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Nigerian automakers under the auspices of Nigerian Automotive Manufacturers Association (NAMA) have slammed the Nigerian Senate over the controversial procurement of wholly imported Toyota SUVs instead of comparable locally assembled brand.
NAMA described the action as despicable and catastrophic to about 4,000 jobs and roughly 50 ancillary industries currently engaged by the home-grown Original Equipment Manufacturers (OEMs.)
NAMA made its position on the controversial procurement known at a media conference in Lagos, saying the action was capable of impeding the growth of the local automotive industry.
“The Senate could have saved suffering Nigerians 40 percent of the eventual outlay and sustain at least 50 medium scale enterprises had it procured vehicles assembled by talented and diligent Nigerian workforce,” NAMA chairman, Mr. Tokunbo Aromolaran, reasoned.
According to Aromolaran, “It was a rude shock to learn of the decision of the Senate to procure imported fully built SUVs when much more affordable locally assembled alternatives were offered.”
The local media had lately been saturated with reports of procurement by the Senate of indefinite units of Toyota Land Cruiser VXR V8 SUVs valued at a whopping N3.9billion contrary to the consent of the Executive arm of government.
Aromolaran added that the “Senate has by this self-centred decision held down the automotive industry by at least four years,” even as he wondered if the Senate was aware of an official circular from the office of the Secretary to the Government mandating all government agencies to mandatorily procure made-in-Nigeria vehicles except if a locally made equivalent isn’t available.
He therefore enjoined the Bureau of Public Procurement to beam its searchlight on the Senate to restrain its extremes so it doesn’t wander out of control.
The NAMA Chairman emphasised the significance of the automotive industry to the Federal Government’s quest for a viable economic resource alternative to the plummeting oil value, remarking that the automotive industry has ample potential for growth.
He however commended the House of Representatives for embracing the OEMs products and driving locally assembled Peugeot vehicles and “putting aside personal aggrandisement at a tough time like this.”
According to Aromolaran, “They (House of Representatives)have by this action identified with the suffering of their brothers and families and essentially added value to our steel products, rubber extracts, glass sheets and plastics from our petrochemical plants.”
He said vehicle assemblies needed consistent patronage to increase capacity and expand their facilities to produce more units at affordable prices and gradually move towards global competitiveness and self-sustainability.
Also speaking at the event, Managing Director, ANAMMCO Limited, Mr. Maduabuchukwu Okeke, said: “We cannot over-emphasise the need for government support, adding that “the quality of our products compare to similar products manufactured in various plants worldwide.”
Mr. Aderungboye Adewole of PAN Nigeria Limited, said: “We have invested a substantial part of our resources and we wish the Senate reverses its decision and consider locally assembled vehicles.”
Similarly, Prakash Karat, Plant Head, Stallion NMN, manufacturers of Nissan, highlighted the need for a dependable policy that could drive vehicle manufacturing and enhance sales, adding that local plants shouldn’t be struggling to sell their inventory when a larger percentage of the country’s population are youths.
Other NAMA members in attendance at the meeting were Dr. David Obi, Chairman, Motor Vehicles & Miscellaneous Assembly Sectorial Group of the Manufacturers Association of Nigeria (MAN) and Mr. Babatunde Kolade, Consultant to ANAMMCO Ltd.
