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Kia Plans 90% Local Content in Nigeria-Assembled Cars

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The Chief Commercial officer, Kia Motors Nigeria, Mr. Sandeep Malhotra, was quoted in a statement as saying, “Nigeria remains an emerging and growing economy in the world with vast potential for growth, despite its myriad of challenges, the country promises a large economy of scale, hence, it is incumbent upon us as a local investor to help her realise its goals.

“As a company with an unswerving interest on the advancement of the nation’s economy, we have a plan to utilise 90 per cent local content in our assembly process to help strengthen the economy.”

The Kia Nigeria assembly plant is said to produce all nine models, including the 2016 Kia Sorento.

The statement said the automobile company had a long history of building vehicles of global standard locally to meet the specific needs of customers with assembly operations using ‘car kits’ sourced locally and other parts of the world.

“With its built-from-scratch assembly chain firmly in place and over a year of SKD production phase under its belt, Kia Motors Nigeria is now focused on the local content utilisation in its made in Nigeria Kia cars.

It also stated that the plant in Lagos was progressing on schedule for the utilisation of local contents in its assembling process as it sourced some of its parts including refrigerant, lubricant, and workshop consumables locally.

It said the plant had a capacity to build up to 27,000 vehicles annually on flexible assembly lines that could manufacture several different models simultaneously to adapt to changes in buying trends.

It added, “Kia’s gritty and unwavering commitment in the production of made-in-Nigeria cars has continuously been at the fore of the management of Kia Motors Nigeria. The ultra-high-tech and state of the art plant in Lagos has produced over 4,500 units of cars since its launch in the first half of 2015.

“The trajectory growth of the locally assembled Kia cars and its top-notch quality built to the exacting standard of the global brand has galvanised the company to explore local content in its assembling chain and influenced its plan to reach a 90 per cent local content utilisation in the production of its cars.”

Punch

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Prepaid Meter is Free, Buhari Warns DisCos, Agents

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President Muhammadu Buhari once again warned Power Distributing Companies (DisCos) and their agents selling prepaid meters to electricity customers against the Federal Government directive that meter is free.

Ahmed Rufai Zakar, the Special Adviser to the President on Infrastructure, who represented Buhari at the FGN/NLC-TUC ad-hoc committee on electricity tariff stakeholders held in Ibadan, Oyo State on Wednesday, said President Buhari understood people’s concerns on issues surrounding electricity and was determined to curb and deal with unscrupulous individuals in the power sector.

He said, “We have made it very clear through the regulators direct order as well as intervention from the Ministry of Power that the meters are to be provided to Nigerians at no cost.

“Even for meters that were paid for, there is the directive from the regulator to the discos that they would need to find a way to reimburse those citizens over time.

“In cases where we find any disco or disco representative selling the meters or exploiting Nigerians to be able to get meters by paying, we would take the full measures of the law.

“The President has mandated that these meters must be free. We have also said that they must come from local manufacturers.

“This would create jobs and revive our industry.”

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Economy

Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS

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Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

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Economy

Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey

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The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

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