Business
Reps Seek Bailout For Automobile Industries
The House of Represen
tatives on Thursday, urged the Federal Government to provide bailout funds to automobile industries in the country to save them from collapse.
The House also resolved to investigate the inability of the industry to access foreign exchange from the Central Bank of Nigeria (CBN) after adopting a motion moved by Rep. Saheed Akinade-Fijabi.
Moving the motion, Akinade-Fijabi expressed worry that persistent gesture to some automobile companies to establish their plants in Nigeria yielded no fruit.
He further expressed concern that a major automobile industry in Nigeria, Innoson was joining the league of industries and establishments shutting down operations in Nigeria.
“Nigeria had a breakthrough into automobile manufacturing industries with the commissioning of Innoson Motors to cut down the country’s dependence on importation of vehicles.
“In spite of the euphoria which surrounded its establishment as well as the expected contributions to the economy, it had joined the league of industries and establishments shutting down operations in Nigeria.
“Investigation reveals that Innoson Motors known for importation of basic motor components, including engines from abroad and assembling them locally is shutting down due to recession,’’ he said.
He cautioned that if the company was allowed to shut down, it will have negative effect on the country’s economy in the area of revenue and job loss.
“The industrial growth of which automotive industry is one, contributes to the nation’s development in terms of increased foreign earnings and job creation,’’ Akinade-Fijabi said.
Contributing, the House Minority Leader, Leo Ogor (PDP-Delta) said that the call to diversify from oil to manufacturing as a way of growing the economy made the motion germane.
Ogor said that there was need for the federal government to come up with clear cut policy on economic diversification.
According to him, Nigerians must work together to get the nation out of the woods.
“The country is in recession and our prayer is that we don’t move into depression”, he said.