NATIONAL Automotive Policy or STRATEGY?
In recent times the Federal Government has unveiled a new National Automotive Policy that is expected to increase the investment in Automotive manufacturing in Nigeria. The idea is to increase the customs duties on imported vehicles and allow assembly/manufacturing plants to spring up that will sell cars to the Nigerian people are far less than the imported ones will ever be. This is an excellent policy on the surface however it requires an even more prudent implementation to be sure that effects are truly met and that we do not hurt the Nigerian poor people we are trying to protect. First of all we need effective mass transportation that must be a part of any National Automotive Policy or Strategy. We cannot expect to push the manufacturing of cars when our real problem is effective and efficient mass transit. I would prefer that we push for the establishment of bus manufacturing plants, and inner city trolleys (ultra-light rail) this will make the policy more effective in that it addresses the needs of the masses and not the rich few. I have read the arguments in favor of the policy as presently drafted and the sheer number of cars we import into Nigeria which could be replaced by Nigerian manufactured Cars, However the truth is that these cars are for the elite and not the masses. And the reason we buy so many cars is because we have an inefficient mass transit system. Who wants to be driving to work for three hours every morning if there is a rail system that can get you there in twenty minutes?
The real masses of Nigeria ride in Buses not cars and so if we really want to reduce the transportation costs of the masses and embrace a policy that will really change lives, which should be the strategy of the Automotive Policy then we need to target buses. There are major benefits to be derived from a target on Buses. Well first of all cheaper buses on our roads means a much cheaper transportation costs for the Masses. And if you can reduce the transportation costs of the Masses then maybe the masses will let you even remove the almighty Fuel Subsidy which the Government so badly wants to remove but has been unable to because of political considerations, unrest and labor. You see the masses do not really consume fuel directly, they never really did, the masses are and have always been at the mercy of the Transportation companies. And so once a the charges of fuel are increased it results in an increase in the ticket fare for which millions of people are effected. If our new Automotive policy is targeting the manufacturing of cars and not buses, then the new custom duties on Buses will surely increase the prices of a bus ticket which in turn will negatively effect the masses in which they will condemn rather than praise a Government policy which was supposed to be designed for them.
Solutions
We can use the National Automotive Policy to revolutionize the Nigerian transportation industry and create millions of opportunities for young Nigerians all over the country but we must do it together.
If I were Mr. President, OR the Minister of Transportation this is what I would do.
I would get all the bus owners together and get them to provide us with a twenty to thirty year plan of their bus capacity needs. This will include all the new buses, spare parts and other inputs they will need over the next thirty years.
I would then get all the world’s leading manufacturers of Buses including Nigeria manufacturers and potential or aspiring Nigerian Manufacturers and get them to indicate interest in filling the orders indicated by the Bus Operators.
I would then divide the fulfillment of the capacity into five segments (that is 20% segments). Each segment will cover five years. The first segment may be filled with imported Buses whereas investment will commence for the fulfillment of segment 2 and 3 from Nigerian based Bus manufacturing plants. In this case by the time we get to segment 2 we will be self-sufficient in Bus manufacturing. That means that plants that can meet the Nigeria capacity and demand will be ready in five years, thus completely changing the land scape of Nigeria and revolutionizing an entire industry.
In this arrangement our Banks and local finance houses can play a critical role in Nation building by providing the funding required for the Development of the local Nigerian Bus manufacturing plants. And before anybody says “what of POWER and Electricity?”, we will provide captive power solutions for the plants as they will be sited in an industrial cluster, industrial park or in one of the 23 Free trade or export processing zones presently operating at low capacity.
This Strategy will mean that in four to five years Nigeria will be not only self-sufficient in Bus Manufacturing but we will be exporting Buses to the whole of Africa, and we would have created thousands and thousands of Jobs in the process. Millions more Jobs will be created by the development of feeder industries such as spare parts, bus seats, mirrors, tires, safety equipment and thousands of inputs required for the successful manufacturing of a Bus.
And for those who are shaking their heads and saying “Assembly of knocked down parts is not manufacturing” let me educate you, all manufacturing in the World today is now done by assembly, that is the Global supply chain and it was bought on by Globalization. Nations only produce what they can produce best and the finished product is assembled either near to the market (as would be the case in Nigeria) or near to the technology as is the case with airplane assembly plants such as those owned by Boeing and Air Bus which are assembled in the United States but have their parts made in Europe, Japan and even China.
As you can see Government Policy is a powerful tool in the hands of someone who knows what they are doing, it is a major pillar and driver in any attempt to develop a National Development Strategy and it is missing in most local, State and even many of our Federal Government Ministries and departments. We as a people, need to take another look at Government Policy as one of my Pillar’s of National Development and advice our Leaders on solutions for the future.
Source Guardian News Website
In recent times the Federal Government has unveiled a new National Automotive Policy that is expected to increase the investment in Automotive manufacturing in Nigeria. The idea is to increase the customs duties on imported vehicles and allow assembly/manufacturing plants to spring up that will sell cars to the Nigerian people are far less than the imported ones will ever be. This is an excellent policy on the surface however it requires an even more prudent implementation to be sure that effects are truly met and that we do not hurt the Nigerian poor people we are trying to protect. First of all we need effective mass transportation that must be a part of any National Automotive Policy or Strategy. We cannot expect to push the manufacturing of cars when our real problem is effective and efficient mass transit. I would prefer that we push for the establishment of bus manufacturing plants, and inner city trolleys (ultra-light rail) this will make the policy more effective in that it addresses the needs of the masses and not the rich few. I have read the arguments in favor of the policy as presently drafted and the sheer number of cars we import into Nigeria which could be replaced by Nigerian manufactured Cars, However the truth is that these cars are for the elite and not the masses. And the reason we buy so many cars is because we have an inefficient mass transit system. Who wants to be driving to work for three hours every morning if there is a rail system that can get you there in twenty minutes?
The real masses of Nigeria ride in Buses not cars and so if we really want to reduce the transportation costs of the masses and embrace a policy that will really change lives, which should be the strategy of the Automotive Policy then we need to target buses. There are major benefits to be derived from a target on Buses. Well first of all cheaper buses on our roads means a much cheaper transportation costs for the Masses. And if you can reduce the transportation costs of the Masses then maybe the masses will let you even remove the almighty Fuel Subsidy which the Government so badly wants to remove but has been unable to because of political considerations, unrest and labor. You see the masses do not really consume fuel directly, they never really did, the masses are and have always been at the mercy of the Transportation companies. And so once a the charges of fuel are increased it results in an increase in the ticket fare for which millions of people are effected. If our new Automotive policy is targeting the manufacturing of cars and not buses, then the new custom duties on Buses will surely increase the prices of a bus ticket which in turn will negatively effect the masses in which they will condemn rather than praise a Government policy which was supposed to be designed for them.
Solutions
We can use the National Automotive Policy to revolutionize the Nigerian transportation industry and create millions of opportunities for young Nigerians all over the country but we must do it together.
If I were Mr. President, OR the Minister of Transportation this is what I would do.
I would get all the bus owners together and get them to provide us with a twenty to thirty year plan of their bus capacity needs. This will include all the new buses, spare parts and other inputs they will need over the next thirty years.
I would then get all the world’s leading manufacturers of Buses including Nigeria manufacturers and potential or aspiring Nigerian Manufacturers and get them to indicate interest in filling the orders indicated by the Bus Operators.
I would then divide the fulfillment of the capacity into five segments (that is 20% segments). Each segment will cover five years. The first segment may be filled with imported Buses whereas investment will commence for the fulfillment of segment 2 and 3 from Nigerian based Bus manufacturing plants. In this case by the time we get to segment 2 we will be self-sufficient in Bus manufacturing. That means that plants that can meet the Nigeria capacity and demand will be ready in five years, thus completely changing the land scape of Nigeria and revolutionizing an entire industry.
In this arrangement our Banks and local finance houses can play a critical role in Nation building by providing the funding required for the Development of the local Nigerian Bus manufacturing plants. And before anybody says “what of POWER and Electricity?”, we will provide captive power solutions for the plants as they will be sited in an industrial cluster, industrial park or in one of the 23 Free trade or export processing zones presently operating at low capacity.
This Strategy will mean that in four to five years Nigeria will be not only self-sufficient in Bus Manufacturing but we will be exporting Buses to the whole of Africa, and we would have created thousands and thousands of Jobs in the process. Millions more Jobs will be created by the development of feeder industries such as spare parts, bus seats, mirrors, tires, safety equipment and thousands of inputs required for the successful manufacturing of a Bus.
And for those who are shaking their heads and saying “Assembly of knocked down parts is not manufacturing” let me educate you, all manufacturing in the World today is now done by assembly, that is the Global supply chain and it was bought on by Globalization. Nations only produce what they can produce best and the finished product is assembled either near to the market (as would be the case in Nigeria) or near to the technology as is the case with airplane assembly plants such as those owned by Boeing and Air Bus which are assembled in the United States but have their parts made in Europe, Japan and even China.
As you can see Government Policy is a powerful tool in the hands of someone who knows what they are doing, it is a major pillar and driver in any attempt to develop a National Development Strategy and it is missing in most local, State and even many of our Federal Government Ministries and departments. We as a people, need to take another look at Government Policy as one of my Pillar’s of National Development and advice our Leaders on solutions for the future.
Source Guardian News Website