‘Local Investors Are Key To Attracting Foreign Investment’ – Dangote

 

The Chief Executive Officer of Dangote Group, Aliko Dangote, has called on governors in Northern Nigeria to do more in mobilizing local private sector investors in their states.

Dangote made the call at the Kaduna Economic and investment summit on Wednesday, where he stated that such a move can spur huge inflow of private capital, reduce insecurity, unemployment, and poverty.

“Northern Nigeria will continue to fall behind if the respective state government does not move to close the development gap. Closing these gaps requires huge multi-year investment and government will not be able to raise the capital required to fund this. Only the private sector can raise the capital required to fund the level of investment this country needs.

“Efforts should be more in terms of attracting local investors, there is no foreigner that will come and invest without seeing the local investors invest. So local investors are key to attracting foreign investments and we must pay attention to that.”

READ ALSO: We’ve Attracted Over $500m Investments In Kaduna, Says El-Rufai

According to the business mogul, the partnership to establish an automobile assembly plant between the Dangote group, Peugeot and the Kaduna State government would help grow the domestic automobile industry and SMEs will benefit from the supply chain.

“On our own part, we have already progressed to establish billions of naira automobile assembly plant in conjunction with Peugeot of France and the Kaduna State Government.

“It is in the hope that the state government will also incentivize the SMEs to take advantage of opportunities inherent in the supply chain. This is the only way we can grow and develop our domestic automobile industry and economy in general.

“Government must create a conducive environment that will trigger a huge inflow of private capital into attractive sectors of the economy. Private investments will create jobs and will ameliorate the twin challenges of unemployment and poverty,” he added.

Dangote tasked state governments to work hard by creating the necessary legal and regulatory framework, offer attractive sector-wide incentives, identify the sectors of the economy where their state has a comparative advantage and provide information and data to enable prospective investors to evaluate the opportunities in these sectors.

AMCON To Sell Peugeot To Dangote, Two States

Arik Air To Go To Court Over TakeoverThe Asset Management Company of Nigeria says it is close to selling Peugeot Automobile Nigeria Ltd to Africa’s richest man, Aliko Dangote, and two Nigerian states.

AMCON’s Chief Executive, Ahmed Kuru, told Reuters that all processes on the bids were completed about two months ago and all that is left is the approval of the Central Bank of Nigeria.

Dangote, in alliance with the states of Kaduna and Kebbi and the Bank of Industry, made a bid to acquire a majority stake in PAN last year after AMCON moved to sell off some of the assets it acquired in the wake of the banking crisis.

The automaker is worth over N15 billion.

Peugeot Automobile, a Nigerian vehicle assembly plant located in Kaduna State, has Psa Peugeot Citroen as its technical partner with a capacity to assemble 90,000 cars a year.

NLC VP Berates FG Over Reliance On Oil

The Vice President of Nigeria Labour Congress (NLC), Issa Aremu, has stressed the need for the Federal Government not to depend heavily on oil for its budgetary plans and revenue generation.

At a news conference in Kaduna to review the activities of the government for 2013, Aremu expressed sadness that the country still relies heavily on oil as the mainstay of the economy, 53 years after her independence.

He said that it was high time the country diversified into other sectors such as automobile, food and beverages in order to sustain the economy.

“The point I want to raise is that 53 years after independence, it is sad that we still rely on crude oil. The fundamental of our budget still rely on one source of revenue which is oil. I think I want to say next year the Federal Government should redouble its effort to make sure we add value through manufacturing sector. The only way to do so is for us to do as much as possible to revive the industries, not just the textiles but the automobile, food and beverages.

“There is a report that came out last week in a business newspaper that close to 130 companies have closed down in Nigeria. So, while our government is talking of direct foreign investment coming to Nigeria, we should make the point that the domestic investment is actually dying, and you cannot create jobs if there are no industries. In fact, for us to solve the problem of unemployment is for us to add value to our natural resources and raw materials and process them into manufactured products.

“This is where I think government has taken a bold decision on the new automotive policy which is to restrict the wholesale importation of imported second hand vehicles. We hope this will give an incentive for domestic assembly plants to return to business such as Peugeot, Volkswagen, ANAMCO in Anambra”, he said.

He called on the Federal Government to redouble its effort in its industrialisation policies, adding that the only way forward is for government to revive the industries that have closed down for years.