Approves N41bn for FCT roads, engineering infrastructure projects
The Federal Executive Council (FEC), today approved the national automotive policy in a bid to stop the importation of fairly used (tokunboh) cars into Nigeria.
The council also approved a total sum of N41 billion for the provision of road and other infrastructures in the Federal Capital Territory (FCT).
The Minister of Information Labaran Maku, and his Trade and Investments counterpart, Olusegun Aganga, told State House correspondents at the end of the meeting chaired by President Goodluck Jonathan, said the new automotive policy is to encourage local manufacture of vehicles.
Aganga disclosed that in 2012 about $3.4 billion (N550 billion) was spent by Nigerians importing cars while in 2010, the sum of $4.2 billion (N670 billion) was spent, indicating that car import takes the biggest share of the country’s foreign reserves followed by other machinery.
The new policy when fully effective will ensure the creation of minimum of 700,000 jobs in the auto industry.
He further explained that the new policy followed nine months of work with input from the National Automotive Council and foreign car manufacturing giants like Toyota and Nissan that are to announce their specific investments in Nigeria soon.
Aganga stressed that the bane of similar policies in the past, like non-implementation of policies, lack of infrastructure, and inappropriate tariff regime; were considered and adequately addressed in the new one, with even the Federal Road Safety Corps and local vehicle assembly plants/manufacturers involved.
Aganga outlined the highpoints of the new policy to include the establishment of three automotive clusters in Lagos/Ogun; Kaduna/Kano; and Anambra/Enugu states to share resources and reduce cost of investments, as well as the development and revival of the petrochemical and metal/steel sectors and the tyre manufacturing industry to support the automotive sector.
Also, the Industrial Training Fund (ITF) is working with car-maker, Cena of Brazil, to open automotive training centres in Nigeria while two Nigerian universities have agreed to commence degree programmes in automechanical engineering, all in a bid to provide adequate local manpower for the industry.
Furthermore, appropriate tariff regimes to discourage car imports and encourage local manufacture will be put in place while government will continue taking the lead in patronage of locally made vehicles.
Banks will be encouraged to operate vehicle purchase schemes to enable Nigerians purchase cars on easy terms and the FRSC will kick off a new vehicle car registration/tracking system in the next two weeks to check the smuggling of used cars into the country.
The Council also approved a contract for the rehabilitation and expansion of the outer Southern Expressway (OSEX) from villa Round About to the OSEX / Ring Road 1(RR1) junction including five interchanges, at the sum of N39,829,749,225.69, in favor of Messrs CGZ Nig Ltd.
According to the FCT Minister, Bala Mohammed, said in order to ensure free flow of traffic and significantly reduce travel time in and out of the city, the Federal Capital Territory Administration (FCTA) intends to embark on the rehabilitation of and expansion of the said road.
He said the existing segment of the OSEX from the villa roundabout to RR1 is only partially developed with a 2-lane main carriage way and one 2-lane service carriageway as against the 10 lane expressway provided in the Abuja Master-Plan.
The OSEX is an expressway that bounds the city on the eastern fringe and provides the major access to the city.
Mohammed said the project would provide employment opportunity for about 1,500 professionals, artisans, skilled and unskilled labour.
The FCT Minister said Council also approved the provision of engineering infrastructure to plot 4075, Asokoro extension (comprising 50 plots), Abuja, in favour of Messrs COAN (W.A) Ltd at the sum of N1,683,258,423.00 with a completion period of 12 months
He said Government had already provided engineering infrastructure to virtually all the residential districts of phase 1 of the Federal Capital City (FCC).
He said the outstanding areas that are without infrastructure are mostly those where large plots have been redesigned and sub divided into smaller plots and allocated to the general public.
He said Plot 4075, cadastral zone B04 in Asokoro district extension is one of the large plots which has been redesigned and sub divided into 50 smaller residential plots.
“The project employment generation opportunity that would emanate from the construction activities following the implementation of the project is expected to be in the neighourhood of 450 employees”, he said.
The council also approved a total sum of N41 billion for the provision of road and other infrastructures in the Federal Capital Territory (FCT).
The Minister of Information Labaran Maku, and his Trade and Investments counterpart, Olusegun Aganga, told State House correspondents at the end of the meeting chaired by President Goodluck Jonathan, said the new automotive policy is to encourage local manufacture of vehicles.
Aganga disclosed that in 2012 about $3.4 billion (N550 billion) was spent by Nigerians importing cars while in 2010, the sum of $4.2 billion (N670 billion) was spent, indicating that car import takes the biggest share of the country’s foreign reserves followed by other machinery.
The new policy when fully effective will ensure the creation of minimum of 700,000 jobs in the auto industry.
He further explained that the new policy followed nine months of work with input from the National Automotive Council and foreign car manufacturing giants like Toyota and Nissan that are to announce their specific investments in Nigeria soon.
Aganga stressed that the bane of similar policies in the past, like non-implementation of policies, lack of infrastructure, and inappropriate tariff regime; were considered and adequately addressed in the new one, with even the Federal Road Safety Corps and local vehicle assembly plants/manufacturers involved.
Aganga outlined the highpoints of the new policy to include the establishment of three automotive clusters in Lagos/Ogun; Kaduna/Kano; and Anambra/Enugu states to share resources and reduce cost of investments, as well as the development and revival of the petrochemical and metal/steel sectors and the tyre manufacturing industry to support the automotive sector.
Also, the Industrial Training Fund (ITF) is working with car-maker, Cena of Brazil, to open automotive training centres in Nigeria while two Nigerian universities have agreed to commence degree programmes in automechanical engineering, all in a bid to provide adequate local manpower for the industry.
Furthermore, appropriate tariff regimes to discourage car imports and encourage local manufacture will be put in place while government will continue taking the lead in patronage of locally made vehicles.
Banks will be encouraged to operate vehicle purchase schemes to enable Nigerians purchase cars on easy terms and the FRSC will kick off a new vehicle car registration/tracking system in the next two weeks to check the smuggling of used cars into the country.
The Council also approved a contract for the rehabilitation and expansion of the outer Southern Expressway (OSEX) from villa Round About to the OSEX / Ring Road 1(RR1) junction including five interchanges, at the sum of N39,829,749,225.69, in favor of Messrs CGZ Nig Ltd.
According to the FCT Minister, Bala Mohammed, said in order to ensure free flow of traffic and significantly reduce travel time in and out of the city, the Federal Capital Territory Administration (FCTA) intends to embark on the rehabilitation of and expansion of the said road.
He said the existing segment of the OSEX from the villa roundabout to RR1 is only partially developed with a 2-lane main carriage way and one 2-lane service carriageway as against the 10 lane expressway provided in the Abuja Master-Plan.
The OSEX is an expressway that bounds the city on the eastern fringe and provides the major access to the city.
Mohammed said the project would provide employment opportunity for about 1,500 professionals, artisans, skilled and unskilled labour.
The FCT Minister said Council also approved the provision of engineering infrastructure to plot 4075, Asokoro extension (comprising 50 plots), Abuja, in favour of Messrs COAN (W.A) Ltd at the sum of N1,683,258,423.00 with a completion period of 12 months
He said Government had already provided engineering infrastructure to virtually all the residential districts of phase 1 of the Federal Capital City (FCC).
He said the outstanding areas that are without infrastructure are mostly those where large plots have been redesigned and sub divided into smaller plots and allocated to the general public.
He said Plot 4075, cadastral zone B04 in Asokoro district extension is one of the large plots which has been redesigned and sub divided into 50 smaller residential plots.
“The project employment generation opportunity that would emanate from the construction activities following the implementation of the project is expected to be in the neighourhood of 450 employees”, he said.
1 comment:
A very sound policy decision on the government's part. The question is, without doubt, such authentic project required the SMART principles and the SWOT analysis. The summary detail provided in this media does not demonstrate realism, consequently, it may be 'same-old, same-old' we have heard time and time again: unrealistic and unachievable. Among the realities to consider is the mid-to-long term implementation and its impact on the 'common man' who may still not be favoured by government-bank partnerships when it comes to loan support. And what becomes of the current motor delaers and imports? Do we discount the premise of influence from 'big shots' who have political affiliations? Overall, the project has significant medium-to-long term forecast and should also be very serious with road rehabilitations across the country. If it wobbles at any stage, we are back to square one: 'same-old, same-old' talk. Olubunmi
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