Business

Manufacturers Fault Exclusion of Motorcycles from Automotive Policy

Published

6 years ago

September 14, 2018

Manufacturers Fault Exclusion of Motorcycles from Automotive Policy

Motorcycle manufacturers under the aegis of Motorcycle Manufacturers Association of Nigeria have faulted the exclusion of motorcycles and tricycles from the National Automotive Industry Development Plan of 2013

MOMAN, a subsectoral group under the Motor Vehicle and Miscellaneous Assembly sectoral group of the Manufacturers Association of Nigeria made its position known during its Annual General Meeting held in Lagos recently.

While presenting a paper titled ‘Motorcycle Manufacturing: the Missing Link in the National Automotive Industry Development Plan, the Chairman, Boulos Enterprises Limited, Mr Robert Ugbaja, who was the guest speaker at the event, recalled that the automotive industry witnessed real growth in the 1970s and the 1980s and 150,000 cars were assembled locally every year until the collapse of the crude oil prices of the 1980s and the subsequent devaluation of the naira.

He said the NAIDP was one of the attempts made to revive the industry which collapsed following the naira depreciation and Structural Adjustment Programme of former President Ibrahim Babangida’s administration.

He pointed out that one of the major flaws contained in the 2013 NAIDP, introduced by former president Goodluck Jonathan was the omission of motorcycle manufacturing.

Ugbaja maintained that most economies with thriving automotive industries also had strong and deep-rooted motorcycle manufacturing subsector.

He said, “They built their automotive industries on solid motorcycle manufacturing foundation, which enabled them to start from basics in developing assembling and manufacturing skills while taking into account local developmental conditions.

“This approach also enabled the creation of local components manufacturing capacities and necessary supply chains which were later upgraded to meet the needs of evolving automotive industry. It became possible for such economies to migrate seamlessly from motorcycle to automobile manufacturing in a sustainable manner.”

He gave a few examples of companies that started with motorcycles to as Honda, Yamaha, Suzuki, Kawasaki in Japan; BMW in Germany, Harlwey Davidson in the United States of America, among others.

“In recent times, Asian countries such as Thailand, Indonesia and Vitenam are developing their domestic automotive industries by using the same strategy,” Ugbaja said, adding that it was doubtful if Nigeria’s automotive manufacturing efforts would succeed if this basic principle was ignored.

While speaking during the AGM, the Chairman of the association, Dr Hezekiah Adediji, said that the automotive policy should have been delayed for practitioners to start building capacity locally first.

He called on members to embark on backward integration and set up auxiliary industries manufacturing what members would need while supporting and patronising one another.

Also speaking, the Director General, MAN, Mr Segun Ajayi-Kadiri, said, “The advancement of this sector is very important to MAN as the industry is part of the growth strategy we envisage for the manufacturing sector.

“The advent of motorcycle assemblers has contributed significantly to the rise in the use of this mode of transportation in Nigeria with its attendant positive impact on the socio-economic life of the people.

“Motorcycles and tricycles have come with a host of value addition to the economy by creating business space for mechanics, spare parts dealers and local revenue generation sources through taxes, levies and licences.”

However, with the advantages also come risks, Ajayi-Kadiri said, adding that crimes, accidents, environmental pollution, flouting of traffic regulations and other societal ills had been associated with the increase of this means of mobility in the country.

“It therefore behoves your subsector to fashion out a communication strategy and line up activities to support the mitigation of these societal ills.

“This is a strategic move to redeem the good image of your sector and guarantee the continued survival of your businesses,” he said.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Business

How Public-Private Partnership Projects Attracted $500m Investment – FG

Published

2 days ago

September 19, 2024

Bassey Marshall

Public-private partnership (PPP) projects appear to be of great benefit to Nigeria, particularly within the last year.

Within this period, these projects have attracted over $500 million worth of investment, according to the Infrastructure Concession Regulatory Commission (ICRC).

The Director-General of the ICRC, Dr. Jobson Ewalefoh made this known during his courtesy visit to the Minister of Interior, Hon. Olubunmi Tunji-Ojo.

During the visit, Ewalefoh felicitated with Dr. Tunu-Ojo as the latter was honoured with the PPP Icon Award.

According to him, the $500 million in investments through various PPP projects wouldn’t have been possible without Dr. Tunji-Ojo.

To ensure compliance with statutory requirements, Ewalefoh detailed that the commission will carry out a performance audit of all PPP projects

To him: “We have mechanisms in place to begin auditing PPP agreements, not to terminate them but to optimize them for national benefit. Compliance with the insurance policy is key to protecting our national assets under these partnerships.”

Minister Ojo received praise from Dr. Ewalefoh for his efforts in revenue generation and the continuation of abandoned projects.

Ewalefoh revealed that the past year has the highest number of PPP projects presented to the Federal Executive Council (FEC), a development he attributed to the efforts of the Ministry of Interior.

On the other hand, Minister Tunji-Ojo said the government is more focused on fostering private-sector participation.

To him, this will help bridge resource gaps and create a conducive environment for investments.

Key PPP initiatives within the Ministry include the e-gate system, the Advanced Passenger Information System, and the upcoming Gap Management System, as detailed by the minister.

Minister Ojo signifies that the $500 million investment recorded in the past year is just the beginning of the many benefits of the PPP initiative.

Business

Makinde Moves to Make Ibadan South-West Business Hub With N41bn Ibadan Airport Upgrade

Published

2 days ago

September 19, 2024

Ugwoke Ogbodo

With a view to making Ibadan, the Oyo State capital the business hub of South West region, Governor Seyi Makinde has officially flagged off the N41bn upgrade of the Ibadan airport, renamed Samuel Ladoke Akintola Airport.

Speaking at the the ground-breaking ceremony for the project held at the airport premises in Ibadan, Makinde said his administration is focused on eradicating poverty in the state saying tye airport is an investment in the future.

Disclosing that the project is expected to be completed within a year, the governor noted that the project has been prioritised by his government since 2019, emphasising his commitment to transforming Ibadan into a regional business hub in the Yoruba region.

The governor stressed that the vision of his administration is fighting poverty and not the poor, admitting that there is hardship in the country of which the project, when completed, would partly contribute in tackling.

Governor Makinde posited that the airline initiative would enhance transportation and attract businesses, tourists, and investors to the region.

For the governor, the upgrade would facilitate modern touch to the airport, of which is essential for connecting the state to the global economy and drawing economic activities to Oyo.

According to him, the airport upgrade will cost N41 billion and that it is expected to enhance air travel operations and provide a reliable transportation network for both business and leisure travelers, positioning the state for economic growth and development.

Meanwhile, the Osun State Governor, Ademola Adeleke, who was the special guest at the event, described Makinde as one who actualises development projects.

He expressed willingness to collaborate with the state to explore mutually beneficial opportunities for both states.

Governor Adeleke reiterated his assurance to completing the 12 years Osun Airport project which his administration inherited, saying it would soon become a reality.

Business

Nigerians Lost ₦42 Billion To POS, Mobile Phone Frauds In 3 Month – Report

Published

2 days ago

September 19, 2024

Bassey Marshall

The Financial Institutions Training Centre (FITC) has expressed concerns over the increasing cases of fraud in Nigeria.

This is as the institution reveals that it recorded a total of 11,532 fraud cases only in the second quarter of 2024.

In a latest report, FITC revealed that many of these frauds were linked to computers, mobile devices, and point-of-sale (POS) systems.

Also, the report revealed that these frauds did not start now.

It started in 2023 and now, like a deadly plague, it has crawled into the first quarter of 2024.

In the second quarter, the total value of fraud stood at ₦56.3 billion, a significant increase from the ₦34.8 billion reported in the first quarter of the year.

Despite efforts by financial institutions to recover the stolen funds, only ₦13.7 billion was salvaged leaving fraudsters smiling home with a whooping ₦42.6 billion.

When we talk about Mobile fraud, we mean fraud carried out via mobile apps and internet banking.

This fraud scheme accounted for 33.4% of the total cases in the report, making it the largest category.

Fraudsters who operate via POS did not disappoint.

They contributed 24.6% of the cases.

Web-based fraudsters were well represented, holding 16.9% of the total fraud incidents.

Meanwhile, via the report, FITC decried the increase in computer-based fraud as a growing concern.

The report reveals how bank branches counted their losses, with 95% of the total fraud value occurring at the branch level.

Of a truth, there have been many advancements and upgrades in technology.

Yet, fraudsters continue to excel.

We cannot help but blame this on the insiders who betrayed their organizations.

During the quarter in question, 49 employees were dismissed for their involvement in fraudulent activities.

The report also brought to light a new kind of fraud.

It is called fraud by magnitude.

Fraud by magnitude caused bank branches to lose approximately ₦54 billion.

That amount signifies a staggering 95.63% of the overall fraud amount.

Web-based fraud followed closely with losses of ₦1.2 billion (2%).

POS and mobile fraud each contributed around 1%, resulting in ₦651 million and ₦547 million losses, respectively.

On the bright side, there was a 31.8% decline in card-related fraud, but cheque and cash fraud surged significantly.

This rise in cash-related fraud reaffirms that criminals are also updating their skills as the days go by.

The big question is, what is the way forward?

For FITC the use of advanced technology, including artificial intelligence may be worth a shot.

Also, attention must be paid to proactive measures, such as bolstered security systems and continuous training of staff, as critical to reducing fraud.

As detailed in the report, fraudsters have stolen a total of ₦42.6 billion from commercial banks between April and June 2024.