DESPITEvarious challenges confrontinglocal production of automobile,the management of National Truck Manufacturer (NTM), under the leadership of Mr. Ibrahim Bayero, recently resolved to sustainoperation activities throughthe company's three production lines, after sales outlets and other support facilities.Established in December 1975 by the administration of late military Head of State, General MurtalaMohammed, NTMcommenced operation asa joint venture, between the Federal Government and Fiat of France for the assembling of Semi Knocked Down (SKD) and CompletelyKnocked Down (CKD) trucks and agricultural tractors with an installed capacity of 7,000 trucks and 3,000 tractors.Between the times it was created and when it fully began operations in 1980 and when it closed shop in 1986, NTMproduced about 10,000 units of both products.Due to lack of patronage and alleged hostile business environment, NTM was closed down for about 17 years before it was privatised. The privatisation exercise paved the way for Art Engineering and Construction Limitedto acquire 75 per cent stake in NTM in March 2003.Conducting journalists round thecompany's production lines, recently in Kano, Bayero said thatNTM had the potential to contribute to the development of Nigeria's economythrough payment of more taxes, creation of numerous jobs among others.He also used the opportunity to appeal to all agencies of government to further empower the company, adding that the desire of government at the time of setting up the company was to encourage the Nigerian vehicle industry.After the privatisation exercise, Bayero explained that Art envisioned placing the company at the forefront of the Nigerian auto-manufacturing sector by assembling and manufacturing world-class passenger/commercial vehicles at competitiveprices.Bayero, who spoke on sundry issues related to the sector also used the opportunity to urge the Federal Government toput necessary legislation in place aimed at encouraging patronage of local assembly plants.He said: 'For Nigeria to realise her Vision 20:2020 target, there must be local content status in all facet of the economy.'Explaining further, Bayero said: 'Success for NTM is success forNigeria. We can make a map of Nigeria on the global stage as a formidable exporter of vehicles. We have the size and it would be good if we can strive to be a major supplier of vehicles to the West African region.'We are the largest assembly plant in West Africa, North Africa and in Nigeria. Our ranges of products are the highest in Nigeria.'We have done virtually all segments of assembling, but we are yet to go into assembly of passenger cars and we have three active line for these products as against one line most of our competitors here in Nigeria have.'If we are working at full capacity, it would translate into greater revenue drive and in turn enable us pay more taxes to the government.'We are advocating a stiffer duty differentials between imported fully built vehicles and completely knocked down vehicles. At present, the duty difference is only five per cent and that is having negative effect on local producers. We cannot compete favourable with these imported vehicles as our finished vehicles ends up being more expensive given the cost of production.'Besides, absence of an enabling policy and inconsistencies in policy formation by successive government is really affecting assembling of vehicles in the country.'For starters, we are advocating about 35 per cent duty difference between CKDs and FBUs. We have made presentations to government on these issues and we hope they would look into it and come out with strict policy statements that would be executed to the letter, because there is no economy anywhere that survives without a vibrant automotive sector.'We hope the present government will look into this and formulate policies that would revive the sector because those of us still in business are operating below capacity.'Other countries including some African countries such as Kenya, Algeria, Egypt and South Africa to mention but a few have always put in place strict measures and huge duties as means of discouraging importation of vehicles thus growing their various automobile sector.'Meanwhile, Bayero identified technical partners of the company as Qingqi, Great Wall, CNHTC and YTO Tractors of China.Explaining further, he said: 'We went for products that were affordable to Nigerians, and we chose the companies that were ready to partner with NTM. They have the same vision with us. They saw the possibility for expansion in the market size. And as the leading economy in West Africa, the opportunities were enormous.'He gave the NTM's areas of operation as light trucks, medium and heavy-duty trucks, pick-ups and sport utility vehicle segment, buses as well as tractors and agricultural implements.
Click here to read full news..
