Car manufacturers in the country under the aegis of the Nigerian Automotive Manufactures Association (NAMA) has threatened to withdraw their investment from Nigeria and release their employees into the labour market, if government reneges on the implementation of the auto policy.
Car manufacturers in the country under the aegis of the Nigerian Automotive Manufactures Association (NAMA) has threatened to withdraw their investment from Nigeria and release their employees into the labour market, if government reneges on the implementation of the auto policy.
In a statement to the government through the minister of industry, trade and investment; Olusegun Aganga, and which was sighted by Auto Port Weekly last week, the group maintained already there is a glut in the market because of what it called failure to implement the policy fully.
The NAMA said in the letter that, "manufacturers whose operations are being undermined will be forced to slow down their rate of investment , and eventually close down releasing their employees into the employment market"
"The Nigerian Automotive Manufacturer Association currently responsible for 100% of automotive assembly in Nigeria is hereby humbly appealing to the federal government not to help derail the National Automotive Policy by admitting non manufacturers into the scheme, just for the purpose of avoiding the level."
The NAMA alleged that some powerful individuals in the industry are trying to kill the national auto policy, pointing out that there will be an immediate reversal of Nigeria’s status as the preferred investment destination in Africa.
The car manufacturers added that an attempt to smuggle importers into the concession regime in the auto policy will be against the spirit of the policy approval by the Federal Executive Council and will represent a policy reversal in the eyes of global auto maker.
"Auto makers made business decisions based on Mr. President’s assurances that this is a stable investment environment", it said.
NAMA in the statement added that, " we wishes to make it categorically clear that, this move is unwarranted and is unacceptable because there is a glut in the market arising from failure to implement the tariff changes contained in the auto policy"
"The local assembly plants have the capacity to meet the demand of the market for new passenger cars and commercial vehicles".
According to the statement by NAMA, the combined capacity of local assembly plants for new cars is three times the annual average new cars imports, thus the combined capacity for commercial vehicles is five times the annual average of new commercial vehicle importation.
"The current low level of production continues to be dictated by the failure of the federal government to fully diligently implement the tariff regime approved in the national auto policy, as assembly plants cannot continue to invest in production when the tariff environment is so uncertain", the statement reads.
NAMA also appealed to the federal government to stand firm in implementing the policy and enable Nigeria achieve her deserved position as the region's automotive industry leader.
" As we speak, these importers are putting intense pressure on the federal government to compromise the auto policy by admitting them into the category of those who enjoy the levy free concession, in the process, creating humongous problems for the Nigeria Customs Service and depriving the country of badly needed internal generated revenue'' they added.
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