NewStats: 3,263,199 , 8,179,381 topics. Date: Thursday, 05 June 2025 at 02:43 AM 5x4l2p

The nation's industrial development finance institution, Bank of Industry (BoI), has stated that it is fully convinced about the feasibility of automobile manufacturing in Nigeria and is ready to inject more funds to boost the industry.

The bank said it was impressed with Nigeria's determination to the league of industrialised nations like , Britain, United States, China, Japan with the unveiling of the first ever truly made-in-Nigeria cars by the Innoson Vehicle Manufacturing (IVM) Company Ltd, in Nnewi, Anambra State.

The Managing Director of BoI, Mr. Rasheed Adejare Olaoluwa, said having seen the progress made by the Innoson Group in automobile manufacturing, "we are prepared to work with other serious-minded automobile manufacturers and provide financing opportunities which they can take advantage of".

Unveiling the IVM Fox hatchback and the IVM Umu saloon cars at Innoson’s Plant in Nnewi, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, noted that the recent Auto Policy of the federal government, which he said had dramatically reduced the volume of imported cars by 20 per cent since its introduction, made the feat possible.

“This is another milestone under President Goodluck Ebele Jonathan who insisted on positioning industrialisation and value addition at the forefront of his istration’s developmental policies and I commend Innoson for making significant investments to show that he s our industrial policies,” he said.

He pointed out that President Jonathan had implemented policies that would diversify the country’s economy and sources of government revenue, given the fact that Nigeria has the raw materials to industrialisation and so far the policies are yielding the desired results.
Commenting on the local content analysis done on the IVM brand vehicles by the Nigerian Society of Engineers (NSE), which disclosed that the vehicles were made up of about 70 per cent locally-sourced contents, the minister pointed out that there was no country in the world that could boast of 100 per cent local content.

“Some OEMs do only 30 per cent but today we are all here making history in Nnewi, the Japan of Africa, where we have successfully produced 70 per cent local component cars which is one of the highest and when you talk about affordability, Innoson is the cheapest,” he said.
Aganga added that other global brands like Nissan and Peugeot were driving partnerships and capacity expansion in the country’s auto sector.

“As we talk of the fall of oil price, it has become critical that we cannot continue to import what we can produce here in Nigeria. We spend about $6 billion annually importing cars. However since the introduction of this policy, we have experienced a 20 per cent drop in imported cars and have exceeded expectations in a very short period,” he said.

According to Aganga, those who initially opposed the Auto Policy have decided to go into production.

“Without the political will of the president, we would have had a policy reversal with the amount of pressure that was mounted on us to drop it and we would not have been here unveiling these today,” he said.

He commended Innocent Chukwuma, the Chief Executive Officer of the Innoson Vehicle Manufacturing Company Ltd, for possessing a can-do spirit, which has propelled the company to dizzying heights of industrial success.

“Our industries deserve infrastructural and financial to reach their objectives and for Innoson those two critical components came from the istration of the former Governor of Anambra State, Peter Obi and the Bank of Industry (BoI),” he said.

Aganga pledged federal government’s continued patronage of locally manufactured products, stressing that in ing the Auto Policy it was established that government would only buy made-in-Nigeria cars and provide the needed for industries to excel and compete globally.

“We plan to open three auto component cluster parks in the countryand we need the governor of Anambra State (Willie Obiano) to sign an MoU and give us a piece of land and the C of O here in Nnewi and we would establish one of the three cluster parks here,” he said.

Making his remarks, Olaoluwa expressed the delight of the development bank in witnessing the historic event.

“In Nigeria today, there are many companies that are into the assembly of cars but today for the first time, we are actually manufacturing cars. The Nigerian Industrial Revolution Plan (NIRP) is beginning to bear fruits in the key areas of competitive and comparative advantages, where we can drive growth and development in the economy," Olaoluwa said.

He noted that Innoson is an exemplary customer of the bank, adding that this was the beginning of more good things to come from the Bank’s partnership with the company.

Also, President of the Nigerian Society of Engineers (NSE), Ademola Olorunfemi, disclosed that a few years ago when the body paid a visit to the vehicle plant, they were given an IVM bus to carry out a product analysis on it.

“We did observe that being an effort in the right direction, more needed to be done to introduce more local content into it and more.

"Today, within two years Innoson has improved on all our recommendations and increased the vehicles' local content up to 70 per cent which is not less than what is obtainable elsewhere in the world,” he said.

He said the Innoson Vehicle Manufacturing Company Ltd had been granted permit by NSE to use its seal, while the CEO, Chukwuma, would be inducted into the NSE hall of fame, making him the 19th person in over 60 years of the body’s existence to be so highly honoured.

He urged President Jonathan to muster all the political will at his disposal to mandate the use of only made-in-Nigeria cars by all MDAs.
Representing the Anambra State Governor, Willie Obiano, his Deputy Nkem Okeke commended the Innoson group for its developmental strides, value addition and job creation.

“It is not only through trade that a nation can develop, but through the conversion of our local raw materials into finished products. Therefore we will continue to Innoson and other well-meaning industrialists,” he said.

Okeke stressed that the only way a company like Innoson can develop is when the nation buys the products of local manufacturers.

“I thank BoI and I hope that what they have done for Innoson will be extended to other industries from this state in our quest to provide jobs for our citizens,” he said.

In his remarks, Chairman of the occasion and National President of the Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, noted that the feat of achieving the production of made-in-Nigeria cars was attained despite the challenging business environment which manufacturers are facing in the country.

“It is a testimony that the federal government’s Auto Policy is working. The automobile industry bill has not yet been ed by the National Assembly and we are all expecting that it will be done soon enough,” he said.

http://www.thisdaylive.com/articles/boi-pledges-more-investment-as-vehicle-importation-dips-by-20-/195685/

nice development indeed

hopy68:
nice development indeed

Yea

nice one

Thee bank said it was impressed with Nigeria's
determination to the league of industrialised nations like , Britain, United States, China, Japan with the unveiling of the first ever truly made-in-Nigeria cars by the Innoson Vehicle Manufacturing (IVM) Company Ltd, in Nnewi, Anambra State.

...Because some few cars were produced I feel so ashamed sometimes when these people talk. Gosh!! Even pipe borne water we don't get yet someone is spewing this trash.

These men are at best politicians. They lie and lick balls a lot.

News as such gives me hope about my country....all hand should be on deck to move this country forward


#lets do the right thing
#proudly naija

omenka:
...Because some few cars were produced I feel so ashamed sometimes when these people talk. Gosh!! Even pipe borne water we don't get yet someone is spewing this trash.
These men are at best politicians. They lie and lick balls a lot.

see them alway finding excuse to discredit Gej stration but will celebrate fashola commissioning of common street light.

omenka:
...Because some few cars were produced I feel so ashamed sometimes when these people talk. Gosh!! Even pipe borne water we don't get yet someone is spewing this trash.

These men are at best politicians. They lie and lick balls a lot.

IVM, just released pictures of their made in Nigeria cars, google and see for yourself

harrwix:
News as such gives me hope about my country....all hand should be on deck to move this country forward


#lets do the right thing
#proudly naija

I concur

omenka:
...Because some few cars were produced I feel so ashamed sometimes when these people talk. Gosh!! Even pipe borne water we don't get yet someone is spewing this trash.
These men are at best politicians. They lie and lick balls a lot.

i never believed it before, when i was told you are sick!

now i can comfirm!

ducii:


IVM, just released pictures of their made in Nigeria cars, google and see for yourself

I know. I've seen the pictures long time ago. What I'm saying is it is just sheer foolishness to start comparing Nigeria with those countries simply because we've produced some cars when we are yet to even put in place very basic stuffs of development like pipe borne water, electricity, eradicate hunger, and shelter for Nigerians.

Making such is statement at this point is simply playing a sycophant.

omenka:
I know. I've seen the pictures long time ago. What I'm saying is it is just sheer foolishness to start comparing Nigeria with those countries simply because we've produced some cars when we are get to even put in place very basic stuffs of development like pipe borne water, electricity, eradicate hunger, and shelter for Nigerians.

Making such is statement at this point is simply playing a sycophant.

I agree with you, on the aspect of comparing Nigeria to these other countries, but the fact still remainS that Nigeria is making giant strides. Venturing into areas where many thought impossible, even with the lack of infrastructure

ducii:


I agree with you, on the aspect of comparing Nigeria to these other countries, but the fact still remainS that Nigeria is making giant strides. Venturing into areas where many thought impossible, even with the lack of infrastructure

Well, I never thought producing cars in Nigeria is impossible, and it is indeed a laudable advancement. But you can't build a house on quicksand and expect it to stand.

Basic infrastructures like electricity have to be in adequate supply otherwise these products might be priced out of reach of average Nigerians, which I believe should constitute the bulk of their customers, due to their high cost of production.

The wealthy folks would still prefer their Toyotas, Hondas, Benzes, Bentleys, GMCs, BMWs, Ferraris etc, to any of the cars produced domestically. When you price products too high (which is inevitable sometimes if you don't wanna incure too much loses), you tend to get lesser patronage and that affects business adversely.

This is just the plain truth I was getting at that all those overly emotional and erratic kids up there are throwing insults here and there.

omenka:
Well, I never thought producing cars in Nigeria is impossible, and it is indeed a laudable advancement. But you can't build a house on quicksand and expect it to stand. Basic infrastructures like electricity has to be in adequate supply otherwise these products might be priced out of reach of average Nigerians which I believe should constitute the bulk of their customers due to their high cost of production. The wealthy folks would still prefer their Toyotas, Hondas, Benzes, Bentleys, GMCs, BMWs, Ferraris etc, to any of the cars produced domestically.

This is just the plain truth I saw getting at that all those overly emotional and erratic kids up there are throwing insults here and there.

Your assertions are true, I don't know how much the cars are price at, but i was thinking that cheap labour would offset most of the high cost incurred for lack of electricity supply.

I think I also read somewhere, where they said 70% of raw materials used in the car production are sourced locally.

ducii:


Your assertions are true, I don't know how much the cars are price at, but i was thinking that cheap labour would offset most of the high cost incurred for lack of electricity supply.

I think I also read somewhere, where they said 70% of raw materials used in the car production are sourced locally.

And I also saw somewhere one of those cars (not too sure it was innoson tho, but was manufactured locally) that could for a Kia Picanto priced at 1.5million!! I was like "nigerians would rather go for a 2001 Camry and pocket the change than buy the car at that cost". These are just stark realities my brother.

omenka:
And I also saw somewhere one of those cars (not too sure it was innoson tho, but was manufactured locally) that could for a Kia Picanto priced at 1.5million!! I was like "nigerians would rather go for a 2001 Camry and pocket the change than buy the car at that cost". These are just stark realities my brother.

Ok that is a bit steep for a Picanto, but if the banks give to the manufactures, by granting car loans or some sort of financial deals. I think that will go a long way in helping the manufactures.

ducii:


Ok that is a bit steep for a Picanto, but if the banks give to the manufactures, by granting car loans or some sort of financial deals. I think that will go a long way in helping the manufactures.

Absolutely. Something like mortgage financing.

You see, the whole stuff transcends just producing these cars. A lot has to be set in motion for such business to thrive. As it stands, it seems only the government and transporters are patronising them. My hope is that someone stops feeling complacent, roll up their sleeve, put their minds to task, put pen to paper and paper to policies that ensure these gains are not eroded before they come full bloom.

omenka:
Absolutely. Something like mortgage financing.

You see, the whole stuff transcend just producing these cars. A lot has to be set in motion for such business to thrive. As it stands, it seems only the government and transporters are patronising them. My hope is that someone stops feeling complacent, roll up their sleeve, put their minds to task, put pen to paper and paper to policies that ensure these gains are not eroded before they come full bloom.

I concur 100%

ducii:


I concur

I really wish d sector luck...but still a lot has to be put in place

ducii:


I concur 100%

I believe Omenka is mad! Access bank markets hyundai and soonest will introduce innosson. Secondly, no matter where the government started from the issue is the development stride has begun. Do you realise millions of people read news on nairaland daily? I always keep quiet but this is just too bad on your part. Please stop the negativity, what we need now is a positive mindset. End of story.

dickoflife:

I believe Omenka is mad! Access bank markets hyundai and soonest will introduce innosson. Secondly, no matter where the government started from the issue is the development stride has begun. Do you realise millions of people read news on nairaland daily? I always keep quiet but this is just too bad on your part. Please stop the negativity, what we need now is a positive mindset. End of story.

My brother I think Omenka has made some valuable points about lack of infrastructure in the sector. There is no mistaking that the sector needs a lot of .

Good or bad?

una nor sabi wait for person make e first comment??

Goodnews, atleast now we make our own cars. Who knows, may be by 2016, there would be no more car imports

Too lengthy

Good news...Jonathan is still going back to otuoke next year sha.

Ok...what am I supposed to say now



Ok



More power to their elbow

Morkavictor:
see them alway finding excuse to discredit Gej stration but will celebrate fashola commissioning of common street light.

such is life

All well, if the reduction is due to an increase in domestic manufacturing.

If we want to make the reduction more permanent.....Ajaokuta and Light are the two s!

omenka:
...Because some few cars were produced I feel so ashamed sometimes when these people talk. Gosh!! Even pipe borne water we don't get yet someone is spewing this trash.
These men are at best politicians. They lie and lick balls a lot.

[size=38pt]Seriously at first, i wondered what you're suffering from before i discovered you're a member of the Abiku People's Congress.[/size]

Good. The policy is making impact. Hope it does not imply more smuggling.