Nigeria National Petroleum Corporation has said that 30 vessels are to deliver an additional supply of 2.3 billion litres of PMS into the country till month-end February, 2022. The company told the National Economic Council in a virtual meeting of efforts it is making to resolve the current fuel crisis in the country. It said that NNPC as the supplier of last resort has continued to sustain adequate petroleum products supply and distribution to the Nation despite challenges associated with the unending waves of pipeline vandalism, product theft and Cross-border smuggling of PMS. NNPC’S strategy it said is on for restoring stability in PMS supply and distribution by boosting incoming PMS Supplies; recertification and release of In-country PMS Stock and enhancing distribution management.
Meanwhile it was learnt that the National Economic Council (NEC) has resolved to encourage the growth of the automotive industry in Nigeria by improving patronage of locally manufactured vehicles, just as the Council got assurances that the current fuel situation in parts of the country would be resolved by next week. Both of these issues form part of the discussions at this month’s National Economic Council meeting chaired by Vice President Yemi Osinbajo, SAN, with Governors, Federal Ministers and top officials in attendance. NEC is composed of all 36 State Governors, the Central Bank Governor and the Minister of the Federal Capital Territory alongside some other members of the Federal Executive Council.
Briefing NEC on the benefits of locally manufactured vehicles in the country, the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, said despite the potentials, the local automotive industry has been significantly plagued by several challenges such as weak demand for locally assembled cars, as well as lack of government patronage which could have assisted the assemblers in achieving economies of scale. The Council was told that the Nigerian Automotive Industry has been identified as one with a catalytic effect on the economy. Council was therefore called to note that the industry has achieved the following; $1billion in Foreign Direct Investments; 63 Licenses issued; over 30 Active Assemblers; demand for 400,000 vehicles per Annum; despite the potential, the industry has been significantly plagued by several challenges such as weak demand for locally assembled vehicles due to; lack of Government patronage to assist assemblers in achieving economies of scale; and; insufficient vehicle credit financing to stimulate private off-take.
Therefore, the Ministry hereby urges the State Governments to support the quest of driving Nigeria’s industrialisation agenda and job creation aspiration. The ministry outlined the benefits of the Automotive industry to the Nigerian economy to include: catalyst for driving mass production, local content and transfer of skills and knowledge; potential to stimulate growth in other sectors such as asphalt, wood gasoline and road construction. Enable Original Equipment Manufacturers (OEMs), achieve economies of scale and drive assembly capacity upwards; stimulate economic growth in other sectors such as road construction; prevent fledgling auto assembly companies and downsising of staff, therefore mitigating capital flights and development of other countries; Africa accounts for about 30% of the global Automotive Industry despite its strong demographic profile. Significant growth is expected to be witnessed in the African vehicle market due to demographic trends, low current base and AFCFTA impact; State Governments can utilise Locally Assembled Vehicles in addressing some of the challenges facing the Public Transportation System.
