Reps seek bailout for automotive industry

In a bid to avert total collapse of the automotive industry, the House of Representatives Thursday called for measures that will provide financial and bailout assistance for the sector.

To this end the Green Chamber has set up an ad-hoc committee to interact with relevant stakeholders in the sector with a view to address the problems faced by the industry.

The committee is also to investigate the inability of the industry to access foreign exchange from the Central Bank of Nigeria.

The resolution was sequel to the passage of a motion sponsored by Saheed Akinade-Fijabi on the need for financial and bailout assistance for automobile industry in Nigeria,

The lawmaker while arguing the motion noted that industrial growth contributes to a nation’s development in terms of increased foreign earnings, job creation and achieving other macro-economic objectives.

According to him, most developed countries “depend on industrial development to revolutionize their economic powers through manufacturing of goods for local consumption and exportation of same to other countries as a booster to their foreign trade for earnings”.

He said economic recession is not peculiar to Nigeria, adding developed countries at one time or the other witnessed economic recession but helped their indigenous automobile to survive the recession.

His words: “The US government considering the importance of this sector came to the rescue of their indigenous automobile industries like GM and Chrysler through provision of bailout and other incentive, including government patronage.

“Nigeria had a breakthrough into automobile manufacturing industries with the commissioning of Innoson motors, being her first indigenous vehicle manufacturing company in year 2010 to cut down the country’s dependence on importation of vehicle.”

The lawmaker further said, “Investigation revealed that Innoson motors, known for importation of basic motor components, including engines, from abroad and assemble them locally, is shutting down business due to foreign exchange issues borne out of economic recession.

“If this company is allowed to shut down, while government folds its arms, it will have negative effect on our economy in the area of job loss, loss of local and foreign revenue.”

While supporting the motion, a member, Hassan Sale this is need to support local industries.

“Even if we cannot give the bailout, we should support and encourage them. We must make effort to support indigenous companies”.

When the Deputy Speaker, Yussuff Lasun called for a vote on the motion it was supported by many members.

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