The Director-General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, has announced that Nigeria’s automobile testing centres in Lagos, Enugu, and Zaria should be up and running this year.
The DG, who revealed that the Federal Government is going all-out in its industrial revolution plans, made this disclosure while speaking at a news interview with the News Agency of Nigeria (NAN) yesterday in Abuja.
Aliyu, in his statement, noted that the testing facilities in Lagos, Enugu, and Zaria, which are currently at the concluding stage, will not only provide technical support services to key players in the automotive sub-sector, but also ensure global standard compliance in the automotive industry.
He stressed that the facility would help in vetting spare parts or components brought to, or made in Nigeria, adding that it would help to ensure the minimum global standard, otherwise it will be deemed illegal and would not be sold in the Nigerian market.
What they are saying
The NADDC boss, who spoke extensively during the news interview with NAN, made the following disclosures while speaking about the status of automotive testing facilities:
“We have finished the construction of automotive testing facilities in Lagos, Enugu, and Zaria and should be up and running this year.
“Any spare part or component that is brought or made in Nigeria must meet minimum global standard otherwise it will be deemed illegal and we won’t allow it to be sold in the Nigeria market.
“All these are steps the Federal Government is taking to ensure that the necessary environment is created in Nigeria for investors.”
What you should know
- According to information contained on the NADDC website, for locally made vehicles to be competitive, it is essential to note that the quality of the vehicles assembled in Nigeria must meet international standards.
- In a bid to foster the comprehensive development of the automotive industry in the long run and make Nigeria a regional powerhouse in the industry, NADDC under the NAIDP has made clear provisions to address both infrastructural and human capacity needs.
- Those provisions include the establishment of automotive test centres. The civil works for the council’s automotive test laboratories have reached 90% completion and approval for the purchase of the equipment has been given by the FEC.
- The test facilities, when completed, will test vehicle emission, safety components/parts, materials (Metal, Plastic, and Rubber) and undertake full vehicle evaluation.
- Also, the strategic targeting of international OEMs into Nigeria’s auto industry will enhance overall product quality and standards.
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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