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Segun Aganga Attacked For Helping Indian Car Manufacturers - Business - Nairaland

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Segun Aganga Attacked For Helping Indian Car Manufacturers by Justcash(m): 1:09am On Sep 15, 2011
Aganga’s curious auto industry strategy

Olusegun Aganga. His body language seems to say ‘bury the indigenous auto makers in Nigeria.’

First, as Minister of Trade and Investment, he granted a waiver (allegedly) to an Indian firm to import over 200,000 (two hundred thousand) fully built-up Volkswagen Sport Utility Vehicles (SUVs) in the country. He denied the report as an allegation in a national newspaper (Not BusinessDay).

The Director General of NAC, Aminu Jalal admitted, according to a newspaper report, that he was aware that the waiver was a proposal put forward by an auto import company as a precondition for them to open a vehicle producing plant in the country.

Jalal was quoted as saying that the Minister of Trade and Investment sent the request to them to look at and comment.

“We met with the company and told them that the incentives they are clamouring for are good and are the same that we have been advocating in the past, like increase in tariffs for FBUs but we objected to their request of duty-free importation.”

Second, he has happily announced that another Indian group have submitted proposal to establish auto assembly plants in Nigeria.

All that news sends mixed and unsettling signals to the already existing indigenous auto makers struggling amidst some strange policies that have hindered their progress thus far. It says to them that his priority is to strengthen the competitive advantage of emerging market auto makers, like India and China, which they already have, to the detriment of Nigeria auto makers like Innoson, Peugeot Automobile and National Truck Manfacturers (NTM).

Wrong strategy. Nigeria should at this period be trying to put in place policies that will encourage and position the automotive sector by stimulating the existing cadre of privately-owned manufacturers to help re-energise the economy.

The ministry of trade and investment should be doing more to look towards even India and China and follow their approach with commitment to making manufacturing a more central part of the economy. One way to do this is to refocus the banking system to create a pool of fund among themselves to provide finance for local auto manufacturers.

There are four or five banks and few other financial institutions that can be co-opted to lend to even the ancillary manufacturers to help them build up capacity and even sales over a long time.

While Innoson is the biggest indigenous auto maker in the country, research by BusinessDay has shown that in the past two years they have struggled to sell up to 1000 unit of their bus, which compares in terms of quality with those imported by foreign auto traders in the country despite their financial commitments.

Again, PAN has continued to suffer from myriad of issues, ranging from sales to financing challenges while these foreign groups enjoy massive waivers and subsidy provided by the federal government.

PAN is currently producing less than 20 cars daily and on the verge of retrenching about 5000 workers from their plants. Their woe is re-enforced by lack of government patronage and the huge cost of doing business in Nigeria. Its entire production line is decaying and under-utilised.

The likes of Anambra Motor Manufacturing Company (ANAMMCO), once jointly owned by the Nigerian Government and the Mercedes Benz of Germany, South Eastern states, and some Nigerians and Volkswagen of Nigeria has since closed shop.

No doubt, auto manufacturing is key in any effort to rebalance the economy away from a dependence on oil. Its importance in terms of job creation can not be over-emphasized. Supporting its sustainability therefore should not be a question of lip-service but a concrete effort towards re-assuring stakeholders that any further allusion to foreign competitor or the encouragement of fully fitted vehicles into the country does not mean a death knoll for local manufacturers.

http://www.businessdayonline.com/NG/index.php/business-intelligence/27171-agangas-curious-auto-industry-strategy
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Justcash(m): 1:13am On Sep 15, 2011
Instead of looking for ways to protect the existing local manufacturers and make the sector viable for an inflow of FDI, Aganga is planning to kill the sector and make it reliant on foreign automobile firms. Why is he looking for foreigners to come and invest in the sector when the local ones are yet to be fully utilized and properly harnessed? SMH 
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by alex14(m): 5:13am On Sep 15, 2011
Justcash:


While Innoson is the biggest indigenous auto maker in the country, research by BusinessDay has shown that in the past two years they have struggled to sell up to 1000 unit of their bus, which compares in terms of quality with those imported by foreign auto traders in the country despite their financial commitments.

If Innonso is smart and really want to grow his company, he should move to a different african country FAST! Nigeria is not a place for such thing as vehicle manufacturing. I can feel the haters of anything Igbo jubilating if this promising venture goes down. Move out of the dungeon called nigeria,,,,a stich in time saves nine, so says the wise.

1 Like

Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by PhysicsQED(m): 5:31am On Sep 15, 2011
Perhaps the Innoson people should move to Ghana and/or South Africa. Nigeria doesn't seem to get the bigger picture.

GEJ was present at their opening to commend them. Maybe somebody in the Innoson group should write to GEJ to get Aganga change his strategy. This reliance on India doesn't make much sense to me.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by aljharem3: 5:47am On Sep 15, 2011
Nigeria Nigeria Nigeria!!!!!!!

What is wrong with this country angry So we can not promote OUR OWN INDIGENOUS COMPANY

We met with the company and told them that the incentives they are clamouring for are good and are the same that we have been advocating in the past, like increase in tariffs for FBUs but we objected to their request of duty-free importation.”

Second, he has happily announced that another Indian group have submitted proposal to establish auto assembly plants in Nigeria.


While Innoson is the biggest indigenous auto maker in the country, research by BusinessDay has shown that in the past two years they have struggled to sell up to 1000 unit of their bus, which compares in terms of quality with those imported by foreign auto traders in the country despite their financial commitments.

This country is a rubbish country i tell you

do they not see the importance of this company

sometimes i think this country called Nigeria is not ruled by Nigerians but by foreign powers undecided In fact I know it is not ruled by Nigerians

how can One explain A  country trying not to patronise ITS INDIGENOUS COMPANY and patronising A FOREIGN company

this to me would be the biggest mistake in the whole of Nigeria history if this company does not grow in Nigeria

Do this people know the amount of jobs this company can create in the matter of 2 years

Do this people know the increase in the standard of living this company can create

Do this people know the money this company would give Nigeria as a country I mean revenue and the money Nigeria would save from importation

Do this people know the amount of industries this company can bring up due to their demands

I tell you if Innoson cars cannot grow in Nigeria I guess Nigeria is not going anywhere soon and we should stop dreaming and wasting our time.

It cannot grow. that is a fact

that company holds the industrisation of Nigeria as a country in their hands

1 Like

Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by PhysicsQED(m): 5:58am On Sep 15, 2011
The problem I think has to do with promotion of the company. Organizations and cities need to know that this option exists and know how affordable it is.

Also, how many branches do they have nationwide to buy their vehicles?

I think this is a situation where the government should step in and engage in both serious protectionism from foreign competition and endorse the company more strongly.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by mitofag: 6:00am On Sep 15, 2011
Good call Aganga!

Who wan die from Ibo made.


We are still recovering from their fake medicine
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by aljharem3: 6:04am On Sep 15, 2011
PhysicsQED:

The problem I think has to do with promotion of the company. Organizations and cities need to know that this option exists and know how affordable it is.

Also, how many branches do they have nationwide to buy their vehicles?

I think this is a situation where the government should step in and engage in both serious protectionism from foreign competition and endorse the company more strongly.

they actually have 2 branches  ( enugu and anambra)

the bolded part is well said

I believe that if this company grows a bit more, they can have branches in other states/cities in the country

reminds me of how glo started, it was in lagos before spreading out. Now innoson can do the same

my advice for eastern governors if Nigeria government is not ready to help monopolise them for some years so they can grow a bit is to donate money for the company and monopolise it in their states.

that way people living in the state can patronise them, then they can move to other states

Nigeria is one mess up country  sad
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by aljharem3: 6:05am On Sep 15, 2011
mitofag:

Good call Aganga!

Who wan die from Ibo made.


We are still recovering from their fake medicine

fstranger, what is wrong with u

are you alright at all ? stop being playful and m.oronic and think here
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Onlytruth(m): 7:25am On Sep 15, 2011
Posted by: alj_harem

sometimes i think this country called Nigeria is not ruled by Nigerians but by foreign powers [/b]In fact I know it is not ruled by Nigerians

how can One explain A country trying not to patronise ITS INDIGENOUS COMPANY and patronising A FOREIGN company

Good call [b]alj harem Boko
, grin

Now, you see what we've been saying all these while?
Nigeria, stay one and progress. FOR WHERE?
Nigeria divide and free humans to pursue their survival. LAI LAI. angry
But all I know is that God will wreck ALL the foreign countries propping up the Nigerian nightmare. God will visit them one by one and destroy them, just like they are destroying the lives of Nigerians by supporting the rule of evil.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by kasiem(m): 8:10am On Sep 15, 2011
If innoson were to be dangote, the gov't will monopolize d market for him, they'l even fund the project with state fund. But, see how they're indirectly trying to annihilate the company the same way they did to ibeto cement company. FOR THEIR INFORMATION, U CAN NEVER MISLE AN IGBOMAN. Ghana is busy trying to woo innoson, but, he's just being patriotic.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by ektbear: 8:14am On Sep 15, 2011
Foreign investment = good, don't care if it is from India
Foreign company tying investment to import waivers = very bad

I see no reason for this foreign company not to pay the same duties everyone else does.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by djustice: 8:15am On Sep 15, 2011
Didn't I warn you all that Aganga is a shyster, bag man and an incompetent buffoon. Mek una continue sitting there and looking. Better join those of us Lagosians who saw through him from day one. He's claiming Lagos, when he was actually born in Ekiti and is of Sabongida Ora origin. That alone is a pointer to his desperation for office. It's usually a bad sign when someone denies his heritage just to gain political or pecuniary advantage. He is an incompetent minister, and his  disastrous 2011 budget is an indicator of that. Even Ngozi Okonjo-Iweala was horrified when she had the time to study the budget properly.

Sack Aganga now!
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by jamace(m): 8:16am On Sep 15, 2011
The usual mentality of our so-call leaders. I'm sure Aganga has calculated likely personal benefits (egunje) derivable  and feels the international auto-manufacturers will grease his palm more.

It is so sad that our so-call leaders at every levels continue to dash the hope of progress of this great nation. sad
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by redsun(m): 8:23am On Sep 15, 2011
Nigerian leaders are traitors,it is a case of them against the people. They dont want the people to rise because if the people rise the traitors will be displaced and made to pay for their iniquities.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by FACE(m): 8:35am On Sep 15, 2011
Innoson should really act on the bases that govt polices might be against them sometimes and rethink their sales strategy. How many people see their adverts on TV during football matches ? They need be aggressive in sales. To be a complete company, they need to be very visible in the market and not be afraid to throw in offers here and there like KIA.

Their products are targeted at a very small  section of the market (transporters and SUV lovers), which represent less than 10% of the market. They need to start producing smaller vehicles in order to cover all angles of the market.

Another key set back is the non-availability of credit facilities in Nigeria, otherwise going into finance deals with some banks would enable people buy and pay instalmentally to the banks,whilst they have received their money and moved on to other things.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Demdem(m): 9:48am On Sep 15, 2011
PhysicsQED:

Perhaps the Innoson people should move to Ghana and/or South Africa. Nigeria doesn't seem to get the bigger picture.

GEJ was present at their opening to commend them. Maybe somebody in the Innoson group should write to GEJ to get Aganga change his strategy. This reliance on India doesn't make much sense to me.

The day GEJ changes all his fleet of cars and SUV's to Innoson will be the day i will take him serious on this issue. Till then, we are still deceiving ourselves.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Dede1(m): 1:46pm On Sep 15, 2011
@POST

Any person with stream of Igbo blood in his or her vein who does not think disintegration of the cesspit called Nigeria is the only option should be shot.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by mitofag: 2:01pm On Sep 15, 2011
Demdem:

The day GEJ changes all his fleet of cars and SUV's to Innoson will be the day i will take him serious on this issue. Till then, we are still deceiving ourselves.

That's like committing suicide. I'd question his judgment if he did that.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Nobody: 2:49pm On Sep 15, 2011
Sometimes is is easier to just accept that once you become a public official, your brain goes into a retardation process that makes st00pidiity a form of intelligence. That is why the common man will pick all the gaping holes in a senators speech sad
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by POTUT(m): 3:01pm On Sep 15, 2011
Question is, will the waiver granted by Aganga translate to cheaper prices, or will they continue to sell at the standard price?

Question is, can Aganga expand the scope of the Sovereign Wealth Fund and any other fund at his disposal to prop up companies like Innoson? That way, Innoson will produce other types of automobiles also and build plants across Nigeria, especially close to the ports for export to other African nations.

Questions is, why do our leaders feel inferior and make inferior decisions? Can India grant such a waiver to Innoson?
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by bossinie: 3:43pm On Sep 15, 2011
mitofag:

Good call Aganga!

Who wan die from Ibo made.


We are still recovering from their fake medicine
People like you are the reason why Nigeria is still crawling,what is good is good and vice versa.That some individuals among the Ibo's go to any length to make ends meet through the importation of fake and substandard drugs which have killed many people does not imply that the ones who have dared to be upright in their business dealings with impeccable integrity should not be encouraged.Aganga to me is a loud-mouthed attention seeker who will not stand by any of his actions or comments the moment he realizes that it has become unpopular.The way forward is massive infrastructural development and industrialization.Not allowing one 'Ashok Bin-shawal' to try to con us out of Millions of dollars import duties for over 2000!!! cars all in the name promising to set up an auto factory in the next 5years after Aganga and his generation has left office.What a smart flogger
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by bossinie: 3:47pm On Sep 15, 2011
djustice:

Didn't I warn you all that Aganga is a shyster, bag man and an incompetent buffoon. Mek una continue sitting there and looking. Better join those of us Lagosians who saw through him from day one. He's claiming Lagos, when he was actually born in Ekiti and is of Sabongida Ora origin. That alone is a pointer to his desperation for office. It's usually a bad sign when someone denies his heritage just to gain political or pecuniary advantage. He is an incompetent minister, and his  disastrous 2011 budget is an indicator of that. Even Ngozi Okonjo-Iweala was horrified when she had the time to study the budget properly.

Sack Aganga now!
How did you know what i was thinking You sure know this man very much!
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by hajifaty: 3:54pm On Sep 15, 2011
Do we all know that Nigeria is a failed state? The govt don't appreciate anything that is made in nigeria and they believe that their western and asian masters got it all.
Believe me 80% of nigerians do not know that these local companies do exist.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by otokx(m): 4:01pm On Sep 15, 2011
How can any car manufacturer survive in Nigeria with the absence of public infrastructure? Heard Enugu or is it Anambra state government made some order from Innoson auto; the FG should also do same.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by Litmus: 4:05pm On Sep 15, 2011
Ain't researched this (you know how it is on Nairaland, because Nigerians are gullible, people post all kinds of allegation in order to solicit rabid reaction) so I'm responding to the article on fate.

My view is that men like Aganga, when they give preferential treatment to foreign companies over indigenous ones, are doing so out of personal greed. Somewhere along the line, if you examine it, he probably has been given a bung.  

Once upon a time, through local men like Aganga, foreign countries cause great local catastrophe if they don't get the market they want. So for instance,  if Innocent Motors looked like it might prevail over the Indian manufacturer being promoted by Aganga, Innocent Motors factories/assembly lines would be blown up or burnt down and someone would phone and claim they did it on behalf of Boko Haram or Niger Delta rebel. Next, we start blaming one another and killing ourselves.

So lets not be quick to call it tribalism. Often it's foreigners bribing corrupt local politician.    





BTW



If he goes to Ghana he'll eventually loose his company to a Ghana Company owned by some Oyibo. So it's either Oyibo or Indian.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by pynkspyce: 4:11pm On Sep 15, 2011
government vehicles should be purchased from Nigerian companies only. You dont see Obama driving a Toyota do you now. Rubbish!
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by BetaThings: 4:22pm On Sep 15, 2011
bossinie:

People like you are the reason why Nigeria is still crawling,what is good is good and vice versa.That some individuals among the Ibo's go to any length to make ends meet through the importation of fake and substandard drugs which have killed many people does not imply that the ones who have dared to be upright in their business dealings with impeccable integrity should not be encouraged.Aganga to me is a loud-mouthed attention seeker who will not stand by any of his actions or comments the moment he realizes that it has become unpopular.The way forward is massive infrastructural development and industrialization.Not allowing one 'Ashok Bin-shawal' to try to con us out of Millions of dollars import duties for over 2000!!! cars all in the name promising to set up an auto factory in the next 5years after Aganga and his generation has left office.What a smart flogger
 
Of course that poster(mitofag) is joking
I can feel your pain though. It is not a laughing matter
No patriotic Nigerian will prefer foreigners to his fellow countrymen
or foreign products of comparable quality to ours
Of course, we have a strange mentality: we feel that any foreign idea, product etc is better than ours
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by igbogolo: 4:31pm On Sep 15, 2011
Innoson should petition the FG. Aganga is compromised.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by pssword: 4:43pm On Sep 15, 2011
Instead of this anti-entrepreneur policies, won't it be better for the government to invest in the company, eg buy 10 to 20%, and help to promote it.
After the company has grown they can divest from the company if they need to.
Job creation should be central to any government policies - especially if it can be accomplished by indigenous entrepreneurs. This keeps the capital in the country instead of the creating a funnel for capital flight. From where I'm sitting, Aganga's policies looks un-patriot.
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by lagcity(m): 4:48pm On Sep 15, 2011
Dede1:

@POST

Any person with stream of Igbo blood in his or her vein who does not think disintegration of the cesspit called Nigeria is the only option should be shot.

shocked shocked shocked shocked shocked yeaaa! Nazi on the loose. That means most Igbo ppl would be shot be dat. Most Igbo ppl say they want to stay in Nigeria. Even ya sister Ngozi Iweala talk am. or maybe she's just pulling the statistic out of her arse. undecided
Re: Segun Aganga Attacked For Helping Indian Car Manufacturers by kaboninc(m): 5:18pm On Sep 15, 2011
Sometimes I wonder who is well educated - between those who say that someone is a literate and they themselves! Even those who profess to have had and probably are still having quality education. It just beats my imagination on how we think. Someone talked about FDI and I wonder what he means by FDI with respect to what Aganga is trying to do. Another one said that government should 'PATRONISE' locally manufactured cars as if these other manufacturing companies pluck money from trees to fund massive media campaigns and engage in mouth watering sponsorship deals just to sell their products. We should commend Aganga for not accepting the condition imposed on him as regards import waiver for 200,000 units of cars before the company can build their plants.

Think Nigerians.

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