AUTO POLICY: NAC Allays Fear Over APC Election Promises On Imported Fairly-used Vehicles

The National Automotive Council (NAC) acknowledged last week that the recent statement in which the opposition All Progressives Congress (APC) said it will tinker with the controversial auto policy jolted many stakeholders in nation’s automobile industry.
In a direct reaction to the statement that was made by the vice presidential candidate of the APC at a political event in Akure, Ondo state that the party will reduce duty on imported vehicles, if voted into power, the director general of NAC, Aminu Jalal confirmed that the agency had received several calls from existing and potential investors who expressed worry about the likelihood of a policy somersault if the opposition party wins.
The Vice Presidential candidate of the APC; Prof. Yemi Osinbajo had told a meeting that, tariffs on imported vehicles would be reduced if the party is voted into power in the coming elections.
While addressing a town hall meeting of political stakeholders in Ondo State, Osinbajo had said: “We do not agree that there should be high tariffs on imported cars whether new or old ones because Nigeria is not producing cars for now.
“What we will do first is to fix power and encourage local production of cars. But before then we will reduce the high tariffs that Nigerians are paying to import vehicles into the country.”
Prof. Osinbajo argued that Nigerians should not find it difficult to purchase cars for their socio-economic activities and assured that the APC government would ensure lower tariffs when voted into power.
But, in the NAC statement, which was obtained by Shipping Position Daily, its director general assured investors not to panic, adding that, during circumstances like this, the council’s response “will continue to be based on the need to address the concerns of those who have reservations about the policy noting that there will be a milestone achievement in the ten year programme”.

Justifying the policy, Jalal added that funds have been spent on several mandatory programmes to support the implementation, stressing that the policy is aimed at improving the living standard of Nigerians by ensuring that the public drive new automobiles of global standards and create job employment.

Underscoring the need to curtail smuggling , the NAC boss further reiterated that ,“the second programme is to curtail smuggling. This is essential because, once levies are placed on imported FBU's smuggling will escalate and undermine the entire policy."

"The digital solution to this will be launched by May 2015 which will ensure that vehicles which duty is not fully paid will not be able to ply Nigeria road legally".

He also said that about 10 other companies are busy setting up assembly operations in Nigeria, adding that most of the automobile assembling plants are gradually revamping to meet the demand of the populace.