubakar Hussaini Moriki -headed House Committee on Industry had embarked on an oversight tour of the automotive industry starting from Innoson Vehicle Manufacturing Company in Enugu and Anambra states, to Lagos and Kaduna states. The committee went on an intensive tour that took its members to ANNAMCO, Afro- Asia, Union Auto-parts, VON Automobiles Nigeria Ltd, Dana Motors Ltd, PAN Nigeria Ltd and National Trucks Manufacturers amongst other companies.

    The purpose of the oversight visits, no doubt, was to have first hand information on the state of things in the automotive industry which has been plagued recently by a myriad of woes

    Giving his reasons for the comprehensive tour of the sector, the lawmaker said they wanted to see for themselves the situation in the automotive sector.

    Speaking about Innoson, he said “This company is one of the companies facilitated, assisted and collaborated with the National Automotive Design and Development Council, a regulatory council, a parastatal established by the Federal Government of Nigeria.”

    The parastatal is under the purview of the committee on industry, so, is the Bank of Industry which to a large extent has helped in providing lifelines.

    Moriki was excited at what the committee saw as they went around the country, especially looking at the prospects of the sector, but he was saddened as well by the daunting challenges.

    He was happy that Innoson especially, is 90 percent owned by Nigerians and that the company employs about 7000 Nigerians. He saw the possibility of expansion in the company. But at the same time, the restrictions and profound problems and in numerous challenges plaguing the sector was immediately evident.

    There was lack of funds to even meet the smallest threshold of production, especially foreign exchange. Where $3 million per month was required, only 200, 000 dollars was available. There is also the usual problem of power.

    Unfortunately, this is a problem that is widespread around the country, not only in the automotive industry, but across all facets of national production. Everywhere the committee went, they met the same song; harsh economic conditions that stifle growth and dwindle production.

    The committee chairman, who described what he saw at Innoson  as “extra-ordinary, impressive,” and “something to be proud of as a Nigerian,” also admitted that “the country is going through a recession and there is scarcity of dollars and that Innoson with 7000 employees is facing an acute dearth of foreign exchange,” which, he noted, may not allow it to continue its production unimpeded.

    The truth of the matter is that if the negative trend continues, Moriki’s joy in Innoson and other automotive companies may be short-lived.

    Fijabi’s argument on the 20th of October puts the situation succinctly: “Nigeria had a breakthrough into automobile manufacturing industries with the commissioning of Innoson motors, being her first indigenous vehicle manufacturing company in year 2010 to cut down the country’s dependence on importation of vehicles.”

    “Investigation revealed that Innoson Motors, known for importation of basic motor components, including engines, from abroad and assemble them locally, is shutting down business due to foreign exchange issues borne out of economic recession.

    “If this company is allowed to shut down, while government folds its arms, it will have negative effect on our economy in the area of job loss, loss of local and foreign revenue.”

    This is where the intervention of the Abubakar Hussaini- Moriki-headed House of Representatives Committee on Industry is a welcome development. If the jobs of the 7000 workers in Innoson for instance are threatened because of acute shortage of foreign exchange, it is obvious that others are facing the same situation across the country.

    A bailout in this regards, may not be out of place. The committee should quickly make its reports and findings of the oversight tours available to the House in order to help the legislature chart a new path for the automotive sector.

    It may also be necessary for the committee to liaise with the relevant ministry to tweak the Nigerian Automotive Industry Development Plan (NAIDP) for better financial incentives in the coming fiscal years.

    By so doing, this would not only attract new investors in the sector, it would also help create a more enabling environment for existing assembly plants as well.

    It would also be a good thing for the adhoc committee, set up by the Green Chamber, to interact with relevant stakeholders in the sector to address the problems faced by the industry.

    Optimists say the report of the committee might provide a soothing elixir for an already troubled sector.

  • ITF, NAC to establish automotive training centres

    ITF, NAC to establish automotive training centres

    The Industrial Training Fund (ITF), has started discussion with National Automotive Council NAC to establish National Automotive Parts Manufacturing and Training Centres as part of its skills acquisition programme, the Acting Director-General, Dickson Onuoha, has said.

    Onuoha, who addressed the press yestrday in Abuja, said apart from conserving foreign exchange that is expended on the importation of auto parts, the centres will ensure that needed auto parts are produced in the country.

    He said youths will also be trained for employment in the automobile parts’ manufacturing sector of the economy, adding that the fund is also working on the expansion of facilities at existing skills centres in Ikeja, Kano and Abuja.

    “At the model skills training centre in Abuja, adequate  provision has been made in 2016 budget to acquire the remaining complement of equipment required to graduate all trainees at the centre and admit new ones.

    “The Fund is also fast-tracking plans to commence the long term skills training programme at Industrial Skills Training Centre (ISTC), Kano while arrangements are in top gear to commission the mechatronic and mechanical workshop that have been built in the centre.

  • Automotive test labs near completion, says Jalal

    The Automotive Test Laboratories for emission, components and materials would soon be completed, the National Automotive Design and Development Council (NADDC) Director-General Aminu Jalal, has said.

    Jalal said the world class project is almost 80 per cent completion stage, promising its commissioning by the end of the year.

    He spoke at a workshop on the Identification of Sub-Standard Auto Spare Part in Lagos.

    According to him, the essence of the workshop was to expose participants to basic identification techniques for the detection of sub-standard auto spare parts.

    The knowledge, he said, is to be used during the enforcement or implementation of stage of the prohibition of the sale of substandard auto parts in the country.

    He said: “Substandard automotive spare parts in motor vehicles often function improperly, or fail prematurely causing damages or drastic loss of efficiency to the affected vehicle. The implication… is often very severe, leading in some cases to road crashes that could cause loss of lives, and in most cases resulting in financial losses, not just to vehicle owner but also to other road users.

    “This ugly trend has become worrisome to stakeholders hence this initiative. By gaining expertise, the enforcement team will be well equipped to discharge their responsibilities effectively.”

    He said vehicles parts like break, wipers, tyres, headlights, signalling devices, wind shield are most important when it comes to preventing crashes.

    “These parts are classified as safety items because their sudden failure in service may lead to road crash, hence, their quality must be conform to international standards at all times,” he said.

    Federal Road Safety Corps (FRSC) Marshal Boboye Oyeyemi, said counterfeiting has become a big business these days.

    Oyeyemi said the Federal Bureau of Investigation in the United States labels counterfeiting as the “Crime in the 21st century,” adding: “Since the counterfeiting is coupled with piracy, the global counterfeit vehicle parts trade according to a report in 2011 calculated that auto parts generated $45 billion in business worldwide, near quadruple the amount in 2008 which was $12 billion. More than $3 billion worth of counterfeit parts is sold in the United States alone each year.  A 2007 report by the Ford Motor Company estimated that counterfeit parts cost the company $1 billion annually.”

  • BoI’s automotive fund hits N18.09b

    BoI’s automotive fund hits N18.09b

    The Bankof Industry (BoI) National Automotive Council (NAC) Fund has grown to N18.09 billion since inception in 2003.

    The fund is aimed at developing the automotive sector by financing projects in the industry and  the annual budgetary approval for capital and recurrent expenditures of NAC.

    Bol manages the fund for a fee of five per cent per annum on investible fund, payable quarterly and deductible from the balance of the fund.

    Similarly, it was learnt that NAC receives management fee of two per cent per annum on investible fund payable quarterly and deducted from the balance of the fund.

    For the funding of projects, the fund is broken down into three categories such as, NAC Term loans and Working Capital Financing granted at 7.5 per cent and 10 per cent per annum on term loan and working capital respectively. The  second category, NAC Auto Technicians Support Scheme boasts of N1 billion set aside from the main NAC fund for capacity building in repair and maintenance for artisans, craftsmen, technicians and mechanics.

    The scheme is provided at 7.5 per cent per annum to the partnering Micro Finance Bank (MfB) and 10 per cent per annum to the final beneficiary. The last one is vehicle purchase credit scheme for individuals and private commercial operators, lease finance for fleet operators to purchase vehicles  from local assembly plants in order  to enhance their capacity utilisation and those of component manufacturers.

    BoI also manages funds for state governments such as Anambra , Niger and Kogi states. For Anambra State the fund is geared towards addressing the dearth of funding support to small business owners in the state. Under the scheme, entrepreneurs of Macro, Small and Medium Scale Enterprises (MSME) with production capacities within the state would access to the fund by way of funding equipment supply and requisite working capital.

    These entrepreneurs are basically divided into two major categories namely cooperatives and SMEs both with distinct eligibility requirements and loan servicing conditions and terms, the financial commitment of the state to the programme is over a billion naira. For Niger State the government committed over a billion also to support businesses while Kogi state said that under the programme the small business owners with production capacities within the state would have access to the fund by way of equipment supply and requisite working capital.

    All the collaborations the bank said is to grow small business who are the engine of growth in the different states and also  a vehicle for job creation bearing in mind the millions of youth who roam the street on a daily basis looking for jobs. This intervention by BoI is in addition to a programme recently established to aid SMEs  access an online real time request platform to grow their businesses. The bank said it  took this path to starve the failure rate of applications and the inconveniences encountered by business owners to come physically to their office to make requests.

    BoI Managing Director, Mr. Rasheed Olaoluwa said it will remove the inconveniences suffered by applicants; he spoke toThe Nation in Lagos. He said: “We have come up with a loan tracking system in such a way that when you apply for loan we give you a code. We have also appointed 122 Business Development Service Providers (BDSPs) to help the businesses write good proposal that will attract loans from banks.

    Our newly introduced SME Customer portal where have value proposals and contact details of all our customers. Currently we have data base for over 400 SMEs. This also makes for easier interaction amongst our customers where they can be encouraged to do businesses together.”

  • Fed Govt set to launch sugar, automotive master plan

    Fed Govt set to launch sugar, automotive master plan

    The Federal Government is to launch the Sugar and Automotive Master Plan that would lead to the creation of about 117,000 jobs, the Minister of State for Industry, Trade and Investment Dr. Samuel Ortom has said.

    He said the programme will not only revolutionalise the automobile industry due to its multiplier effect, but will also achieve a target of 300,000 units of assembled vehicles by 2018.

    “As part of the industrial revolution, we have also launched the National Enterprise Development Plan (NEDEP) with efforts by Small and Medium Enterprises Development Association association of Nigeria (SMEDAN), Industrail Training Fund ( ITF) and Bank of Industry (BoI) to create an estimated five million jobs by 2015,” he added.

    The Minister said the awareness created by the ministry, other MDAs are also recording significant inflow in aviation, transport, water, works and power, adding that with the new Trade Policy, government has repositioned the Africa Growth and Opportunity Act (AGOA) and established a training centre at BoI, and embassies to ease Foreign Direct Investment (FDI).

    Dr. Ortom said the Nigerian Industrial Revolution Plan (NIRP) is at the final stage of due diligence with sectoral focus on agribusiness, solid minerals and oil and gas where the nation has comparative and competitive advantages.

    He praised the government for consolidating on the achievements in the cement industry, stressing that the innovative and bold achievement recorded in the backward integration programme would be replicated in all sectors of the economy.

    He said: “For the first time as a nation, the government developed a strategy for domestic, regional and international trade. We have also established Diaspora Export Programme, six trans-National Border markets beginning with Okerete in Oyo State.”