After postponing commencement date several times, there are strong indications that the Federal Government may further extend the July 1, 2015 date for the full implementation of the automotive policy for another six months to enable the various assembly plants to commence full operations.
This indication was given by the Director General, National Automotive Council (NAC); Alhaji Aminu Jalal on Friday during a working visit to the Nigeria Shippers' Council in Lagos.
After postponing commencement date several times, there are strong indications that the Federal Government may further extend the July 1, 2015 date for the full implementation of the automotive policy for another six months to enable the various assembly plants to commence full operations.
This indication was given by the Director General, National Automotive Council (NAC); Alhaji Aminu Jalal on Friday during a working visit to the Nigeria Shippers' Council in Lagos.
According to the director general, the minister of trade and investment; Dr Olusegun Aganga was granted another six months extension in order to allow investors to meet certain conditions.
Jalal reiterated that the Federal Government has no intention of increasing tariff on imported used vehicles, until the assembly plants are in full operation.
He also disclosed further that for importers who are importing vehicles into Nigeria for commercial purposes, such will attract 70% duty and levy at the commencement date.
The NAC boss also noted that the frequent outcry of various stakeholders is another factor the Federal Government considered in the first two shifts of the policy pointing out that people were allowed to import at the old rate.
He noted that, "the minister was given six months intervals to delay the commencement of the automotive policy until we meet certain conditions and that is why the full level is not charged on used vehicles "
"Government does not want to raise the duty on used vehicles before the assembly plants produce more vehicles and until the financial scheme is in place”, he told the Nigerian Shippers’ Council boss on Friday.
He disclosed that most investors in the automobile business currently record losses, while assembling vehicles and they can only make profit and after sales, adding that the vehicle financing scheme is important for the automotive policy to thrive in Nigeria.
The DG of NAC expressed optimism that once the vehicle financial scheme is in place, Nigerians will be able buy Nigeria-assembled vehicles, adding that it will only attract 10% interest in four years.
Jalal further explained that for the policy to record some level of successes, Nigerians must be able to buy new vehicles that are assembled in Nigeria.
Speaking further, Jalal said that the NAC is calling on financial institutions to enter into partnership for purpose of financing the vehicle acquisition scheme.
Earlier, Executive Secretary, Nigeria Shippers’ Council, Barrister Hassan Bello assured the NAC DG that the council will continue to collaborate to ensure that the auto policy succeeds.
Bello recalled that the Nigeria Shippers’ Council, NAC and other maritime stakeholders had met for the purpose of ensuring the success of the automobile policy.
He said that consultations with relevant stakeholders will make NAC to succeed in the quest to encourage local assembly of vehicles in Nigeria.
"I think the way NAC is going about the consultation is the best way for the auto policy to succeed because it makes people understand more of the policy", Bello stated.
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