ENGINEERING POLICY, LEGISLATIONS, PLANS & PROGRAMMES IN NIGERIA’s AUTOMOTIVE INDUSTRY. Being A Memorial Lecture By HR Engr. Otis Anyaeji KtSGG FAEng FNSE FAutoEI, Obi Onowu II n’Okija at a Public lecture in Honour Of Late Engr. AUGUSTINE IKEBUDE OKOLO FNSE FAutoEI FNIMechE. Holden @ The AUDITORIUM OF The NATIONAL ENGINEERING CENTRE CENTRAL BUSINESS DISTRICT, ABUJA, MARCH 7, 2024.
1 PROTOCOLS/ INTRODUCTION
We have come here not to bury Engr. Augustine Ikebude Okolo FAutoEI FNSE, but to honour him. And I will quickly add, to also eulogize him.
I will thus start this lecture with excerpts from the Tribute one wrote on him in July 2020, after he had passed. This will be part of the part on eulogy. Thereafter I will take a dive into topic for the day. That will start with a look at the constitutional imperatives for strategic management of the political/socio-economic systems of the country. We will then look at the place of policy, legislations, and plans in the continuing effort of state building. How programmes and projects ensue from these efforts will then be examined. The question of funding for the realization of these programmes and projects will also be attended to.
The dichotomy between ‘state’ and ‘nation’ will be briefly brought under focus. This is one of the issues I remember Engr. Austine Okolo FAutoEI for.
3 TRIBUTE TO THE CONSUMATE AUTOMOTIVE ENGINEER
3.1. When the Council of the Nigerian Society of Engineers mandated me to establish the Automotive Engineering Division in 2006, my calculation was that Lagos was the best positioned location for rapid professional level cross-fertilization of ideas, in the mobility engineering fields.
For a number of years one increasingly tried with decreasing success to get an automotive professional association take root in Eko. One later realised that for as many times as one would sow seeds on rocky ground, for so long will a few of such seeds germinate, but fail to take root.
In 2010, I met the gentleman, Engr. Augustine Ike Okolo FNSE who simply introduced himself as an Engineer from PAN Limited (manufacturers of Peugeot vehicles in Nigeria). He offered to assist in midwifing the Automotive Division NSE to healthy existence. Whenever I called for a meeting in Lagos, he would unfailingly show up. When on one occasion I scheduled a meeting in Lagos, and he was the only one that turned up, all the way from Kaduna, I voiced out during “Any Other Business” that if he could come from Kaduna, and I from Abuja, and no one came from Lagos, it might be easier for the latter group to show up if the meetings are held in Abuja or Kaduna.
3.2. One then fixed the next meeting in Abuja. Engr. Okolo came with ten other Engineers from the auto industry, Kaduna. Only three Engineers came from Abuja. This again got me thinking. Should we continue to have the meetings in Abuja and have more than 10 Engineers come from Kaduna, and just a few one can count on one hand attend from Abuja. When this scenario repeated itself on two occasions, I beat everybody to it and scheduled the next meeting for Kaduna.
Meanwhile, Engr. Okolo’s contributions at the meetings were of highest professional grade. Not entirely surprising, as it turned out that he was General Manager Operations PAN Limited Kaduna. He had responsibility for managing the production activities in all the factories at the Peugeot Plant in Kaduna. I progressively began to see that Engr. Okolo was interested in more than Mobility Engineering. He felt strongly that for mobility (Automotive, Locomotive, Marine, Aeronautical, Space) Engineering to succeed, Transportation Engineering must be gotten right.
Attendance at the meetings in Kaduna used to hover at between 40 to 50 Engineers. Naturally, Engr. Okolo was elected Vice Chairman of the Institute. We also decided to have the headquarters of the Institute in Kaduna. From then, I identified him as a worthy successor in the office of Chairman, Automotive Engineers Institute.
3.3. My confidence in Engr. Okolo was further bolstered when at the end of 2010 I listened to him make a presentation on Vehicular Emission Control to an appreciative audience. This was at the NSE International Conference, December 2010, Abuja. Incidentally, one won election as Vice President NSE during the AGM 2010 in Abuja. Thus in January 2011, President Olumuyiwa Alade Ajibola FAEng appointed me to the Corporate Resources function, which incorporates the annual conference planning responsibility. Immediately the Conference theme was approved i.e. Transportation Development in Nigeria, Engr. Okolo informed me that he was preparing to make a presentation at the 2011 NSE Conference. I was expecting from him a paper from the perspective of mobility, precisely on Automotive Engineering. To my greatest surprise he came from the angle of “An Overview of Urban Transportation in Nigeria & Sustenance of its Strategic Development.
In this presentation, Engr. Okolo’s point of departure was that urban economy and development is dependent and influenced by transportation. He then stated that owing to the inter dependency of various relevant factors, cautiously planned and incorporated transport facilities are imperative for urban areas. He pointed out that most transport facilities had failed due to lack of proper planning and design. And then he highlighted those considerations of pedestrians and non-motorized vehicle users had been neglected or were completely non-existent. The effect of this, he explained, is the creation of messy mixture of traffic on our roads, even worsened by lack of parking spaces. He then lauded the adoption then of Vision 20:2020 and added that if the Vision Programme is sustained,
it would lead to astronomical growth in the development of transportation infrastructure in Nigeria.
He concluded by recounting that the World Bank’s Institutional and Financial Reforms prescribe establishment of Road Fund for road maintenance, and private sector participation through concessions. He then reiterated that one important pre-condition to assure sustainability of the urban transportation system development in Nigeria is the establishment of a road fund with clear legal backing and non-reliance on government budgetary allocations. His was my best paper in that conference. Nigeria is yet to realise this advice. Alas this is year 2020. Vision 20:2020 is gone with the wind, and a major milestone of year 2020 is that Engr. Augustine Ikebude Okolo FAutoEI died. What a country!!!
3.4. Engr. Okolo succeeded me as Chair AutoEI in 2012. In my second year as Deputy President/President-Elect NSE (2015), Engr. Okolo as Chair AutoEI kept asking what the Institute would contribute to the programme of activities marking my Investiture as President Nigerian Society of Engineers, come January 2016. Eventually, we settled for a Pre-Investiture Workshop on “Standards for Motor Vehicle Repair Garages”. The Workshop organised by Engr. Okolo harvested standards that form the bases of possible regulation of automotive vehicles maintenance in Nigeria. AutoEI should promote the implementation of the standards and commencement of regulation of auto vehicles repair and maintenance in honour of Engr. Okolo.
By the time one assumed office as President NSE, it was clear to me that the key success factor in that position is a keen knowledge of experts in various specialisations in the different disciplines of Engineering, and when and how to avail and deploy their skills. I arrived at the office knowing fully well that on issues of automotive engineering in whatever form, all I needed to do was remit same to Engr. Austine Okolo. And I could then go to sleep.
3.5. I recall that in February 2016, the House of Representatives Committee on Federal Road Safety Commission invited the Nigerian Society of Engineers, and other stakeholders to submit Memoranda on the introduction of Outdated Speed Limiter Technology by the Federal Road Safety Commission (FRSC). Engr. Okolo drafted the NSE position in which the Society aligned herself with the FRSC on the use of speed limiters in vehicles because of the benefits of better safety by avoiding over speeding; reduced strain on engines, thereby increasing the life of engines; increased fuel and operational efficiency; reduced maintenance cost for vehicle owners; reduced pollution thereby improving the environment, etc.
Later in October 2016 when I desired that the Society make a diagnostic intervention on the various sub-sectors of the manufacturing sector, Engr. Okolo summarized the challenges affecting the automotive sector in Nigeria as follows.
“The industry’s decline has been caused by challenges which include infrastructural inadequacies and macro-economic instability leading to low level of output, high cost of production, low capacity utilisation, poor logistics, etc. All these combine to add significant costs to production of vehicles in Nigeria.
He then explained further that the number one problem for auto firms in Nigeria is deficit in physical infrastructure, followed by lack of access to credit, insufficient demand, high cost of imported raw materials, poor access to foreign exchange for procurement of vital raw materials, completely or semi knocked down parts.”
Engr. Okolo proposed solutions to overcome challenges of the sector as follows.
“To succeed in revamping the Nigerian automotive sector, it would do the country a lot of good if the Nigerian Automotive Industry Development Plan (NAIDP) receives legislative endorsement and be fully implemented. The NAIDP will liberalise the Nigerian automotive sector, and this liberalisation will increase Foreign Direct Investment and induce competition, leading to significant productivity gains. Local supply capacity will be enhanced with strategic deployment of industrial parks across the country. The Plan will also create conducive ambience that will attract OEMs to set up vehicle assembly operations in Nigeria. It will also improve ease of buying cars in Nigeria through provision of appropriate vehicle acquisition schemes.”
This diagnosis and prescriptions were adopted by the Society and resonated with the two Chambers of the National Assembly.
3.6. In July 2017, when the Senate Committee on Federal Character & InterGovernmental Affairs convoked a stakeholders’ meeting on the new policy of speed limiting device, Engr. Okolo represented the President NSE and elucidated techno-economic principles that helped douse the tension generated by cost of acquisition of the device. This he achieved by throwing more light on the win-win aspect to both vendors and vehicle owners.
Engr. Okolo was the best a Homo Sapiens could be. I never saw him without a smile on his face. It is particularly not in good taste that I have, within a period of two months, to be writing tributes to mourn two of the greatest automotive Engineers produced by this country viz Engr. Ibrahim Khaleel Inuwa OFR, FAEng, B.Sc MechE M.Sc AutoE, and Engr. Augustine Ikebude Okolo B.Sc MechE, M.Sc AutoE, MBA FNSE FAutoEI, FNIMechE.
4 CONSTITUTIONAL IMPERATIVES FOR STRATEGIC MANAGEMENT
Chapter II of the FRN Constitution 1999 on The Fundamental Objectives & Directive Principles of State Policy stipulates that it shall be the duty and responsibility of all organs of government, and all authorities and persons, exercising legislative, executive or judicial powers, to conform to, observe and apply the provisions of this Chapter of the Constitution.
In furtherance thereto Sec 15. -(3) (b) states, ‘For the purposes of promoting national integration, it shall be the duty of the State to – …
(a) provide adequate facilities for and encourage free mobility of people, goods and services throughout the Federation…”
Sec. 16.-(1) requires that “The State shall, within the context of the ideals and objectives for which provisions are made in this Constitution-
(a) harness the resources of the nation and promote national prosperity and an efficient, a dynamic and self-reliant economy; .
(c) without prejudice to its right to operate or participate in areas of the economy, other than the major sectors of the economy, manage and operate the major sectors of the economy; .
(2) The State shall direct its policy towards ensuring –
(a) the promotion of a planned and balanced economic development;
(b) that the material resources of the nation are harnessed and distributed as best as possible to serve the common good;
Under the Social Objectives Section. 17.-(3) stipulates:
“(3) The State shall direct its policy towards ensuring that- .
(b) conditions of work are just and humane, and that there are adequate facilities for leisure and for social, religious and cultural life;
(c) the health, safety and welfare of all persons in employment are safeguarded and not endangered or abused;
(d) there are adequate medical and health facilities for all persons;
The Educational Objectives of the Constitution Sec. 18.-(2) stipulates that
(2) Government shall promote science and technology; while the Foreign Policy Objectives Sec. 19. (a) stipulates “promotion and protection of national interest, Sec.
19(c) “promotion of African integration and support for African unity, Sec. 19(e) promotion of a just world economic order.
The Environmental Objectives Sec. 20 stipulate “The State shall protect and improve the environment and safeguard the water, air and land, forest and wild life of Nigeria.
There is also the Directive on Nigerian Cultures Sec. 21 – “The State shall- …
(a) encourage development of technological and scientific studies which enhance cultural values.
There are other provisions of the Constitution of FRN which imply the application of strategic management, but we shall use the cited provisions as guide.
5 POLICY
Chapter II of the Constitution of FRN outlines the fundamental obligations of the Government as objectives in the political, economic, social, educational, foreign, environmental, cultural, and mass communication spheres. The Chapter is titled, “FUNDAMENTAL OBJECTIVES AND DIRECTIVE PRINCIPLES OF STATE POLICY.” This underscores the fact that government does its work basically through policy formulation and implementation in the various sectors of government business. It is from these policies that plans and legislations flow.
In the 1st Republic, FGN used to carry out 5-year Development Plans. This continued as 1st , 2nd, & 3rd Development plans, till the Babangida Presidency discontinued that usage. He replaced them with Perspective Planning (25 years term), and rolling plans (3 years term), which are supposed to be more efficient. But looking back, it appears more was accomplished using the 5-year DPs, over a shorter period, than was achieved with the Perspective/Rolling Plans, through a longer period.
5.1 NIGERIAN INDUSTRIAL POLICY 1980
FGN published the document ‘Nigerian Industrial Policy & Strategy: Guidelines to Investors’, in 1980. It was a compendium of the basic information which investors require to guide and assist them in their investment decisions and the day-to-day operation of their manufacturing industries in Nigeria.
Under ‘Industrial Policy and Objectives’ it was explained that the direction of governmental action in the industrial sector shall be to encourage and promote directly and indirectly rapid development of manufacturing and allied activities as a major factor in the overall economic prosperity of the nation and as positive input into the attainment of social goals. It further said that GOVERNMENT REGARDS INDUSTRIALIZATION AS SINE QUA NON IN NATIONAL EFFORTS TO ACHIEVE THE DEGREE OF SELF-RELIANCE AND CONFIDENCE WITHOUT WHICH A NATION CAN NEITHER HAVE THE STABILITY NECESSARY FOR SOCIAL PEACE AT HOME NOR MUSTER THE RESPECTABILITY AND MEANS REQUIRED FOR MEANINGFUL INVOLVEMENT IN INTERNATIONAL AFFAIRS AND INTERACTIONS (capitals mine).
The Policy Objectives also did say that to ensure that industrialization brings in its wake truly beneficial economic and social development, the proposals for the establishment and operation of industries in Nigeria must take due cognizance of the following objectives. These include, Maximization of Local Value-Added, with particular attention paid to, utilization of local raw materials, agro-based industries, linkages, backward integration, manpower development, technological development. Other objectives the proposals should pay attention to are, Research & Development, Employment Generation, Steady Growth of Technological and Material Self-Reliance, Promotion of Export-Oriented Industries, and Industrial Dispersal. On the latter, the policy was that the aim of Government was to encourage the dispersal of industries throughout the country, in order to check excessive concentration of industries in a few areas, with adverse consequences on the adequacy of infrastructural facilities and environmental sanitation. It was additionally hoped that this dispersal would help check unhealthy population drift and promote balanced development of the economy as a whole.
5.2 INDUSTRIAL STRATEGY OF THE INDUSTRIAL POLICY 1989.
In aid of the realization of the industrial policy objectives, an industrial strategy was mapped out to address issues like Incentives to Industries. Under the latter, concessions like Pioneer Status, Approved Users Scheme, Accelerated Depreciation of Capital Investment, Customs (Drawback) Regulation, Dumped and Subsidized Goods Acts 1958, Graduated Excise Tax Reduction for Local Value-Added, Fully Integrated Agro-Based and Food Processing Industries, Research & Development. On the Graduated Excise Tax Reduction for Local Value-Added , all manufacturing industries are expected to achieve a minimum of 50% local value-added as their contribution to national economic development. To achieve this, manufacturing establishments in the country should render annual returns to the Ministry of Industries, giving a breakdown of their output to show local and imported components. They will be entitled to excise duty concessions to determined from time to time, depending upon the extent of local value-added they are achieve.
On R&D, the policy document prescribes that as far as possible, R& D should be done inhouse or given to a recognized Nigerian Research or Consultancy Organisation, requiring that prior approval should be obtained when the use of a foreign organisation is intended. The strategy also spelt out the institutional framework – The Industrial Development Coordination Committee, Infrastructural Facilities: Disadvantaged Areas, Incentives for Dispersal of Industries, Financial Arrangements for Industries, The Role of Government, Encouragement of Private Initiative, Manpower Development, Technology Development and Transfer, Industrial Research, Data Bank, Quality Control, Small-Scale Industries, Industrial Free Zones, and Priority Industries.
Under the latter, it was stated that at that time the following industries were rated very high by Government and would be favoured in the administration of incentives : Agro-based and Food Processing Industries, Building Materials Industries, Engineering and Transport Industries (including manufacture of component parts for the vehicle assembly plants), Chemical Industries, particularly Pharmaceutical Industries and Downstream Petroleum-Chemical Industries, Scientific Instruments and other Educational Equipment Manufacturing Industries, Telecommunications Equipment Manufacturing Industries, Electrical and Electronics Manufacturing Industries, as distinct from mere assembly of imported components, House-hold Equipment and Furniture.
5.3 INDUSTRIAL POLICY OF NIGERIA 1989
Early in 1989, the Federal Government launched the Industrial Policy of Nigeria. This document dealt with Policies, Incentives, Guidelines and Institutional Framework.
The elements of the policy objectives were:
* Providing greater employment opportunities;
* Increased export of manufactured goods;
* Dispersal of industries;
* Improving the technological skills and capability available in the country;
* Increased local content in industrial output;
* Attracting foreign capital, and
* Increased private sector participation in the manufacturing sector.
The Policy document highlighted a number of steps government was to take by way of strategies and Policy Measures as follows:
* encouraging increased private sector participation in the industrial sector, and privatizing and commercializing holdings in certain existing industrial enterprises;
* playing a catalytic role in establishing new core industries;
* providing and improving infrastructural facilities;
* improving the regulatory environment;
* improving the investment climate prevailing in the country;
* establishing a clear set of industrial priorities, and
* harmonizing industrial policies at Federal, State and Local Government Levels.
On the increase of private sector participation in manufacturing, the government sought to achieve that through the strategy of privatization/commercialization of the public sector investments. Thus, FGN went ahead to completely divest itself of holdings in 67 companies, while some companies were to fully commercialized, and others considered strategic for that moment were to be partially privatized/commercialized. Decree No. 25 of 1988 took care of this initiative.
The Government in a determined effort to reduce the debt burden of the country, and thereby improve the investment climate especially in the critical areas of the economy, established a Debt Conversion Programme. One of the objectives was to improve Nigeria’s external debt position by reducing the stock of outstanding foreign currency denominated debt in order to alleviate the debt service burden.
The Policy then dwelt on Incentives to Industry, designed to promote investment, employment, product mix and various other aspects of industry. The package of incentives were grouped as follows:
* Fiscal measures on taxation and interest rates
* Effective protection with import tariffs
* Export promotion of Nigerian products
* Foreign currency facility for international trade
* Development Banking.
There were also Guidelines to Investors and the Institutional Framework for the implementation of the policy.
The Nigerian Enterprises Promotion Decree of 1977 was amended making it permissible for foreigners to own up to 80% equity interest in Enterprises in Respect of Which Nigerians Must Have a Minimum of 20% Equity Interest (Schedule 3). Also companies with 51% (and above) Nigerian ownership are henceforth considered as indigenous companies, and so could invest in or form partnerships for Enterprises in Respect of Which Nigerians Must Have a Minimum of 60% Equity Interest (Schedule 2 Enterprises).
The only mentions of automotive industry in the Policy document are in the list of (i) Enterprises in Which Equity Held Shall Be Partially Privatized, and (ii) Enterprises in Respect of Which Nigerians Must Have a Minimum of 20% Interest in Equity structuring.
5.4 NATIONAL AUTOMOTIVE POLICY 1993
In 1990 one was appointed Alternate Chairman of the Standing Technical Committee on the Nigerian Automotive Industry, with the Hon. Minister of Industry as the Chairman. While agonizing on solutions to the decline of the Automotive Industry in Nigeria, one tried to determine how the Country’s Industrial Policy could come to the rescue. I had
access to the various agreements FGN had with Assembler Technical Partners (Peugeot, Volkswagen, Fiat, Leyland, Steyr, Mercedes-Benz). One tried to see any misalignments with extant Industrial Policies, and what remedies could be availed. It was then discovered that both the Nigerian Industrial Policy & Strategy: Guidelines To Investors (1980), and The Industrial Policy of Nigeria (1989) were not responsive to the needs and requirements of the automotive industry in Nigeria. It was also not responsive to the needs and requirements of any industrial sector in Nigeria. I obtained proposals from automotive assemblers, auto components manufacturers, reports on studies on the Nigerian Automotive Industry from the library of the Federal Ministry of Industry. I also found out that countries that have successful auto industries each had Automotive Policy, and did not rely on omnibus Industrial Policy. It became clear to me that the solution to the chequered history of the Nigerian Automotive Industry, lay with the formulation of a focal dedicated Automotive Policy. I then had the task of convincing members of the Standing Technical Committee on the Nigerian Automotive Industry of the need to develop a national policy for the automotive industry. It was tough luck. Each member agreed there was need for such policy, but felt since it would take many years to realize, the Committee should focus on lower hanging fruits. Many of them cited the unsuccessful experience with the National Transportation Policy, which after many years of motions had no movement. I still with a lone voice brought up the issue of developing a focal national policy for the automotive sector in the meeting of the STC. As expected all the members of Committee spoke against the policy idea for that point in time. When all had spoken, the Chairman, the Hon. Minister of Industry, Maj. Gen. Dr. A. B. Mammam OFR, in summarizing the deliberation , said he did not see the basis of turning down an offer from someone to prepare a draft of a policy document, at no cost to the government. He then ruled that I prepare the draft policy as I proposed, and submit that at the next STC meeting. As promised, one presented a draft National Automotive Policy at the meeting of STC on 11th November, 1992. In the absence of the Hon. Minister, one had the privilege of chairing the meeting, as the Alternate Chairman.
In reporting the outcome of the meeting in respect of the NAP, I wrote as follows:
“The undersigned presented the Draft NATIONAL AUTOMOTIVE POLICY document prepared on behalf of the Monitoring & Regulations Sub-Committee, to the STC. The Author had recourse to the following relevant information sources:
i. Report of the In-depth Study of the Nigerian Automotive Industry dated March 1983.
ii. Report of the Committee on the Review of Aspects of the Automobile Industry in Nigeria dated October 1985.
iii. UNIDO Development and Transfer of Technology Series on “The Manufacture of Low-Cost Vehicles in Developing Countries.”
iv. Draft Proposal on “The National Automotive Development Policy” by Nigerian Automotive Manufacturers’ Association (NAMA) June 1992.
v. Decisions of the Standing Technical Committee on the Nigerian Automotive Industry 1990 to date.
This meeting recorded full attendance and the Draft Policy was exhaustively discussed over a period of seven and half hours with members skipping lunch. Every member present at the meeting made contributions to enhance the draft. At the end of the deliberations Engr. (Dr.) M. Akinrele moved a motion that the draft National Automotive Policy as amended during the meeting be adopted by the STC on NAI as the NATIONAL AUTOMOTIVE POLICY. The motion was seconded by Engr. (Dr) A. Aliyu, and subsequently unanimously adopted by the STC.
It is my pleasure Honourable Minister Sir, to present to your most noble self, the NATIONAL AUTOMOTIVE POLICY approved by the Standing Technical Committee on the Nigerian Automotive Industry, for your necessary and urgent action towards the adoption by the Federal Government of Nigeria of the Policy document under reference”.
The draft Policy adopted by STC had sixteen Chapters in the following heads
1. Introduction
2. Establishment of the Automotive Industry in Nigeria
3. Rationalization of the Automotive Industry
4. Models of Vehicles
5. Local Content
6. Implementation Plan
7. Ownership
8. Technology Acquisition
9. Central Facilities & Infrastructure
10. Finance
11. Protection
12. Highway & Traffic Engineering
13. Hire Purchase
14. Standardization
15. Legislations
16. Institutional Framework
The Hon. Minister Gen. Mamman immediately briefed Mr. President, and secured his approval of the National Automotive Policy, in December 1992.
Shortly after in January 1993, Gen. Mamman was succeeded by Alh. Aminu Saleh, as Hon. Secretary of Industry. The latter insisted on presenting the NAP to the Federal Executive Council for endorsement. Before then he said the Policy was written in
engineering language, and that he would prefer that the Policy be rendered in government language. He then set up a committee and gave them guidelines on how to reformat the Policy document. When the committee completed their assignment he asked them to send their product to me to confirm the content is still consistent with what was envisioned.
The Policy Document was now in nine chapters, but containing everything in the original sixteen chapters. The chapters then became:
1. Introduction
2. National Policy Objective
3. Establishment of an Integrated Automotive Industry in Nigeria
4. Rationalization and Standardization of Industry
5. Component Parts Import Deletion Programme
6. Private Sector Participation
7. Technology Acquisition
8. Fiscal, Monetary Incentives and Protective Measures
9. Institutional Framework.
After I confirmed to the review committee that their work was consistent with the vision of the author, the National Automotive Policy was endorsed by the Federal Executive Council, and eventually launched by Chief Ernest A. O. Shonekan GCFR Chairman of Transitional Government, at the Manufacturing Plant, Peugeot Automobile Ltd. Kakuri, Kaduna, on Monday, August 23, 1993.
So much for Policy.
6 PLANS
Once a policy for a sector is in place, the next task is to make plans for the realization of the objectives of the Policy. For example, for the National Automotive Design & Development Council (NADDC), vide NADDC Act 2014 some of its functions like, “regularly study and review the automotive parts and component development industry in Nigeria”, “ evolve a local content development programme specifying which components and parts are to be continually deleted from the imported Completely Knocked Down (CKD) parts; “encourage the development and production of raw materials such as metal sheets, alloys and special steel needed by the automotive industry…”, etc, necessitate planning that will lead to legislations, programmes and projects. Although some planning has been going on since 1993, when the Council came into being, a formal plan for the sector was published in 2015 titled, “NIGERIAN AUTOMOTIVE INDUSTRY DEVELOPMENT PLAN (NAIDP). This plan had elements of :
i. Industrial Infrastructure (Automotive Supplier Parks & Clusters)
ii. Skills Development
iii. Standards (Safety and Products)
iv. Investment Promotion (Fiscal Measures, Checking Smuggling, Policy Consistency)
v. Market Development ( Affordable vehicles, Vehicle Purchase Scheme, Patronage)
The NAIDP listed twelve major Assemblers, one assembler for cars, and eleven for pickups/buses/trucks/ tanker bodies/Armoured vans/jeeps, and posted a collective annual capacity of 68,820.
In May 2023, NAIDP 2023 was launched. It dealt with the following key issues:
* Key industry development objectives by 2033
* Growth of vehicle production to 200,000 units
* Transition from SKD to CKD
* increase local content of assembled vehicles to 40%
* Attain Electric Vehicle Production of 30% of Local Production
* Master Plan –
* Investment Promotion & Fiscal Incentives
* Local Auto-Component Capacity Building
* Market Expansion &Trade Facilitation
* Skills acquisition & Development
* Technology Development & Innovation
* Etc
In 2023 there were 32 automotive assemblers licensed to operate in Nigeria.
Meanwhile one of the functions of NADDC (formerly NAC) is to “appraise and recommend new models of vehicles envisaged for the Nigerian market to ensure MODEL RATIONALISATION.”
Chapter 4 of National Automotive Policy on “Rationalisation and Standardisation of the Automotive Industry has the policy plank that “The viability of automotive manufacturing plants shall be pursued through the consolidation and restructuring of the existing assembly plants and rationalisation of models/brands, and standardization of spare parts of vehicles produced.”
This policy measure was put in place for the objectives of …To create the volume necessary for as many vehicle and components as possible to be produced locally with less frequency of line changes…, and “to create sufficient demand for the vehicle and auto components manufacturers, inter Alia.
Here we have a case as in NAIDP 2014, of planning, and implementing a plan, against the express provisions of the National Policy, and Infact against common sense.
To underscore the importance of planning in industrial and utilities sectors, there is need to study, and borrow a leaf from recent happenings in the Nigerian electric power sector. Part II of the Electricity Act 2023 is titled “National Integrated Electricity Policy and Strategic Implementation Plan. It mandates the Hon. Minister of Power to initiate the process for the preparation and publication in the Federal Government Gazette an INEP&SIP, within one year from the commencement of the Act (Sec. 3(1). Periodic review or revision of the National Integrated Electricity Policy is required vide Sec. 4 (1) , not later than every five years. This integrated approach is recommended for adoption by Federal Ministry of Industry & NADDC.
7 LEGISLATIONS
Having got a policy, there is then the imperative of saving accomplished works, giving effect to certain policy intendments, and coming around with required regulations, through legislations, rules, regulations, orders, etc.
Thus we prepared the drafting instructions for the establishment of Centre for Automotive Design & Development which was promulgated as Decree No. 107 of 1992. The same thing was done in respect of the National Automotive Council, that was promulgated as Decree No. 84 of 1993, which was amended by Act No. 10 of 2007. Both the Decree No. 107 of 1992 and Decree No. 84 of 1983 , were repealed, with the merger of CADD and NAC, and the change of their name to National Automotive Design & Development Council (NADDC), with Act No. 6 of 2014.
These legislative games are just the tip of the iceberg, viewed against the many legislations required for the full realization of the National Automotive Policy.
8 PROGRAMMES & PROJECTS
It is from Plans that Programmes to address needs in political, economic, social, educational, foreign policy, environmental, and cultural objectives will ensue.
Within the Programmes which address national or regional solutions to given issues, will be Projects that will address the particular communities’ aspects of the national programmes.
For the establishment of an integrated Automotive Industry in Nigeria to work, Policy, Plans, Legislations, Programmes and Projects would also work on a statutory integrated basis.
Some programmes that can be gleaned from the NAIDP 2023 are the key development targets in the Key Industry Development Objectives By 2032 viz,
* Growth of vehicle production to 200,000 units
* Transition from Semi Knocked Down to Completely Knocked Down/Completely Built Unit mode of manufacturing.
* Increase in the local content of assembled vehicles to 40%
* Attainment of Electric Vehicle Production of 30% of local production.
Each of these programmes will comprise many projects for works, goods, and services.
9 FUNDING
NAIDP 2023 projects that funding for the programmes under it will be from:
* 50% of the import duty charged on all auto vehicles and components.
* Budgetary allocation.
* Donor funding.
* Vehicle finance schemes.
Although Sec. 10. – (1) of the NADDC Act 2014 stipulates that – “ The Council shall establish a fund which shall consist of: (a) two per cent of the Cost, Insurance and Freight (CIF), value of all imported automotive Fully Built Units (FBU) and auto component spare-parts and Semi-Knocked Down Units…”, it is surprising that the NAIDP 2023 on enablers, was talking about reviving the Nigerian Automotive Development Fund, to be funded by 15% of the import levy on new and used vehicles.
Policy based finance is advocated for the automative industry.
10 NATION-BUILDING OR STATE-MAKING (NIGERIA STATE OR NATION?)
Our leaders since before independence have been bogged down with “nation building”. Even in 2014 we had empanelled a “National Conference”. If you ask Mr. President or Mr. Governor to state in two words what his occupation is, each is likely to say “Nation Building”. This is where we as a people missed the point.
What is “Nation”? What is “State”? Hannah Arendt (2000) in hinting at “a secret conflict between state and nation”, actually dramatically differentiates between “Nation” and “State”. Hear her,
“The nation presents the “milieu” into which man is born, a closed society to which one belongs by the right of birth; and a people becomes a nation when it arrives at a historical consciousness of itself; as such it is attached to the soil which is the product of past labour and where history has left its traces. The state on the other hand is an open society, ruling over territory where its power protects and makes law. As a legal institution, the state knows only citizens no matter of what nationality; its legal order is open to all who happen to live on its territory.”
Richard Beiner (2000) explains that the state, far from being identical with the nation, is the supreme protector of a law which guarantees man his rights as man, his rights as citizen and his rights as a national.
The correct interpretation of who we are and where we are coming from is that Yoruba is a nation. Igbo is a nation. Hausa is a nation. Fulani is a nation. Efik is a nation. Ijaw is a nation. Ditto Urhobo, Itsekiri, Edo, Ibibio etc. This is what the constitution of FRN 1991 says where in chapter II section 14 it says “The Federal Republic of Nigeria shall be a State based on the principles of democracy and social justice”.
Nigeria is thus not a nation, but a federal union of a multi-national state. Weber consigns the concept of nation to the sphere of values: culture, language, religion, ethnicity, homeland, shared memories and history, a specific sentiment of solidarity in the face of other groups or people.
The task before the leaders of Nigeria before Independence, and up till now, and in the future is not the creation of a nation through nation-building, but rather to build a Union through a state-building process.
Williams & Sakhong (2005) explain clearly that state-building is very different from nation-building, because in the building of a multi-national state, there can be many nation-building processes taking place simultaneously for the different member nations. They assert rightly that in contrast to state-building, nation-building excludes from its process other ethnic groups, cultures, religions, and everything related to multiculturalism and diversity. Going further, they point out that by accepting only one homogeneous set of cultural and religious values as its political values, the very notion of nation-building can produce only a nation-state made by a homogeneous people or nation that claims pre-state unity based on culture, history or religion. Thus, a nation-state made by a nation through the nation-building process cannot accommodate other cultures, religions and ethnic groups.
In the light of these facts any of our leaders that insists that his or her job description is nation-building may have the mind of a Federalist, but the heart of a racist.
May the soul of Engr. Augustine Ikebude Okolo FAutoEI FNSE rest in the bossom of our Maker. Amen.
Thanks very much for listening.
HR Engr. Otis Anyaeji KtSGG FAEng FNSE FAutoEI
Obi Onowu II n’Okija (Traditional Head of Ubahu-Okija)
Chairman/CEO O.T Otis Engineering Ltd
Founding Chairman Automotive & Locomotive Engineers’ Institute
HR Engr. Otis Anyaeji KtSGG FAEng FNSE FAutoEI
Obi Onowu II n’Okija (Traditional Head of Ubahu-Okija)
Chairman/CEO O.T Otis Engineering Ltd
Founding Chairman Automotive & Locomotive Engineers’ Institute
ENGINEERING POLICY, LEGISLATIONS, PLANS & PROGRAMMES IN NIGERIA’s
AUTOMOTIVE INDUSTRY.