News Investigators/ The Federal Government says the Nigeria First Policy has cut the price of a locally assembled vehicle from about N72 million to N35 million.
The Director-General, Bureau of Public Procurement (BPP), Adebowale Adedokun, said this at a press conference on the implementation of the policy and its implications for the automotive industry, on Friday in Abuja.
The meeting was organised by the National Automotive Design and Development Council (NADDC) in collaboration with BPP.
Mr Adedokun said the vehicle cost about N72 million when he assumed office, but the price dropped to N35 million after the policy was announced and the bureau bought two units.
“We can put the interest on Nigeria first. So the money for one gave me two in this same economy,” he said.
He said assemblers had offered further discounts for bulk purchases, adding that all federal government entities were directed to give priority to Nigerian-assembled vehicles.
According to him, the policy is designed to drive industrialisation, create jobs, engage technicians and take youths off the streets.
Mr Adedokun said the policy had moved beyond statements to a legislative and institutional framework.
“Beyond policy statement, we have moved this policy to the next level of legislative framework,” he said.
He said that assemblers who violated the policy would face sanctions, including debarment, under the provisions of the circular and government guidelines.
“Government will buy, but the assembler must guarantee quality, innovation and maintenance.
“The era of assemblers without after-sales facilities is over. Now they know the game has changed,” he said.
Mr Adedokun said a stakeholder steering committee and a monitoring and evaluation system had been put in place to track performance across the value chain.
He said that the policy was not yet perfect.
“We are seeing the gaps. We are dealing with the challenges on a daily basis,” he said.
The Director-General of NADDC, Joseph Osanipin, urged assemblers to progress from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) operations to continue to enjoy government patronage.
“The policy is to ensure a baby that is crawling starts growing, walking, running, and continues to grow,” Osanipin said.
He said the policy would deepen demand for local components and help manufacturers meet the 40 per cent rule of origin under the African Continental Free Trade Area (AfCFTA).
“By the time these policies succeed, the major beneficiary may not even be the assemblers themselves. The major beneficiary will be the local content manufacturers.
“Nigeria has about 15 to 16 persons per vehicle, compared with six to seven in South Africa, showing a large market gap.
“Assemblers must, therefore, provide after-sales services nationwide. We want you to see this as an opportunity to grow the industry,” he said.
The NADDC boss said the council would collect data on assemblers’ employment and investment, and work with BPP to track approvals given to ministries, departments and agencies.
“I want to commend BPP for its commitment to implementation. They have demonstrated that they have the capacity, and they have the will to do it,” he said.
The Chairman of the Nigerian Automobile Manufacturers Association (NAMA), Mr Bawo Omagbitse, described the policy as a de-risking measure for investors in the capital-intensive sector.
He said members did not see the policy as a freebie, but as an anchor for industry growth, and pledged to meet and surpass set standards.
The National Coordinator of the Automotive Local Component Manufacturers Association of Nigeria (ALCMAN), Anslem Ilekuba, said 3,500 manufacturers in China had expressed interest in collaborating with the Nigerian industry.
Mr Ilekuba said component makers were developing a digital platform with traceability barcodes to help buyers locate manufacturers and verify the source of spare parts.
NAN
