The House of Representatives
Committee on Industry has endorsed the new automotive policy of the Federal
Government, which seeks to increase the tariff on imported cars.
This is coming as the Minister of
Industry, Trade and Investment, Mr. Olusegun Aganga, said the potential for the
automobile industry plan was to save as much as N550bn.
The Chairman, House Committee on
Industry, Mr. Mohammed Onawo, said the implementation of the policy would
attract new investments to the sector, protect local automotive manufacturers
and create employment.
Onawo, said this in a statement he
issued on Thursday in Abuja by the Federal Ministry of Industry, Trade and
Investment, said increasing the tariff on imported cars would encourage the
businesses of local manufacturers.
“The House Committee on
Industry is very insistent on the fact that anybody who is going to import a
complete car is going to pay a higher tariff than somebody who is going to
manufacture here because that is the only way that you will be able to protect
who is going to create employment here,” he was quoted as saying.
Onawo, who was accompanied by 12
other members of the committee on an oversight visit to the ministry, said he
was pleased to hear about the new measures.
He added, “Of particular interest to
me is how to use tariff to protect local manufacturers. One of the major
challenges facing those that are manufacturing cars in Nigeria is the tariff
structure.
“If somebody who is importing a
complete car is paying less than somebody who is manufacturing, then you are
not encouraging the person who is manufacturing. With the new measures being
put in place by the ministry, I am sure it will protect those investors who are
willing to come to Nigeria and invest by assembling or manufacturing vehicles
here.”
In his response, Aganga said the
ministry would continue to partner stakeholders in the implementation of its
Industrial Revolution Plan.
He stated that the new automotive
policy would have a catalytic effect of fast-tracking industrialisation,
creating jobs and generating wealth for the country.
The minister said, “The new measures
to transform the automotive sector is part of our industrial revolution plan,
which is integrated, holistic and based on areas where we have comparative and
competitive advantages as a country.
“Likewise, the potential for
Nigeria’s automobile industry plan is to save as much as N550bn ($3.5bn)
through the reduction of imports. We also have the regional export potential
into the West and Central African market, coupled with the availability of a
large and trainable workforce.
“Recognising the strategic and
catalytic effects of the automotive industry in industrialisation, job creation
and wealth formation, among others, 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 the 1980s. Nigeria
started about the same time in the 1970s. These countries have, however,
developed well-advanced automotive industries now, in contrast to Nigeria.”
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In a country where minimum wage is N18k, I wonder how long it will take a civil servant to save money to buy a new car. A better way is more corruption!
ReplyDeleteLet us see that your new cars on ground first before increasing the tariffs on Tokunbo cars.
ReplyDeleteThese People are mad. They are so wicked for the common man to have a car of his own. One day even to rent a house will be from foreign investors. They don't know that all the money we spent will be shipted to abroad as we don't have the capacity of our own to manufacture? These people are fools.
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ReplyDeleteDon't mind the idiots it is clear they are short sighted how can you increase tariff of tokumbo cars just to attract foreighn investors,when things like cosmetics which we can produce locally is still being imported into this country without problems.honestly this people have nothing and will never have anything to offer Nigerians.Just because you can afford brand new cars with stolen money does not mean Nigeria is ripe for this kind of wicked and unpopuler policy
ReplyDeleteWicked nd stupid ppl wit their unpopular policy. Where is d electricity for d manufacturers. Which road sef person go d new cars. Nonsense ppl, they r not happy dt we r nt trekking. Dtz what they want.
ReplyDeleteYou have to addres d power sector first before any manufacturer can come to invest in Nigeria.we can not boast. Of 24 hours power supply unless you live in Aso rock.wake up you fools politician.
ReplyDeleteThis will only increase smuggling
ReplyDeleteWhat foolish & clueless leaders we have, leaving the fundamental issues chasing shadows! No one is talking about the security, power & road/transport challenges we are facing this nation! Their problem now is importation of used cars. I prefer to drive a 5year old Tokumbo car to a car manufactured brand new in Nigeria where money comes before peoples lives. Shame!
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