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No provision for made-in-Nigeria vehicles in budget - Ken Ukuoha


The President National Association of Nigerian Traders (NANTS), Ken Ukuoha said though the Federal Government had assured that Nigerians would begin to witness the result its automotive policy, the 2014 budget allocated to the Ministry of Industry Trade and Investment made no provision for the auto industry.


The federal budget for 2014 is N4.643trillion, while the total budget proposed for Industry, Trade and Investment sector and its departments and agencies is N15.059billion.


Out of the proposed sum only N2.21billion amounting to 14.67 per cent (19.8 per cent in 2013) for capital expenditure while the remaining balance of N12.85billion is for recurrent expenditure. In percentage terms, allocation to the sector constitutes 0.32 per cent.

Ukuaho disclosed this yesterday at the stakeholders’ consultation and the analysis of the proposed 2014 budget for the trade sector in Abuja, stating that the trade sector through import revenue is the largest revenue generator for the country.

He said: “The government assured Nigerians that very soon they should begin to witness the result of the Federal Government’s automotive policy as Nissan says it’s first made in Nigeria car will be rolled out April 2014, yet if you go through the ministry’s budget, there is no one single provision for automotive.

“Some MDAs such as Standard Organisation of Nigeria (SON) has N0.00 zero allocation to capital budget from N81.35million in 2013. Small and Medium Scale Enterprise (SMEDAN) and Nigeria Export Processing Zones Authority (NEPZA) had increasing capital budget between 2013 and 2014 proposals.
“Federal Produce Inspection was listed as an agency within the ministry but it had no personnel cost, meaning the agency is omitted perhaps due to rush or oversight.

“The percentage allocation to capital expenditure dwindled from 19.8 per cent in 2013 to 14.67 per cent in the 2014 proposed budget. The recurrent increased from 81.2 per cent in 2013 to 85.33 per cent in proposed 2014 sector budget. The trend manifest at different MDA levels within the sector.

“The ministry of Industry Trade and Investment had capital budget reduced from N1.6billion to N619million. Onne Oil and Gas Free Zones Authority reduced from capital budget N34.82million in 2013 to N21million in 2014.”

Ukuoha said the finding will be documented and published and further presented to be discussed with relevant committees of the National Assembly.

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