New automotive Policy: Nigeria FG to end Importation of used cars (Tokunbo)

The Federal Executive Council (FEC) Wednesday approved a new automotive policy aimed at transforming Nigeria's automotive industry.

It also approved N39 billion for the rehabilitation and expansion of some roads in the Federal Capital Territory (FCT).

The approval of a new automotive policy, according to Minister of Information, Labaran Maku, was sequel to the proposal brought to the council by the Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, seeking  the nod for the policy to transform the Nigerian automotive industry and attract investment  into the sector.

Maku, while briefing State House correspondents at the end of  the weekly FEC meeting, said: "A  transformed  automotive industry will realise its potential as a major driver of economic growth and diversification , job creation, local value addition, and technology acquisition.

“These recommendations were adopted at various conferences and consultations with stakeholders, including some original equipment manufacturers.  After deliberations, council approved the Automotive Industrial Policy Development Plan."

According to him, FEC has approved a directive that all vehicles purchased by  government should be from local  assembly plants, unless they are of specialized nature and NAC has certified that such vehicles are not produced in Nigeria

"The council approved that the approved recommendation should be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy,"  he said.

Commenting on the automotive policy, Aganga  said it was unfortunate that not less than N550 billion was spent by Nigerians on the importation of vehicles in 2012.

He added that Nigeria spent $4.2 billion (about N664bn) on importation of cars in 2010, and that “car import takes the biggest share of the country’s foreign reserves followed by other machinery.”

He expressed optimism that the success of the policy would mean a gradual end to the importation of fairly used cars to the country.

The council also approved N39 billion for the rehabilitation and expansion  of  Southern Expressway  from the presidential villa roundabout to the OSEX/Ring Road 1(RR1) junction, including five interchanges.

The approval was also as a result of a memo tabled by Minister of FCT, Bala Mohammed, seeking the rehabilitation and expansion of the roads.

The roads, after the facelift, Maku added, would ensure free flow of traffic and significantly reduce travel time in and out of the city.

"The  Federal Capital Territory Administration (FCTA) intends to embark on the rehabilitation of and expansion of the OSEX from the villa roundabout to the OSEX/RR1 junction.

"The existing segment of the OSEX from the villa roundabout to RR1is only partially developed with a two-lane main carriageway and one two-lane service carriageway as against the 10-lane expressway provided in the Abuja Master Plan. The OSEX is an expressway that bounds the city on the eastern fringe and provides the major access to the city.

"The project would provide employment opportunity for about 1,500 professionals, artisans, skilled and unskilled labour.

Source: Thisdaylive