Given the huge market in Nigeria, the idea of revamping the nation's automobile industry, though late in coming, is very welcome. The Federal Government has announced plans to use the Central Bank of Nigeria (CBN) to invest the sum of N500 billion aimed to revamp the moribund automobile industry.

The funds, to be raised from special intervention fund through the Bank of Industry (BoI) will be targeted at getting such comatose companies like Kaduna-based Peugeot Automobile Nigeria (PAN), Enugu-based Anambra Motor Company (ANAMMCO), Lagos-based Volkswagen Motors and Bauchi-based Steyr Motors, working and producing again. Some of the companies had assembly plants.

According to the Federal Government, the plan to be unveiled in the next two weeks is aimed at ensuring that in three years, Tokunboh (fairly used) cars will be phased out of Nigeria as there will be deliberate policy to get Nigerians to drive brand new Nigerian-made cars.

At face value, the initiative deserves national applause. First, the return of the automobile industries means a sizeable reduction in the number of people in the labour market, as many jobs will be created. Second, beside increasing the economic activity in the country, the phasing out of imported used cars will also reduce the level of toxic emissions from cars which gradually, but steadily despoil our environment.

While we pray for the utmost success of this initiative, we are worried that the prevailing realities in our system might yet deny the nation the inherent advantages in the plan. The basic infrastructural requirements of stable electricity, good road network, security etc., are a sine qua non for the lasting recovery of the automobile and any other industry. The absence of such basic infrastructure have helped to increase the cost of doing business in Nigeria. The effect is that under the existing situation, imported cars are cheaper than the locally made ones and that defeats the purpose of getting Nigerians to drive vehicles manufactured in the country.

Therefore, government must fix these basic infrastructure to ensure the success of this desirable initiative. We believe government should now face squarely the task of providing enabling economic environment for industrial initiatives to thrive. And, coming on the eve of a general election, we hope the plan is not mere political stunt, especially as similar plans in the past by the government to intervene in the all-important textile industry came to nought, only few years after. The Obasanjo administration had promised the release of N70 billion to revitalise the textile industry. We are yet to see the impact of these funds. Not only has the textile industry remained comatose, most of the factories in Lagos, Kano, Kaduna and Asaba remain shut.

But even if the above-mentioned fears are allayed, we must yet caution on the need to not only create access to the promised fund, but to also make sure it is well managed to achieve set goals. Often times, the tardy manner of the bureaucratic process creates barrier to accessing even funds meant for already approved projects. Yet, even more troubling is the tendency to mismanage the funds in such a way that the money can be exhausted without achieving its essence. All of these hurdles must be dealt with to make the plan successful.

For a nation yearning for industrial rebirth, no effort should be spared to make the plan to revive the automobile industry work, as that remains the only way to reverse the rapid death of hitherto thriving industries in the country.

All said, the plan to revitalise the automobile sector has the potential to succeed, provided government not only avoid all the booby traps on its way, but also realise that other ancillary socio-economic variables needed to provide a supportive fulcrum are neither ignored nor neglected.

http://allafrica.com/stories/printable/201102220368.html

This author gets it.

The focus on basic infrastructure is critical.

This is good news. Oga GEJ is good o.

Arosa:

This is good news. Oga GEJ is good o.

Before you start hailing your Oga, please carefully read the article, and maybe ask why similar did not work in the past.

eku_bear:

Therefore, government must fix these basic infrastructure to ensure the success of this desirable initiative. We believe government should now face squarely the task of providing enabling economic environment for industrial initiatives to thrive. And, coming on the eve of a general election, we hope the plan is not mere political stunt, especially as similar plans in the past by the government to intervene in the all-important textile industry came to nought, only few years after.[size=13pt] The Obasanjo administration had promised the release of N70 billion to revitalise the textile industry. We are yet to see the impact of these funds. Not only has the textile industry remained comatose, most of the factories in Lagos, Kano, Kaduna and Asaba remain shut.[/size]

But even if the above-mentioned fears are allayed, we must yet caution on the need to not only create access to the promised fund, but to also make sure it is well managed to achieve set goals. Often times, the tardy manner of the bureaucratic process creates barrier to accessing even funds meant for already approved projects. Yet, even more troubling is the tendency to mismanage the funds in such a way that the money can be exhausted without achieving its essence. All of these hurdles must be dealt with to make the plan successful.

For a nation yearning for industrial rebirth, no effort should be spared to make the plan to revive the automobile industry work, as that remains the only way to reverse the rapid death of hitherto thriving industries in the country.