The controversy trailing implementations of Nigeria’s automotive policy assumed a new dimension on Monday with the outright ban on importation of vehicles through the land borders.
Indeed, the policy, unveiled in 2013 by the administration of former President Goodluck Jonathan’s administration now has more issues to contend with such as dwindling state of Nigeria’s foreign exchange earnings and ongoing economic recession, among others.
The development, among others, recently prompted the present administration to revisit the policy through a review panel comprising of representatives of strategic agencies.
Although details of the review has not been made public, stakeholders have warned that except the proposed reviews are ‘far reaching enough,’ Nigeria as a country, will continue to lose revenue from vehicle imports to neighbouring countries such as Republic of Benin and Togo. An economist, Mr Matthew R. Otoide, in a chat with www.citybusinessnews.com on Monday said: “Let’s be realistic. Can the management of Nigeria Customs Service enforce this ban? Today, despite the ban on rice through land borders, several trucks of smuggled rice enter this country on a daily basis”.
Already, the technical committee on the review headed by the Director General of National Automotive Design and Development Council (NADDC), Aminu Jalal, an engineer, has investigated and “cleared grey areas in the implementation of the policy”.
Though tariff was not considered for review by the committee, some stakeholders in the maritime sector are putting pressure on the Federal Government to review downward tariff structure.
www.citybusinessnews.com gathered that lowering the tariff will indicate policy somersault. “If lower, the investors will retreat home and rely on higher home country export incentive to override our tariff and our industry crushed.
“The tariff remain as it is in NAIDP (Nigeria Auto Industry Development Plan), the discussion is on how to remove ambiguity likely to encourage abuse.”
