The Advertiser

How govts are killing local industries

in Business » Nigeria Economy

15:22 26.10.2011 | Comments: 0 | 831694957 | Write a comment

Author: Naija Advertiser


The Kaduna state government has expended over N200 million for the purchase of 34 Toyota Camry cars for the 34 members of the State House of Assembly representing the 23 local government areas of the state, investigations by the Peoples Daily have revealed.

The vehicles whose total was put at N238 million, are alleged to have been given to each member as loan.

Our reporter also gathered that an earlier sum of N8million had been granted to the members as loan soon after they were sworn-in.

Investigation also showed that members of the Assembly since inauguration have been battling the executive arm led by Mr. Patrick Yakowa, to demand one form of favour or the other.

The purported action of the state government is in flagrant disregard of the Local Content Act signed into law by President Goodluck Jonathan.

By this law, the Kaduna state government has been criticized for neglecting Peugeot Automobile Nigeria (PAN) within its domain, and in which organisation it controls a large share, to award contract for purchase of vehicles outside the country.

Besides the argument that Kaduna state government’s action is as a result of too much demands from the Assembly men, sources within government circles disclosed to our reporters that the executive arm is dispensing patronage to the legislators out of political expedience.

At this rate, it is being speculated that the relationship between the executive and the legislature in the state is mopping up resources that should be committed to infrastructural development.

Furthermore, the government’s action is seen a pay-back gesture to compensate some political investors who helped the governor win his seat. Sources also alleged that the government by-passed PAN to escape the prying eyes of the public and opposition political parties who will raise eyebrows and call for an audit.

According to economic analysts, the neglect of PAN by its principal shareholder in favour of a foreign company is a reflection of the fate of industrial development in the country at large. Other automobile companies such as Steyr, Fiat, National Truck Manufacturing Company, and the Anambra Motor Company, have since closed shop due to neglect, corruption and lack of patronage. It is the same fate bedeviling other manufacturing sectors particularly the textiles industries.

While the Kaduna state government is granting political patronage and reportedly serving as a guarantor for loans dispensed to legislators and other politicians, the citizens of the state are grappling with the absence of infrastructural development. There is a growing lack of employment and an increasing army of restive youth thrown out of jobs when companies like PAN lack the capacity to absorb and retain its skilled and unskilled manpower.

Only recently the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, (KADCCIMA) noted with dismay how government policies only further the economic development of other nations to the disadvantage of local industries.

President of KADCCIMA, Alhaji Umar had advised the Federal Government to ensure that the Local Content Act implementation was encouraged, against the backdrop that the National Assembly has a similar plan to import vehicles (not Peugeot) for the members to the tune of over N2billion.

“Our concern is that we have a vehicle manufacturing /assembly plant here and most especially Peugeot automobile plant in Kaduna that can render similar service. We believe in our opinion that industries like this have a lot of roles to play in our country.

“We want government and National Assembly to re-examine these issues by giving PAN patronage. By bringing these vehicles into our country, we are developing the economics of other country at the detriment of our own.

“If these vehicle were manufactured here, the tremendous value added will develop the economy of Nigeria, also employments to be generated in terms of Engineers, artisans and other labours would not be small and would be appreciated by all of us”.

The spokespersons of the executive and legislature in the state, Rueben Buhari, Governor Yakowa’s media aide, and Hon. Yakubu  Yusuf, House Chairman on Information respectively, refused to respond to the several phone calls and text messages put through up to the time of filing this report.

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