Auto plants chiefs urge release of N10b development fund
By Moses Ebosele
AS controversy continues to trail the alleged part diversion of the N10 billion raised to kick-start the nation's moribund automobile assembly plants, stakeholders in the sector have appealed to the relevant agencies to facilitate the prompt disbursement of the remaining sum as part of measures to energise the sector.
The National Automotive Council(NAC) had in August announced that the fund would be made available to firms which scaled through verification modalities put in place by it in conjunction with the Bank of Industry last month.
But more than one month after the scheduled date, some of the auto plants who applied for the fund disclosed at the weekend that they were yet to receive the fund intended to energise facilities and operations in the sector.
Managing Director of Enugu-based Anambra Motor Manufacturing Company (ANAMMCO), Mr Rudi Kornmayer, in an interactive session with journalists last Thursday in Lagos said ANAMMCO would use the money it requested to finance part of its city bus project, adding that if its request of N1.2 billion was granted, it would stimulate its operations and by extension the economy.
Speaking further, Kornmayer said ANAMMCO had, since the inception of the fund in 1993, contributed about N500 million
"We are not asking for free money, we are not asking for grant, we are asking for a soft loan," he said.
Public Relations Manager of Peugeot Automobile Nigeria(PAN), Baba Yahaha Mohammed, confirmed in an interview with The Guardian recently that the firm applied to benefit from the fund but declined to disclose how much it requested for.
About 46 other firms in the sub-sector are believed to have applied for the total sum, which currently stands at about N4.5 billion.
Executive Secretary of NAC, Tony Igwe, recently disclosed that about N4 billion currently with the Bank of Industry would be made available to genuine manufacturers in the sector after relevant verification exercise must have been concluded by NAC in collaboration with the bank.
Information made available to The Guardian revealed that a sum of N10,787,775,574.11 had accrued to NAC account from inception to July 31, 2003.
A breakdown of the figure disbursed showed that the National Fertiliser Company of Nigeria Limited (NAFCON) received N3.725 billion while Steyr Nigeria got N2.361 billion from the facility.
Further details of the disbursement revealed that in March 2000, NAFCON received N725 million, N1 billion in October and another N2 billion in November of the same year.
The House of Representatives recently commenced a full-scale investigation surrounding the disbursement of the fund.
Kornmayer also disclosed that a meeting of stakeholders was scheduled to hold on Wednesday in Abuja.
Expected at the meeting are the Bank of Industry and NAC, among other.
In an interview with The Guardian yesterday, Executive Secretary, Nigeria Automotive Manufacturers Association(NAMA), Arthur Madueke, said he was not aware of the Wednesday meeting.
The NAC scribe disclosed that firms which obtained forms for the loan were demanding between N20 million and N1.2 billion.
He added that there were processes which must be followed before the fund would be disbursed to interested parties.
Igwe explained that the processes include visitation, assessment, recommendation and approval, adding that " until these processes are completed, money will not be disbursed."
It was also not clear as at press time if NAC has concluded it zonal visits where the new directive by government was expected to be made public.
From about six in the mid 1970s, only three of the auto plants currently operate at about two per cent of their installed capacities.
The result is that the entire nation, including government agencies, rely heavily on imported vehicles.`
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