Auto policy undergoes review, capacity enhanced – NADDC
The National Automotive Design and Development Council (NADDC) have said that it has started reviewing the country’s automotive policy with the stakeholders in the auto industry in other to eliminate the hindrances currently bedevilling the sector.
Director, Policy and Planning of NADDC, Mr. Luqman Mamuda, who disclosed this in a telephone conversation with Business247 News Online in Lagos, noted that when the policy was made in 2014, many companies welcomed it because of the tariff differentials between the Completely Knocked down (CKD), Semi Knocked down (SKD), and fully built vehicles.
He stated, fully built vehicles attract higher levies and duties. The policy made it clear that zero percent duty is charged on CKD and 10 percent for SKD and for commercial vehicles for 10 percent instead of 35 percent, but for the completely built vehicles, revenue of 35 percent and duty of 35percent, hence, making it a total of 70 percent charges on the import of fully built vehicles.
“We have to encourage these Original Equipment Manufacturers (OEMs) to come with their capacity. If we create the right environment for them, they will come with their capacity to produce here and if this happens, we can export from here to earn foreign exchange. We are calling on the OEMs to use Nigeria as a hub for the whole West Africa, but we must be ready and focus so that we do not lose the opportunity.”
“The policy was sufficient for Nigerian investors and it meant well for the OEMs abroad, with this, most of the auto assembling plants in the country started retooling to produce but a lot of bureaucracies somewhere along the line and administrative hiccup and customs administration set in, which made it difficult for them to have a sufficient turn around in terms of number of vehicles assembled.”
He pointed out that Nigeria currently has the capacity to assemble 384,000 vehicles per annum, but only 25,000 vehicles was assembled by April 2016, stressing that the reason was purely administrative hiccup.
According to him, “The issue of forex has set in and most of them are not able to generate forex for procurement of their CKD and their required SKD, especially those that are 100 percent funded by the local entrepreneurs. This affected the local entrepreneurs but most of the OEMs that invested on their own still have the money to bring in the Knock down vehicle, but because of the procedures, a lot of them prefer that the status-quo remains.
“So for this reason, the government directed that we deliberate with all the parties involved to remove these limitations. That is why we have embarked on review of the exercise which is focusing especially on the customs excise, focusing on how to bring credit facilities, which will help Nigerians to afford vehicles in piece meal bases.
“Before 2014, the country’s capacity was only assembling less than 2000 vehicles but in 2015, we were able to assemble over 20,000 and in this year, no doubt, there is an upsurge in the volume produced because the more Original Equipment Manufacturers (OEMs) have already indicated interest in investing in the country.
“Right now, a Chinese firm is building a plant in Abia State, which will essentially focus on commercial vehicle, such as light vehicles that can be used to get produce from the farms to the markets. Heavy duty vehicle for haulage would also be manufactured by this company which will enhance the already existing capacity.”
He added that Youtong has recently signed an agreement with Anambra Auto Manufacturing Company (ANAMCO), Enugu, to start manufacturing their buses and trucks in Nigeria, maintaining that it will not only boost the production capacity but will also help in diversifying and repositioning the economy.
Adebowale Afolabi liked this on Facebook.
Peace Bassey liked this on Facebook.
9/22/2016 at 18:15:32 Greetings from danglekatangul
9/24/2016 In my view, business247ng.com does a good job of dealing with issues of this kind! While frequently intentionally contentious, the posts are in the main thoughtful and challenging.
9/27/2016 In my estimation, business247ng.com does a excellent job of dealing with subject matter of this kind. While sometimes intentionally controversial, the posts are in the main well-written and thought-provoking.
Thanks for another magnificent post. The place else may just anyone get that type of info in such an ideal means of writing? I’ve a presentation subsequent week, and I am on the look for such info.
I more or less share your opinion on this topic and look forward to new posts and comments here at business247ng.com. Thanks!
Great looking web site. Think you did a whole lot of your very ownyour very own coding
Jurgen Klinsmann http://www.0980.cc/space-uid-117110.html
Great looking web site. Presume you did a whole lot of your ownyour very own coding
Henrik Larsson http://www.themefreaks.com/modules.php?name=Your_Account&op=userinfo&username=ShaynaVerc
I like browsing your website. Thanks a lot!
Park Ji http://dlpfy.hrc782.cnaaa4.com/comment/html/index.php?page=1&id=61632
Like this site– very easy to navigate and lots to consider!
I’m gratified with the way that business247ng.com handles this sort of topic! Usually on point, sometimes contentious, without fail well-researched and thought-provoking.
Love the website– extremely easy to navigate and lots to think about!
10/2/2016 Like the website– extremely informative and lots to consider!
Wow that was unusual. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say great blog!
In my estimation, business247ng.com does a excellent job of covering issues of this sort. Even if frequently intentionally polemic, the posts are generally thoughtful and stimulating.
Thanks for the noteworthy website you’ve created at business247ng.com. Your enthusiastic take on the subject is certainly inspiring. Thanks again!
What i do not understood is in truth how you are no longer actually a lot more neatly-appreciated than you might be now. You’re very intelligent. You understand thus significantly in terms of this subject, made me in my opinion consider it from numerous numerous angles. Its like women and men are not involved except it’s something to accomplish with Woman gaga! Your individual stuffs excellent. Always take care of it up!
10/12/2016 business247ng.com does it again! Quite a thoughtful site and a good post. Keep up the good work!
I’m impressed, I need to say. Actually rarely do I encounter a blog that’s each educative and entertaining, and let me let you know, you will have hit the nail on the head. Your idea is outstanding; the problem is one thing that not enough individuals are talking intelligently about. I am very comfortable that I stumbled throughout this in my search for one thing relating to this.
In my opinion, business247ng.com does a excellent job of dealing with topics of this type. While ofttimes deliberately controversial, the posts are generally well researched and stimulating.
What i do not understood is actually how you’re not actually much more well-liked than you may be right now. You’re so intelligent. You realize therefore considerably relating to this subject, made me personally consider it from so many varied angles. Its like women and men aren’t fascinated unless it’s one thing to do with Lady gaga! Your own stuffs excellent. Always maintain it up!
1. Thanks for the great post keep up the amazing work.
Thanks for the great post keep up the amazing work.
I’m gratified with the way that business247ng.com handles this kind of subject matter! Usually on point, sometimes controversial, consistently well-written and also challenging.
your style of writting is very refreshing
hope to learn more from your blog soon
Hope to see more of your work soon
10/25/2016 Love business247ng.com– very easy to navigate and tons of stuff to explore!
An impressive share, I just given this onto a colleague who was doing slightly analysis on this. And he in actual fact bought me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to discuss this, I feel strongly about it and love studying extra on this topic. If possible, as you turn out to be experience, would you thoughts updating your weblog with more particulars? It is extremely helpful for me. Massive thumb up for this blog publish!