The Director-General of National Automotive Design and Development Council (NADDC), Jelani Aliyu, has revealed that the Federal Government in a bid to foster the domestic production of vehicles is set to establish Automotive Industrial Parks in Anambra, Osun and Kaduna State.
The DG of NADDC made this known while speaking during a news interview today in Abuja.
According to a news report by the News Agency of Nigeria (NAN), one of the automotive industrial parks will be sited in the home state of Nigeria’s first indigenous motor manufacturing firm (Innoson Motors) in Nnewi, Anambra, while the other two would be sited in Ede, Osun State and Kaduna.
What they are saying
Mr Jelani Aliyu who commented on the economic benefits Nigeria will tap from the parks said:
“We are building three automotive industrial parks that will be comprehensive facilities where the necessary infrastructure will be provided and investors can easily come in and play.
“As the Federal Government is promoting local production of vehicles, key to that is creating the necessary environment, and we have done that with the automotive policy.
“We are working on making it easier and more advantageous to produce vehicles locally because we believe the difference must be created between vehicles built elsewhere and those built in Nigeria.
“When you built a vehicle in Nigeria, you are giving our youths jobs, empowering Nigerians and creating better life.
“But when you bring in a fully built vehicle, you are taking resources outside Nigeria and that is not adding much value to us our economy.”
Why this matters
- The Automotive Industrial Parks will be comprehensive facilities where necessary infrastructure for vehicle assembly and manufacturing will be provided, this will provide investors with an enabling environment to operate in.
- It is important to note that this programme was part of the National Automotive Industry Development Plan (NAIDP) five-point comprehensive programme aimed at promoting local production of vehicles. Hence, the coming on stream of the industrial parks will make it more advantageous to produce vehicles locally.
- This move is expected to – create value across the manufacturing value chain; quicken the activities of the steel industry which has been inanimate for a while; also add both vigour and diversity to Nigeria’s industrial and manufacturing sector.
- We should know that park will help to open up employment opportunities for the youths directly and indirectly, with a key focus to addressing the nation’s socioeconomic issues which swim down to poverty.
Industrial index down by 0.72%, as shares of BUA Cement, Beta Glas, Cutix decline
NSE Industrial index declined by 0.72% to close at 1,922.02 index points.
The Nigerian Stock Exchange Industrial Index at the close of trading activities for the week ended 17th February 2021, depreciated by 0.72%, to close at 1,908.19 index points.
At the end of the seventh trading week, the Index shed 13.83 index points in total to close lower for the week at 1,908.19 index points, as shares of BUA Cement, Beta Glas, Cutix declined on NSE.
A preview of the performance of the index revealed that as of the close of trading activities on Friday 17th February 2021, the index stood at 1908.19 index points, from 1922.02 index points at the close of trade on Friday 12th February 2021.
What you should know
The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.
The index monitors the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.
The overall performance of the companies was relatively bearish as the index closed on a negative note with three losers and three gainers, while the other four companies closed flat.
BETAGLAS (-9.75%) led the loser’s chart for the week, while PORTPAINT (+14.44%) led the gainer’s chart.
- PORTPAINT up 14.44% to close at N3.25
- CAP up 5.56% to close N19.00
- WAPCO up 1.01% to close at N25.00
- BETAGLAS down 9.75% to close at N50.00
- CUTIX down by 5.70% to close at N2.15
- BUACEMENT down by 1.37% to close at N72.00
Nigeria’s manufacturing sector contracts by 2.75% in 2020
NBS report reveals that the real GDP of Nigeria’s Manufacturing Sector contracted by 2.75% in 2020.
The recent Gross Domestic Product (GDP) report released by the Nigerian Bureau of Statistics (NBS) has revealed that the real GDP of the manufacturing sector contracted by -2.75% in 2020.
This signals the end of a two-year run of real growth in the sector.
The contraction in the real GDP of the Manufacturing sector, leaves the sector in a vulnerable position, noting that the sector according to NBS computation grew by 0.77% in 2019 and 2.09% in 2018.
It is essential to understand that in nominal terms, without factoring in the change in prices in 2020, the Nominal GDP of the sector recorded a growth rate of 16.44% at the end of the year, compared to 34.73% in 2019.
- At the end of the fourth quarter of 2020: the manufacturing sector’s Real GDP contracted by –1.51% (year-on-year). This is lower than the corresponding quarter of 2019 and the preceding quarter by –2.75% points and –0.01% points respectively.
- The growth rate of the sector, on a quarter-on-quarter basis, stood at 5.60%.
- However, in nominal terms, the sector’s GDP growth at the end of the fourth quarter of 2020 was recorded at 24.60% (year-on-year), this is -1.69% points lower than 26.29% recorded in the corresponding period of 2019 but 11.06% points higher than the preceding quarter (13.54%).
- In nominal terms, quarter on quarter growth of the sector was recorded at 5.78%
- The Real contribution of the sector to the Nation’s GDP in the fourth quarter of 2020 was 8.60%, which is lower than the 8.74% recorded in the fourth quarter of 2019 and the 8.93% recorded in the third quarter of 2020.
- At the end of 2020, the annual contribution of the Manufacturing sector to Nigeria’s GDP stood at 8.99%.
What you should know
The Manufacturing sector is comprised of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood Products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic, Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
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