Business
‘Low Patronage, Bane Of Local Automobile Industry’
The Inter-Ministerial Committee on the revival of the automobile industry has identified low patronage and high operational costs as factors militating against the smooth operation of local automobile firms.
Other problems, according to the committee, include low capacity utilisation and insufficient government protection in form of tariff control.
Mrs Josephine Tapgun, Minister of State for Commerce and Industry and head of the committee, said this on Thursday in Abuja while briefing Vice President Namadi Sambo.
Tapgun, who submitted a copy of the committee’s report to Sambo, said the body had recommended both long and short-term solutions to address the issues raised..
The issues centre on patronage, tariff, intervention funds, local content and affordable models of vehicles for the country.
Receiving the report, Sambo said government would take decisive measures to ensure immediate revival of the industry.
He, however, said the primary focus for now would be on the existing automobile outfits, adding that the issue of motorcycles and bicycles would be looked into later.
Sambo gave the assurance that government would examine the report and take action on it as quickly as possible.
He asked operators of the automobile industry to propose proper business models that would make their products more attractive to prospective buyers.
Reports have it that during the inauguration of the committee on June 4, Sambo had charged it to “critically examine the problems militating against the smooth functioning of automobile industries in the country.”
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