Rolls out indigenous vehicle brand by July

The Federal Government’s 10-year automotive development project, aimed at turning Africa into vehicle-manufacturing hub by 2050, yesterday received a boost with a $150 million investment.

The development coming from an indigenous investor, Globe Motors will roll out first set of vehicles, including a Nigerian brand, expected to be called Globe, along with two other brands, Higer and Hyundai before the end of July, this year.

Announcing the plan in Lagos, Chairman of the company, William Anumudu, said the project would provide at least 3,500 direct and produce about 40 thousand commercial and passenger vehicles yearly when fully completed.

Anumudu disclosed that the organisation is in talk with key dealers across the continent to export made-in-Nigeria vehicles to other African countries, adding that it would particularly take advantage of the Common External Tariff (CET) of the Economic Community Of West African States (ECOWAS).

The automaker said the assembly plant, located at the Lekki Corridor in Lagos has started assemblage activities from a Semi-Knocked-Down (SKD) level on a 10 hectares of land and would soon progress to build vehicles from complete knock down parts.

“In the initial stage of our assemblage, we will roll out 6, 000 vehicles yearly and expand to 40, 000 when the project is fully completed. We will also provide 3,500 jobs, expandable to 10, 000 as a result of multiplier effect.
“Also, we are discussing vehicle dealerships along the West Africa corridor to expand our network and export vehicles from Nigeria to other Africa countries.”

Stating that the company was satisfied with the level of support received from the government, the Chairman said local banks as well as the Real Sector Support Fund of the Federal Government made available through the Centre Bank of Nigeria (CBN) supported the project.

Anumudu noted that recent government policies, particularly the planned flexible exchange rate of CBN, government’s efforts against corruption and the increase in the price of oil have brought ‘worst days’ to end in the country’s economy.

“We don’t have alternative. This is a serious policy and as patriotic citizens we have keyed into it to bring desired growth   to the economy of the country”, he added.