Connect with us

Economy

FG Targets 400,000 Locally Assembled Vehicles

Published

on

Nigeria
  • FG Targets 400,000 Locally Assembled Vehicles

The Federal Government has set an annual target of about 400,000 vehicles to be produced locally by about 45 assembly plants it has so far approved as part of its policy to encourage the production of home-made automobiles.

This indication was given on Tuesday by the Acting Director-General, National Automotive Design and Development Council, Mr. Luqman Mamudu, in a telephone interview with our correspondent.

The Chairman, Automobile and Allied Group of the Lagos Chamber of Commerce and Industry, Dr. Oseme Oigiagbe, however, warned the government against what he called booby traps that could derail effective implementation of its auto policy.

This is coming a few days after Dangote Sinotruck West Africa Limited rolled out its first set of Chinese trucks from its Lagos factory and announced that it was assembling between four and five trucks per day at its plant.

Mamudu, who recalled that as of 2015, local vehicle production capacity was about 300,000 with utilisation put at 15 per cent, said, the installed capacity had improved with more firms getting the government’s nod to establish assembly plants.

He, however, said the operating capacity had suffered significantly because of shortage of foreign exchange and other unpleasant economic variables.

“With the entry of Alhaji Aliko Dangote, Africa’s richest man, and Anambra Motor Manufacturing Company into the industry assembling Sino trucks and Shacman trucks, respectively, we have improved our installed capacity from about 300,000 to 400,000 vehicles per annum.

“More companies have received approval to assemble new brands in Nigeria. For instance, Globe Motors has signed an agreement with Hyundai Motors; Chief MKO Abiola’s son has also brought in a Chinese brand that will be assembled in the country and Weststar Associates is discussing with Fiat.”

PricewaterhouseCoopers has projected that the nation’s auto industry should produce about four million cars annually by 2050.

The Federal Government under Goodluck Jonathan introduced the auto policy in the last quarter of 2013, which included the imposition of 70 per cent tariff on imported cars and zero per cent on vehicles’ components imported by local assembly plants to encourage local production of automobiles.

But delivering this year’s Transport Day lecture in Lagos, Oigiagbe warned that until the auto industry was made a priority of the government, it might not achieve its set goals.

He spoke on ‘The Nigeria auto policy — moving forward or Stagnant’ and said that “the trust of the national automotive policy was to ensure the survival, growth of the Nigerian automotive industry using local, human and material resources. This is with a view to enhancing the industry’s contribution to the national economy, especially in the areas of transportation of people and goods.”

According to him, all 45 new licensed entrants are mostly Chinese companies, adding that the big firms such as General Motors, Toyota and Ford have not really embraced the project, “unlike South Africa where the like of GM, BMW, Ford Toyota and Volkswagen plants are established by the OEM as direct investment.”

He also noted that the project was mostly centred on Semi-Knocked Down simple operations with low value addition; little or no technology transfer and lack of structured distributor/dealer network to support after-sales.

Like Mamudu, Oigiagbe noted that the policy met a financial hurricane/recession with naira fall and the exchange rate/dollar scarcity.

He said there was a need to complete the ban on importation of used vehicles on the imposition of very high import tariff on them to discourage people from bringing them in.

He also said, “The policy needs to become an Act — passed into law by the National Assembly so that investor confidence can be guaranteed.”

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

Food Inflation Hits Record High of 19.56 Percent in December 2020

Published

on

Inflation

Food Inflation Hits Record High of 19.56 Percent in December 2020

Food Index, which measures prices of food items, grew by 19.56 percent in the month of December 2020 amid herdsmen attacks and flooding.

In the latest report from the National Bureau of Statistics (NBS), increases were recorded on Bread and cereals, Potatoes, Yam and other
tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.

On month on monthly basis, the food sub-index rose by 2.05 percent in December 2020, 0.01 percent from 2.04 percent recorded in November 2020.

The average annual rate of change of the Food sub-index for the twelve-month period ending December 2020 over the previous twelve-month average was 16.17 percent, 0.42 percent points from the average annual rate of change recorded in November 2020 (15.75) percent” the report stated.

Headline inflation number increased by 15.75 percent in the month of December 2020, up from 14.89 percent.

The report noted that increases were recorded in all COICOP divisions that yielded the Headline index.

On a month-on-month basis, “the urban index rose by 1.65 percent in December 2020, same as the rate recorded in November 2020, while the rural index also rose by 1.58 percent in December 2020, up by 0.02 percent above the rate that was recorded in November 2020 (1.56 percent).

Continue Reading

Economy

Nigeria’s Inflation Rate Rises to 15.75 Percent in December

Published

on

inflation

Nigeria’s Inflation Rate Rises to 15.75 Percent in December

Inflation rate in Africa’s largest economy, Nigeria, rose at the fastest pace in several months in the last month of 2020, according to the latest report from the National Bureau of Statistics (NBS).

Consumer Price Index (CPI), which measures inflation rate, increased by 15.75 percent year-on-year in December 2020, representing a 0.86 percent increment from the 14.89 percent attained in November.

On a monthly basis, headline inflation rose by 1.61 percent in the month of December, representing 0.01 percent increase from the 1,60 percent posted in the month of November.

Food gauge that measures prices of items in Africa’s largest economy increased by 19.56 percent in December from 18.30 percent in November.

NBS attributed the increase to the surge in prices of Bread and cereals, Potatoes, Yam and other tubers, Meat, Fruits, Vegetable, Fish and Oils and fats.

On a monthly basis, the food sub-index grew by 2.05 percent in December 2020, an increase of 0.01 percent points from 2.04 percent recorded in November 2020.

The more stable annual rate showed Food sub-index over the last 12 months increased by 0.42 percent points from 15.75 percent in November to 16.17 percent in December.

Herdsmen attacks, the rising cost of fuel, flooding and the wide exchange rate are some of the key factors impacting the cost of food items in Nigeria, especially in December when demands were the highest.

Still lack of enough fiscal buffer to cushion the effect of COVID-19 and ease forex scarcity also drag on raw materials necessary for the production of some import-dependent items.

Continue Reading

Economy

Joe Biden on Thursday Unveiled $1.9 Trillion Stimulus Package

Published

on

Joe Biden on Thursday Unveiled $1.9 Trillion Stimulus Package

President-elect, Joe Biden, on Thursday revealed more details of his $1.9 trillion coronavirus rescue package for households and businesses impacted by the COVID-19 pandemic in the United States.

In the proposal called the American Rescue Plan, several stimulus measures were detailed in the hope it would mitigate the impact of COVID-19 on families and businesses.

Below are the highlights of the Rescue Plan

  • Direct payments of $1,400 to most Americans, bringing the total relief to $2,000, including December’s $600 payments
  • Increasing the federal, per-week unemployment benefit to $400 and extending it through the end of September
  • Increasing the federal minimum wage to $15 per hour
  • Extending the eviction and foreclosure moratoriums until the end of September
  • $350 billion in state and local government aid
  • $170 billion for K-12 schools and institutions of higher education
  • $50 billion toward Covid-19 testing
  • $20 billion toward a national vaccine program in partnership with states, localities and tribes
  • Making the Child Tax Credit fully refundable for the year and increasing the credit to $3,000 per child ($3,600 for a child under age 6).

Speaking on Thursday, Joe Biden, said “Tonight, I lay out my first step, the American Rescue Plan that will tackle the pandemic and get direct financial assistance and relief to Americans who need it the most.

Next month, in my first appearance before a joint session of Congress I will lay out my ‘build back better’ recovery plan,” Biden said. “It will make historic investments in infrastructure, manufacturing, innovation, and research and development in clean energy.”

Our ‘rescue and recovery’ plan is a path forward with both serious of purpose and a clear plan, with transparency and accountability, with a call for unity that is equally necessary,” he said.

It’s not hard to see that we’re in the middle of a once-in-several-generations economic crisis with a once-in-several-generations public health crisis. A crisis of deep human suffering is in plain sight and there’s no time to waste,” Biden said. “We have to act, and we have to act now.”

Continue Reading

Trending