The Chattered Institute of Logistics and Transport (CILT) has explained why it will be difficult to stop importation of used vehicles into the country.
The Acting Executive Director of LCCI, Mr. Paul Ndibe who gave these explanations in a chat with Shipping Position Daily last week in Lagos, said that the country has not been able to meet increased demand of cars with local manufacturing of vehicles.
He faulted the proposal by the Nigerian Automotive Design and Development Council (NADDC) for a 100% tariff on imported used vehicles, saying that it will deprive people the opportunity to import what they like.
“Well the integral thing to look at here is the demand level; if the demand level for cars is still high and it is growing and we have not been able to support or assist the demand by having local production of cars, it might be difficult to stop importation of cars if there is a need because, by the imposition of this level of tariff, it will discourage car importation”
“But if so far, we have not been able to locally address our needs by matching our supply with our needs then it might not be necessary to impose as much as this (tariff) otherwise you will deprive people the opportunity to import and use the type of cars they want”
Ndibe however urged the federal government to come up with the decision on the type and brand of cars they want for the country.
“Secondly, Nigeria has not made the decision on the type and brand of cars they want for the country. Therefore, if the ones that are produced in the country fail to meet the expectations of the consumers and you impose 100% tariff hike on their choice of cars, of course you are helping them”
“The critical thing is that if there is no policy on the specific brands to be used in the country, there will be no need for this high tariff rate, otherwise you will discourage people from making decisions on the type of cars they want to use and when”, he stressed.