With the approval by the Akwa Ibom State House of Assembly, the Akwa Ibom State Government will take N4.7bn loan from Zenith Bank to finance an automobile assembly plant.
The facility, the Mimshac Digital Automobile Assembly Plant, will be located at the Ikot Ukap in Itu local government area of the state.
Governor Udom Emmanuel had earlier written to the State Assembly for approval to take the loan. The approval came on 20th January, 2022 during the plenary.
In granting the approval, the lawmakers reckoned the Car Assembling Plant will boost the economy of the state and create more jobs for Akwa Ibomites.
Based on to the request, the loan facility will aid the implementation of the Memorandum of Understanding (MoU) between the Akwa Ibom State Government and Mimshac Digital Ltd Automobile Plant for the sum of USD10,000,000 equivalent to N4.7 billion at the exchange rate of N470 per dollar.
Governor Emmanuel said the loan will help “finance the procurement of Semi Knocked Down and Complete Knocked Down (CKD) parts for the assembling of 85 stainless steel, 20-seater luxury buses.”
Luxury Buses are now a high demand in Nigeria, especially for government officials and corporate organisations who need to move development guests at the same time..
It is not immediately clear unsee what brand name the luxury buses will be named but experts say the idea, if fully implemented will see the state begin to manufacture cars in the near future.
The Governor explained that the amount will also facilitate the training of 20 persons recommended by the state government on the assemblage and manufacturing of vehicles in Israel.
The purpose of the training will be to transfer knowledge and ensure the sustainability of the car assembly plant.