As the July 1st deadline on the implementation of the automobile policy draws closer, reactions are still trailing the policy as automobile traders under the aegis of Amuwo Odofin Auto Dealers Association (AADA) have faulted the introduction of the new auto policy by the federal government, saying the policy is premature; even as the group has maintained that the country needs between five to six years to be ripe for the policy.
As the July 1st deadline on the implementation of the automobile policy draws closer, reactions are still trailing the policy as automobile traders under the aegis of Amuwo Odofin Auto Dealers Association (AADA) have faulted the introduction of the new auto policy by the federal government, saying the policy is premature; even as the group has maintained that the country needs between five to six years to be ripe for the policy.
Recall that in a bit to revive the Nigerian automobile industry, President Jonathan on January 1, 2014 approved a new auto policy which seeks to discourage importation of fairly-used vehicles into the country by increasing its duty and levy to 35% respectively.
This means that importers of tokunbo vehicles will have to pay 70% tariff on the total cost of, a development which many Nigerians fear will make prices of tokunbo vehicles soar beyond their reach if full implementation of the new auto policy begins on July 1st as proposed by government.
Speaking on a maritime audience-participatory programme, the Public Relations Officer of the association, Mr Kelechi Achilike stated that inadequate infrastructure, epileptic power supply and poor road networks are factors that government needs to address before putting the policy in place.
Responding to questions, the spokesman disclosed that although government consulted his association during the process of formulating the policy, it failed to consider their perspective which is that Nigeria is not yet ripe for such a policy.
"Yes, government engaged us during the time of policy formulation; but it failed to take into cognisance our submission”
"And our perspective has been that it is premature to introduce this kind of policy in Nigeria going by our level of infrastructural development"
"We are not against the policy especially when you look at the jobs it promises to create and the investment that may come in, but we want government to take a holistic approach by fixing the electricity challenges first", he stated.
Continuing, he said, "without steady power supply, these local car manufacturing companies cannot mass-produce cars that will be affordable for average Nigerians".
Speaking further, he cited instances of how government banned the importation of tokunbo tyres just to encourage local manufacturers, but due to poor electricity, the tyre manufacturing companies left Nigeria for Ghana where they have stable power supply.
Achilike also explained that because infrastructural development in the country moves at a snail speed, it will take Nigeria five to six years to attain the needed technological and infrastructural level to produce affordable cars for the average Nigerian, even as he added that the steel and plastic industries including all other micro industries that produce other equipment necessary for car manufacturing have to be fully developed also.
In his contribution, Mr Christian Chukwu, said the new auto policy will only make the anti-smuggling customs officers grow fat because they will be bought over by car importers who will now take to smuggling.
He added that the policy will eventually favour Nigeria's neighbouring countries because vehicles meant for Nigeria will be diverted to near-by countries for clearance, and this will lead to loss of revenue by Nigerian government.
Also contributing, Mr Kola Gbenga stated that the new auto policy will deny the average Nigerian the opportunity of owning cars because the made-in-Nigeria cars will not be affordable by low income earners.
He urged government to either postpone the take –off of the policy or consider a downward review of the tariff it has placed on imported fairly used vehicles.
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