…FG Endorsement for Innoson, Stallion, Mikano, NTM, Proforce
June 27, (THEWILL) – Nigerians are beginning to appreciate and embrace locally-assembled vehicle brands as against the age-long preference for fairly-used vehicles popularly called Tokunbos. The choice for most Nigerians came out of the realisation that it is far more cheaper and convenient to maintain a brand new locally-produced vehicles than the Tokunbos, no matter the make. Moreover, with the current depreciation of the Naira, it makes more sense to buy made-in-Nigeria vehicles.
The free service and the ease of maintenance which form part of the initial warranty and incentives for new vehicle owners are also part of the attractions driving patronage for the locally-assembled vehicles. The various financing schemes being put in place for prospective buyers of locally-assembled vehicles are also attracting a lot of Nigerians, especially those in paid employment.
THEWILL recall that in a bid to address the deficit in the economy, the Federal Government had initiated the National Automotive Industry Development Plan (NAIDP) with the aim of attracting Foreign Direct Investment (FDI), curtailing the dependence on importation of vehicles and promoting local production of automobile. Unfortunately, many years after this laudable policy was initiated, Nigerians are yet to fully embrace their locally made products, especially vehicles.
However, the trend is gradually changing for most Nigerians even as the government is now pushing vigorously the patronage of locally-manufactured vehicles.
Nigeria has about 14 functional automotive plants with their combined production put at under 50,000, despite the fact that the actual needs in Nigeria is about 750,000 vehicles per annum. The Federal Government has also resolved to take all the vehicles produced by the local assembly plants as part of its relief package to the automotive sector. The Minister of Finance, Zainab Ahmed , confirmed this while responding to the allegations that the Federal Government was deliberately stifling local auto makers with the slash in tariff for fully-built vehicles which forms part of the controversial Finance Act 2021 as it puts local manufacturers at a great disadvantage.
The Minister confirmed that the government has started discussing with local automakers with a view to patronising them in line with the Executive Order 003 which makes it mandatory for Government Ministries, Departments and Agencies to buy made in Nigeria products, including automobile products.
“The Federal Government had a commitment to buy made in Nigeria, so the Federal government this year must stand with that commitment and buy all the vehicles that these assembly plants in Nigeria produce and we will engage the state and encourage them and the local government and encourage them to do the same. This is a time-bound relief,” the Minister said in an interview with Channels Television, adding “it is not a perpetual provision that has been made.”
Nonetheless, THEWILL investigations reveal that in May, 2021, the Federal Ministry of Industry, Trade and Investment sent a letter to the Bureau of Public Procurement (BPP), at the Presidency to appeal to the organisation to ensure that the Nigerian Police Trust Fund (NPTF) patronised Nigerian made vehicles.
Part of the letter, dated 6th May, 2021 with reference number HMITI/GEN. CORR/008/Vol1, copy of which was sighted by THEWILL, read: “I write to solicit your support in ensuring the patronage of locally assembled vehicles by the Nigerian Police Trust Fund. This will promote the growth of Nigeria’s automotive industry .
“As you are aware, Executive Order 003 was signed by His Excellency, Prof Yemi Osinbajo, the then Acting President of the Federal Republic of Nigeria on May 18th, 2017. The key thrust of the Executive Order is that made-in-Nigeria products should be given preference in the procurement process of certain items such as motor vehicles, information and communication equipment and uniforms.”
The letter which was signed by the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, specifically listed five automobile companies that deserve such indigenous patronage.
The auto companies include: Innoson Vehicles Manufacturing Company Limited which assembles IVM brand; Stallion Motors Limited which assembles Nissan, Hyundai, Volkswagen, Changan, Skoda, Ashok Leyland and Honda brand; Mikano Motors Services which assembles ZNA, Rich 6 and Geely brand.
Others are: National Truck Manufacturing Limited which assembles T-King, Qingqi, Forton, Great Wall, King Long and Rexton brand and Proforce Nigeria Limited, a company that specialises in the assembly of armoured vehicles such as Armoured Personnel Carriers (APCs), armoured tanks, armoured Cash-In-Transit (CITs) vehicles, armoured SUVs. Proforce Nigeria Limited equally specialises in Tactical Armoured Vehicles (TAV), Unmanned Aerial Vehicles (UAV-drones), armoured saloon and sedan cars, bulletproof helmets, and vests, military trucks, Infantry Combat Vehicles (ICV), armoured boats and marine vessels.
According to the letter, the patronage of locally assembled vehicles will positively impact the manufacturing sector and bring significant gains to the Nigerian economy by creating jobs locally and empowering our local entrepreneurs.
It further stated that such patronage will equally stimulate investors confidence in the automotive sector and mitigating capital flights to other countries.
Other gains, according to the Ministry, include: providing opportunities for capacity building, technology development and transfer of knowledge as a result of the degree of assemblage that will be done locally and improving productivity of the automotive sector which will positively impact Nigeria’s Gross Domestic Product (GDP).
As part of the efforts geared towards improving local manufacturing of vehicles, Mikano recently opened a multi-product assembly plant for Geely passenger cars, Dongfeng pick-ups, Kama and CAMC commercial vehicles.
THEWILL recalled that Mikano officially signed the partnership with Geely in 2019. Geely is one of the world’s top automakers as they are the owner of Volvo Car Group and the biggest shareholder of Daimler AG (group to which Mercedes Benz belongs), its sales exceeded 2.1 million cars, placing it among the world’s top car manufacturers.
Commenting on the recently-launched Geely Coolray, Marketing Manager, Geely Nigeria Limited, Mrs. Karima Okunola, told THEWILL: “You already know Mikano as a trusted, proudly Nigerian name, renowned for being the leading solutions provider in Nigeria for almost three decades. The same level of quality products and services that has made Mikano stand out head and shoulders above others, is what is attached to being a part of the Geely Nigeria family.”
According to Okunola, “The Coolray isn’t just exceptionally appealing to the eye, given its striking aesthetic, people love that the car is the most hi-tech compact SUV in Nigeria, easily challenging even the mid-size SUVs in the legacy/luxury segment,” adding, “So, for lower price point, you get a total package. Not to mention the superior advantage of having a worry-free Mikano International protection warranty.”
While the National Truck Manufacturing Limited is doing very well in terms of local vehicles assembly, Proforce Nigeria Limited has equally made inroads in the areas of armoured vehicles production and other security related automobiles.
Stallion Motors Limited, on its own part has contributed, in no little measure to the development of local car manufacturing in the country. The company had late last year launched the locally assembled Hyundai Kona Electric (EV) in Lagos and Abuja respectively.
Stallion Group, the multi-dealership company representing Honda, Hyundai, Nissan, Volkswagen, Porsche, Audi, Skoda, Changan, Ashok Leyland through independent management did the elaborate Lagos version of the unveiling at VON, Automobiles Nigeria in Ojo area of Lagos, where the car was manufactured. The unveiling was done at a high-profile event attended by the Lagos State Governor, Mr. Babajide Sanwo-Olu.
Speaking at the event, Managing Director, VON Automobiles, Mr Rohtagi Manish, had explained the essence of the launch, pointing that Kona will change things positively in the Nigerian auto market.
Only recently, Vice President Yemi Osinbajo also drove the Kona electric assembled in Nigeria by Hyundai to the admiration of many Nigerians at an exhibition in Abuja. Earlier last year, the ruggedness and suitability of locally-assembled vehicles were put to test as the made-in-Nigeria vehicles headlined the 2020 edition of the annual Argungu Fishing Festival in Yauri, Kebbi State with the vehicles driven in a long convoy from Abuja to Kebbi.
As a way of providing options to Hyundai Kona Electric Vehicle (EV) customers, Stallion Hyundai Motors Nigeria, recently launched both locally assembled petrol-powered Hyundai Kona and all new 2021 Hyundai Grand i10 Sedan into the Nigerian market.
In terms of patronage for these locally assembled vehicles, Innoson Vehicles have also been getting a fair share of the market.
The auto company has recently added Imo State Government in the list of its numerous customers. Mr Oguwike Nwachukwu, the Chief Press Secretary/Media Adviser to the Imo State Governor, Senator Hope Uzodinma stated that the need to get durable, purpose-built vehicles at comparatively affordable prices and the desire to promote the local auto industry and boost the economy, informs the sustained preference of Innoson vehicles to foreign brands by the Imo State Government.
Nwachukwu explained that the repeat patronage of the brand is an indication that the vehicles usually serve the purposes for which they are procured, and do so satisfactorily.
Gov. Hope Uzodinma had on May 5, 2021 at a ceremony in Owerri presented a fleet of 100 patrol vehicles produced by the Nnewi plant to the state’s anti-crime/banditry outfit, Operation Search and Flush.
The vehicles included some units of the well equipped, and highly acclaimed IVM G12 special purpose vehicle already popular with the military; as well as the IVM (troops) Carrier usually at its best during off-road duties, used by many security outfits and can be spotted in the convoys of some government officials at various levels.
The new batch of automobiles came about one year after the state government procured 100 similar sufficiently equipped Innoson-badged operational vehicles for the inauguration of the security outfit in March, 2020.
Meanwhile, an affirmation statement from Innoson on the IVM Carrier pick-up supplied to the Imo State Government stated: “We designed the vehicle specifically for the African road. It comes with an innovative chassis, front double cross beam independent suspension and rear leaf spring dependent suspension, and socket shock absorber, which reduces bumping on the road effectively and enhances smoothness of vehicle.”
According to stakeholders in the nation’s automotive industry, such gesture is in line with the goals of the National Automotive Industry Development Plan (NAIDP) or Auto Policy.
First to react was the National Director-General of the National Automotive Design and Development Council (NADDC), Abuja, Jelani Aliyu, who said he is very proud of Innoson, and is not surprised that the Imo State Government has found the company’s vehicles very reliable and worthy of consistent patronage.
He said the NADDC would continue to support Innoson and other local assembly plants towards producing vehicles that satisfy the needs of the Nigerian market as well as other markets on the continent of Africa.
In his reaction, an auto industry stakeholder and Managing Director of Lafbart Innovations and Consulting Ltd, Akure, Femi Olafunmloye, lauded the governor’s love for the domestic auto industry, imploring other buyers to emulate the patriotic gesture.
Olafunmloye, whose company produces tricycle and fabricates agricultural support equipment and parts for light trucks, said: “Gov. Uzodinma has done what others find difficult to do, and that is: Patronise and encourage local players in the auto industry, like Innososn. That is how it is done in every serious country. State agents have to be using locally made vehicles. That his is how to create jobs.”
Also commending patronage of locally assembled vehicles, Dr. D.V.C. Obi, a strong advocate for a viable automotive, who until recently headed the Auto Group of the Manufacturers Association of Nigeria (MAN) , argued that if channeled inward, government purchases could lift the industry from its present bad situation.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
