A sizeable chunk of the accumulated proceeds from the National Automotive Council (NAC) levy is in the coffers of notable automobile assembly plants, Shipping Position Daily investigations have revealed.
The NAC levy, a ‘c.i.f’ value on all automotive imports into Nigeria took effect from November 1994 and was stopped by Act of the National Assembly in May 2007.
Shipping Position Daily confirmed last week that, proceeds from the NAC levy is now a total portfolio of about NI7Billion.
A sizeable chunk of the accumulated proceeds from the National Automotive Council (NAC) levy is in the coffers of notable automobile assembly plants, Shipping Position Daily investigations have revealed.
The NAC levy, a ‘c.i.f’ value on all automotive imports into Nigeria took effect from November 1994 and was stopped by Act of the National Assembly in May 2007.
Shipping Position Daily confirmed last week that, proceeds from the NAC levy is now a total portfolio of about NI7Billion.
The levy is meant to be used to encourage local vehicle assembly plants in Nigeria.
Our sources confirmed that about N10 billion of the total sum is risk asset applied to nearly all assembly plants including Innoson Motors which alone received over N1billion, Peugeot Automobile Nigeria reportedly got about N3.2 billion, while NTM in Kano and Styre in Bauchi received over N600 Million each from NAC.
Shipping Position Daily confirmed that loan applications of VON Nigeria, Dana Motors and many component parts manufacturers are presently being processed.
The fund is said to be in the custody of Bank of Industry whixh has been disbursing it to auto assembly plants for years.
“The list of all the beneficiaries are with the Bank of Industry and NAC, I also know that, PAN’s indebtedness was being handled by Assets Management Company of Nigeria (AMCON), because PAN has challenges paying back”, our source hinted last week.
“The collection was placed in an account in CBN till 2004 when NAC application to use the funds for the development of the industry finally received Presidential approval.”
The approval was for the accumulated sum which was about N4billion at the time, to be transferred to Bank of Industry under a Fund Management Agreement. This meant that NAC was to process application for projects in the industry but to send Technical reports to BOI who will then do credit appraisal and apply funds as appropriate, taking full liability for repayment. NAC was also to meet its budgetary requirement from the fund as approved by the National Assembly”, he added.
But, defending the NAC levy’s application, our source added that: “This fund helped to transform the entire motorcycle assembly operations in Nigeria. Today we don't have junk second hand imported motorcycles on our streets and it is the same fund that is being positioned to intervene as equity in the proposed Automotive Credit Purchase scheme and building of quality test laboratories for which civil work has reached 35% on the average.”
Discussion about this post