Expert frowns at slow implementation of Auto Policy

The Chairman of the Auto and Allied sector group of the Lagos Chamber of Commerce and Industry (LCCI), Dr.Oseme Oigiagbe, has expressed regret that three years after the introduction of the new auto policy, significant achievements have not been recorded.

Oigiagbe, who is an Executive Director of Truck Masters automobile company, expressed this recently when he presented a paper at the 5th Nigeria Transport Awards and Lecture (NTA &L), held in Lagos. The NTA & L is organised by Transport Day newspaper.

According to Dr. Oigiagbe, the implementation of the policy has been more of ‘motion without movement’, he said the “Vehicle finance scheme programme with consortium finance group led by Rank bank –would have spark up the consumer demand and ease the vehicle acquisition opportunities”, but it is yet to take off.

He also blamed the slow implementation of the policy on poor infrastructure, high interest rate, as well as poor regulatory concern.Oigiagbe added that the local component manufacturers seems to be in a dilemma and not able to “to rise up to the occasion”.

Value chain potentials of auto sector

In his estimation, “until the auto industry is made a priority of government and an SPV (Special Purpose Vehicle) is set up to drive its development agenda, the value chain potentials of auto sector may remain unexploited.

Dr. Oigiagbe who was also recognized for his contribution to the growth of the local auto industry, explained that a vibrant local auto industry will boost manufacturing activities in Nigeria, develop the industry as a key contributor to the GDP and create jobs.

He also added, that other benefits to be derived from a vibrant industry are conservation of scarce forex (foreign exchange), development of local skills and competency for production and after sales, and acceleration of technological development and technology acquisition.

According to him, other benefits are establishment of integrated Automotive Industry in Nigeria, provision of clusters, standardization and rationalization of the Nigerian automotive industry, increased private sector participation in the establishment of the auto industry and creating conducive operational environment through the introduction of appropriate fiscal policy and monetary incentives.

 

 

 

 

 

 

 

 

 

 

 

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