The Managing Director of PAN Automobile Nigeria, Ibrahim Boyi has urged the passage of the New Automobile Industry Development Plan (NAIDP) Bill, among others because it would accelerate growth in the industry.
Boyi said this would also attract the development and growth of Original Equipment Manufacturing (OEM) which has huge capacity for mass employment, value chain addition and export revenue for the country.
The Chief Executive of PAN stated this when he met with the World Bank Group on Private Sector Development at PAN’s corporate head office in Kaduna, recently. The World Bank team, headed by Dr Supo Olusi, was on a policy development strategy mission to help fashion out Nigeria’s private sector business development instruments.
Boyi said lack of industry protection through no strict policy implementation, coupled with uniform policy instruments incentives to heavy capital investors and mediocre garage operators, the nature of our porous borders, allowing smuggling of used vehicles, all contributed in dwindling the fortune of the OEM and made investment in the sector unattractive.
“As at the last count we have only eight operational OEMs out of the 70 that existed in 80s and 90s who contributed in PAN attaining 40% local content, assembling 90 vehicles in 3 shifts with over 4000 direct employees,” he lamented.
The World Bank team leader congratulate the PAN management team for their tenacity to sustain operations despite the harsh economic realities, and also concurred with Mr Boyi’s support for the NAIDP Bill which they see as one strong instrument for the revival of the OEMs and window for direct foreign investment “with potential export revenues running into billions of dollars,” Olusi added.
In a related development, at the just concluded Kaduna Economic and Investment Summit 4.0, Ibrahim Boyi, who was plenary discussant of the topic, ‘Reviving the Manufacturing Sector: The way Forward’, called on government to develop an “effective manufacturing policy that will drive growth through rigorous implementation and marshalling out various incentives, like strict compliance with Executive Order of Buy Made in Nigeria to protect and grow local industries.”