The federal government has said it attracted over $1 billion investment into the automotive industry in the year 2019.
This was disclosed by the Director General of National Automotive Design and Development Council (NADDC), Mr. Jelani Aliyu, at the opening of a two-day investigative hearing held at the instance of the Ad-hoc Committee into the financial budgetary approvals and multilateral donation on skills acquisition and related programs of federal government and its agencies, chaired by Hon. Victor Akinjo.
Aliyu said that they have the core responsibility of developing the automotive sector, which is to encourage and promote the assembling and production of vehicle in Nigeria as opposed to continued importation of them from overseas and exporting jobs and revenues outside of Nigeria.
According to him, “it is their responsibility to keep all those funds here in Nigeria and promote our own.
“The first one, is investment promotion to encourage investment into Nigeria and I’m pleased to say that as at 2019, we managed to bring about 1billion dollars into the country by companies such as Honda, Innoson, Dangote cement trucks and so on.
“These companies have store capacity of 400,000 vehicles, to all things being equal they’ve invested in Nigeria. We’re also playingour role in being part of the future by joining the rest of the world in their advances such as electric vehicles.
“It is one thing to produce vehicles and another thing for people to buy them. That’s why we are at advanced stage of discussion with Wema, Jaiz, Zenith banks to provide single digit auto financing for made in Nigeria vehicles.
“As soon as we get the necessary approval, Nigerians will be able to put down 10 percent, drive off with a new car made in Nigeria and pay over five years, rather than being forced to pay everything 100 percent.”
According to some of the reports submitted to the Committee, contracts worth multi-billion naira awarded by various Ministries, Departments and Agencies (MDAs) for the training/skill acquisition programmes were implemented without Appropriation between 2011 and 2020.
Some of the MDAs invited are: Bank of Industry, Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Niger Delta Development Commission (NDDC), North East Development Commission, Tertiary Education Trust Fund (TetFund), National Directorate of Employment (NDE).
Others are Bank of Agriculture, Development Bank of Nigeria (DBN), Presidential Amnesty Programme (Amnesty Office), Small and Medium Scale Enterprises Development Agency (SMEDAN), Local Content Development Board, NIRSAL Plc and NIRSAL Microfinance Bank, Sustainable Development Goals (SDGs) and National Automotive Design and Development Council.
Others include: Federal Capital Territory Administration, National Social Investment Programme (NSIP), Industrial Training Fund, Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, Federal Ministries of Labour and Employment, Works, Foreign Affairs, Education, Youths & Sports, Agriculture & Rural Development, Science & Technology, Finance, Budget & National Planning, among others.
The Committee also requested for documentary evidence of payment into consolidated account from various services rendered by the MDAs as well as copy of the Appropriation Acts for the fiscal years under review, list of all the beneficiaries who received various
While assuring that the Committee is not out to witch-hunt anybody, Hon. Akinjo reiterated the resolve of the House towards ensuring value for money.
In his presentation, Managing Director of Bank of Agricluture, Awwal Alhassan, confirmed that the sum of N50 billion equity was provided by Federal Ministry of Finance Incorporated and Central Bank of Nigeria (CBN) based on 60/40 percent shareholding.
He also confirmed that the Bank is currently managing some funds on behalf of various MDAs including Federal Ministry of Women Affairs for implementation of social intervention programmes.
