The National Automotive Council (NAC), said in Abuja on Friday that it had so far distributed N11.8billion as loans to 32 indigenous automotive companies from its Automotive Development Fund.
The Director-General of NAC, Mr Aminu Jalal, made this known at the 20th Anniversary Celebration of the council
Jalal said the beneficiaries were part of the 73 companies that applied for N15billion since the scheme was set up in 2004.
He added that applications from the remaining 41 companies had been assessed and passed by the council to the Bank of Industry for further financial assessment before final approval and disbursement.
The DG said the fund was established to address the problem of inadequate capitalisation and funding which he described as the major factor inhibiting the growth of the industry.
He said that the first decade of the existence of NAC was a very difficult one for the country’s automotive industry.
“The demand for new vehicles which started to decline in 1986 due to economic problems, continued till 1999 when it started to be reversed.
“This, coupled with the reluctance of the government then to patronise the local industry, led to the closure of many assembly plants.
“During that time, the council was not funded as it could not get access to the two per cent levy on imported vehicles meant for its operations.’’
Jalal said that the council started getting access to its fund in 2005, adding that with the new automotive policy approved by the Federal Government this year, the future was bright for the industry.
Mr Dauda Kigbu, Permanent Secretary, Federal Ministry of Industry, Trade and Investment, congratulated the council for its “laudable achievements’’ in spite of daunting challenges.
“There is no gain saying the fact that the council under, its current leadership, has achieved a lot in spite of several challenges.
“Your efforts at transforming the automotive industry, especially to attract both domestic and foreign investment into the sector, is a milestone worthy of praise and emulation
“Through this transformation, we are beginning to witness positive changes in the development of our auto industry.’’
Kigbu expressed hope that the council, through effective implementation of the revised National Automotive Policy, would be able to produce high quality and affordable automobiles to meet local and foreign demands.
He said the ministry would give the council the needed support to implement the policy, and solicited the support of all stakeholders in this regard.
Chairman of the Board of NAC, Mr Abdulkadir Saleh, expressed gratitude to those who contributed to the successes so far recorded by the council.
Saleh also solicited the support and cooperation of members of staff and stakeholders to ensure the successful implementation of the National Automotive Policy.
The News Agency of Nigeria (NAN) reports that the highlight of the celebration was the presentation of Long Service Awards to some members of staff and management of the council.
NAC is a parastatal agency under the Federal Ministry of Industry, Trade and Investment established by Act No. 84 of Aug. 25, 1993.
