AMEND 2020 AUTO FINANCING POLICY ACT TO BOOST LOCAL CONTENT — NADDC BEGS FG
Reporter : CHRISTIAN NWANGENE
The Chairman of the Governing Board of the National Automotive Design and Development Council (NADDC), Senator Osita Izunaso, has pledged to engage the Federal Government and the National Assembly on possible amendment of the 2020 Auto Financing Policy Act to boost local content. According to Senator Izunaso, if the law is amended or repealed, it will help promote purchase of vehicles and the automobile industry in the country.
Senator Izunaso stated this when he led other members of the Council on a working and inspection visit to Anambra Motor Manufacturing Company Limited (ANAMMCO), Enugu, where he expressed satisfaction with what he saw after inspection of the facility. Senator Izunaso, admitted that many vehicle manufacturing companies in the country witnessed downturn due to policy summersault, stressing that the Board was working with the private sector to turn the fortunes of automotive industry around.
The NADDC Chairman pointed out that the facility tour of the company had given them more insights to the need to review the 2020 Finance Act and Automotive policy to suit the reality on ground. He then encouraged the management of ANAMMCO not to be dismayed by the current challenges, reminding them that they had potential to become a giant vehicle manufacturing company in Nigeria.
The NADDC, Chairman expressed satisfaction with facilities at ANAMMCO Nigeria Limited, pointing out that a policy that would enable growth was essential, while assuring them of maximum support.
“With what we have seen in place and high amount of funds invested, we will give them necessary support and framework that will ensure they remain in business for a guaranteed creation of jobs,” Senator Izunaso pledged.
In his response, the Executive Director of the Anambra Motor Manufacturing Company Limited (ANAMMCO), Mr. Uche Okeke appealed to the Federal Government to urgently review the 2020 Finance Act and the Automotive Policy in the country.
Mr. Okeke said the review had become important considering the challenges faced by vehicle manufacturing companies in Nigeria, which if not addressed, would put the remaining car manufacturing industries out of business.
The ANAMMCO boss also corroborated allegation that Federal Government’s policy summersault had not encouraged both local and foreign investors to fund the automobile industry. According to Mr Okeke, with the government support, the industry alone is capable of providing job opportunities for the many youths, declaring that ANAMMCO has the capacity to employ over two thousand persons as well as produce cars that can compete with vehicles produced elsewhere.
The Executive Director maintained that it was cheaper to produce locally than import, and appealed to the Federal Government to reconsider the 20% excise duty on raw materials imported into the county. On the operation of ANAMMCO, Mr. Okeke informed the Board members that the company aside assembling vehicles, also had a training institute where people were trained on vehicle maintenance.
He, however, commended the NADDC for always coming to their rescue to ensure that ANAMMCO did not shutdown its operations, especially whenever the company faced downturn.