Africa Automotive July-August issue 2022

Manufacturing
Steel industry revival
will boost Automotive
Manufacturing
The Executive Vice Chairman/
Chief Executive, National Agency
for Science and Engineering
Infrastructure (NASENI) Prof.
Mohammed Haruna said the revival of the
nation’s steel industry is a must for the
development of automotive manufacturing
in the country.
He said without fixing the steel industry,
the nation’s automotive aspiration would
not be realised. He said the Federal
Government should adopt Public-Private
Partnership (PPP) model to fund steel
complexes.
He said Nigeria should not own more than
40 per cent equity in such partnership.
Haruna, who made the submission in a
presentation to the steel council in Abuja,
said NASENI will invest in any venture,
targeted at producing iron and steel
products from Nigeria raw material, with
the private sector and the steel council.
He said the government should support
local production by levying a development
for tax on steel imported into Nigeria
He said the government should raise
fund or generate a fund for privatized
Ajaokuta Steel with incentives to
guarantee its completion. He added:
July-August issue l 2022
“In the past planning of 1958 and the
postindependence, it was only government
that has financial muscles to fund
steel projects. “Now private sector can
conveniently undertake such investment
to fund steel complexes but in PPP model.
Federal Government of Nigeria should not
own more than 40 per cent equity in such
partnership.
“Government should raise fund or generate
a fund for privatised Ajaokuta Steel with
incentives to guarantee its completion.
“Government should thereafter support
local production by levying a development
for tax on steel imported into Nigeria
during the resuscitation period to fund the
establishment of steel development fund
which is accessible to investors.”
“The new National Steel Council has to
resist the temptation of using foreign
consultants and the so-called development
partners who are here to corrupt the
officials and offers foreign travels as
free meals to ensure that the country
geopolitical interference and sectional
partisan politics.”
He assured the council that NASENI will
seek its board’s approval to invest in any
venture, targeted at producing iron and
steel products from Nigeria Raw Material,
with the private sector and the council
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16 Africa Automotive News l 2022