Twenty-four hours after the new automotive development plan was approved by the Federal Executive Council, the Federal Government on Thursday said a new tariff on the importation of cars would be announced soon.
The move will make imported cars more expensive thus, promoting the purchase of locally manufactured vehicles.
The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, confirmed the development during a chat with journalists in Abuja.
Aganga said the old tariff had been reviewed upwards, adding that the new tariff had already been approved by the Federal Government.
This, he added, was part of measures to develop the Nigerian automotive industry.
“The importation of Tokunbo vehicles will not be a major threat to the automotive development plan. The tariff for the importation of cars has been reviewed upward and will be announced soon,” he said.
Aganga also said the ministry had commenced, with immediate effect, the implementation of the Automotive Industrial Policy Development Plan.
The measures, which were approved by the Federal Executive Council on Wednesday, according to the minister, will position Nigeria in the league of auto-producing countries.
He said with the new measures, the automotive industry would create significant, good quality employment and a wide range of technologically advanced manufacturing opportunities.
He said, “In many countries around the world, the automotive industry plays both strategic and catalytic roles in economic development, particularly in employment creation and wealth generation.
“With our current population and economy, our potential vehicle market is about one million vehicles a year. This is more than sufficient to support an automotive industry.”
While stating that the manufacture of vehicles would enable Nigeria to acquire the technologies of mass production and quality control, Aganga said arrangements were being made to manufacture new cars that would be sold for between N1.2m and N1.5m.
He said, “Recognising the strategic effects of the automotive industry in industrialisation, emerging economies like Brazil, China, Malaysia, India, Iran, Indonesia, Thailand and South Africa took deliberate steps to develop their automotive industry between the 1960s and 1980s.
“Nigeria started about the same time in the 1970s. These countries have, however, developed well advanced automotive industries now in contrast to Nigeria. The Nigerian auto development plan will promote investments in the assembly of inexpensive cars in the country at prices, which Nigerians can afford, and will gradually substitute the large and growing car imports coming into the country.”
The Director-General, National Automotive Council, Mr. Aminu Jalal, said many international automotive manufacturers in particular, Toyota, Nissan, Renault and General Motors, had indicated interest to invest in Nigeria following the evolution of the automotive development plan.
He said, “Nissan, Toyota and others are now conducting a feasibility study on vehicle assembly in Nigeria.
“At full capacity, the Nigerian automotive industry has the potential to create 70,000 skilled and semi-skilled jobs along with 210,000 indirect jobs in the Small and Medium-scale Enterprises sector that will supply the assembly plants.”
Jalal said 490,000 other jobs would also be created in the raw materials supply industries.
He added that importers could still clear imported vehicles at the old rates until February 28, 2014, provided “they can prove that they had opened a letter of credit for the vehicles before October 3, 2013. Click to signup for FREE news updates, latest information and hottest gists everyday
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Dis is a boom to Benin republic again. D cars will find their way to Naija. Does dis government think at all? Is d ban or upward review on tokunbo cars it's priority? Clueless leaders.
ReplyDeleteU right bro. Clueless leaders
DeleteIt is a good idea if the federal govt can implement it effectively..at least it will create employment at the long run..but it is a gradual process,not that they should put an end to importation of the used cars like that..
ReplyDeleteThat a good one we hope it works.
ReplyDeleteGood one as long as all government officials including the president will be banned from using any imported vehicles either new or used as private and official vehicles.
ReplyDeleteAll nay story. MtheeeeeeeeEeew.
ReplyDeleteIt's such a pity this government is just so blind,We keep on making the Economy of Benin Republic grow on a steady climb,While ours surfer.Who told our stupid and dumb government that our car dealers wont look for a better alternative,which of curse is Benin Republic.Shame!
ReplyDeleteSome ppl will never support good idea. How do u tink oda counries started. Let us learn to give our leaders benefit of doubt for once...Apex
ReplyDeleteAnother demonstration of Jonathan's ignorance. Where's the power and other infrastructures to support auto assembly plants? They just want to force Nigerians to buy archaic designs by their political crony owners of PAN. You should have the manufacturers on ground before increasing tarrifs on on imported new cars not even used cars. This guys are really confused.
ReplyDeleteThank God, Benin republic is alive again.
ReplyDeleteWhen FFK said our president has no balls some pple dey vex. Sony asked nigerian govt to guaranteed them 2000 mega watts for their plant if they want them to establish a factory here, naija govt yet to replied since now they want to start another one again. I dey laf o. Why put the cat before the horse all the time? Is the car factory going to run on diesel? Ds was how we started this space sattelite program the other time. And how come it is easier to conceive the idea to build sattelite yet a less complex issue of power generation is still unresolved after 12yrs of civilian rule? This govt people are just a bunch of BALLless JOKERS... Odun Tutu.
ReplyDeleteOdun Tutu you are absolutely right, The issue of high importation of Tokunbo cars is due to fact that Nigerians outside find it easy to send cars home since most of the countries they live in as their internal policy that restrict the amount of money that can be transfered to other country particularly developing nation if it is no ta grant and it is followed to a letter and concurrent devalue of Naira is another issue. Also these countries where Nigerians live taxes are usually high, keeping money in the bank will reveal their true financial statue. If Govt. is made of Good Heads they should not have Implemented what they say not immediately it should done when the Govt. feel the impact of the automobile factory on the country economic, but Govt will guarantee the power and other infrastructures to support auto assembly plants. Land should be made available for these by Govt and Memorandum of Understanding should explicit for the Govt and Host Community. this is clear Ignorance at expense Intelligence and monkey hired in the Banana plantation why The Great Black Country Nigeria. Abdulrahim K. Abdul
ReplyDelete