Should the Auto Policy be scrapped?

Dr. Zebulon Ikokide (President, Nigerian Institute of Freight Forwarding)

I have been speaking on duty reduction on vehicles for the past two years now, but no one is listening. Now the Government is realizing what they are losing by placing a higher duty on vehicles. We have advised at various fora that new vehicles should carry less duty while older ones carry high duty to discourage the importation of used vehicles. No one has been listening, now Government seems to have woken up from their sleep

 

Wale Odu (Talod Ocean air Limited)

The Automobile Policy has always been a fraud to Nigerians, the government makes things too expensive for ordinary people, to buy a vehicle today has become just too expensive. My own opinion of the policy is for government to scrap it. I pray the government will have listening ears. Can they account for all the money they have collected? No. So l am of the view that it should be scrapped

 

Eugene Nweke (Former President of NAGAFF)

It is an elite policy meant to fan the financial threshold of the so-called "Big Boys".We protested and declared it dead on arrival, but the “Big Boys” had their way and we kept faith to our professional position on the policy.The totality of the beneficiaries to this policy to date, are yet to collectively assemble up to 1.5 million vehicles from the commencement of the policy to date, in contrast to the number of fairly-used imported vehicles within the same period.

Government should restructure and evolve a sustainable automobile policy to  replace the present policy.

 Francis Omotosho (Maritime Expert)

I think the automobile policy needs total overhauling because nothing good seems to have come out of the agenda. I just believe the Automotive Council of Nigeria does not mean well for our great country. We need new formula and total revamping of their modus operandi. What we need now is a sustainable and clear blue print for the progressive development of our automobile industry.

 

Ayokunle Suleiman (Spokesman, ANLCA at PTML Chapter)

The policy should be scrapped, if the Auto Policy has added any value to our economy, let the Nigerian Automotive Council show us how the policy has added to our Gross Domestic Growth as a country, they are collecting the 35% on vehicles, but the money ends up in some people’s pockets in a way that we cannot explain, so, of what benefit and importance is the policy by taking from Peter to rob Paul. The policy is all about minus, there is no plus, I think the policy needs to be scrapped.

 Nichodemus Odollo (Trustee, Shippers Association Lagos State)

That policy has become a fraud, the formulators of the policy have good intentions, but the implementation is a fraud, the money that they are charging the importers of vehicles for the automobile industry is a fraud, where is the automobile industry that would be developed from that levy? We cannot see anything, even the new generation companies that supervised our assembly plants like VON, they are to be assembling vehicles, but which have they assembled? They are all importing full vehicles, so the policy is of no use.

However, I would not advocate that the policy should be scrapped because this would amount to taking three steps backwards, implementation is what we have to enforce, people that have genuine intention to build assembly plants should be allowed to come and invest.

 

Muda Yusuf (DG, LCCI)

I think the policy needs a review because it is not sustainable, government should revisit it and reduce the duty both on new vehicle and used vehicles, the duty should be reduced, if we do that, at least we would see a reduction in smuggling, improvement in customs revenue and more jobs created in the maritime sector. The review will also improve the business of the concessionaires at the ports because a lot will invest on the RORO ports. People at the RORO ports are losing a lot of money because the ports are underutilized because of the smuggling, the cost of transportation will also come back. Many of those vehicles are too expensive.

I don’t think the automobile policy should be scrapped, rather we need the auto policy to be promoted and by extension to have the automotive industry promoted and developed in Nigeria. We believe that the recommendation of the CGC for a reduction in the tariff chargeable on vehicles imported into the country is a step in the right direction.

 

Engineer Mansur Ahmed (President, MAN)

There should be a continuous review of the policy so that we would make sure that our policy are helping the industry and not undermining it. What we need is continuous and effective review of the policy and such review should come in consultation with stakeholders. If you want to review a policy on automobile industry, you should consult those who are already in the sector, those who are producing. Otherwise you will make policy that will undermine the sector.

 

Metche Nnadiekwe (President, United Berger Motor Dealers)

If the policy is not doing what it is supposed to do, it should be scrapped, but if it is performing, the government should leave it. They should check  why the policy was formulated , if it is doing what it should do, they should carry on with it if not, it should be scrapped. 

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