kakakibuy: Can anyone confirm if this is what the New Policy really implies:

In the event that Govt goes ahead with the new tariffs, how will it affect you? Let's take a look at this scenario. If we assume that at current rates, you need 220,000 Naira to clear a Toyota Camry, whose cost is 986,000 Naira (Total final Cost)

When the 70% increase kicks in, our agent at the port explained that this means there will be a 70% increase in the 220k thus bringing clearing cost to 374,000 Naira and Total final cost to 1,140,000 Million Naira. An increase of 154,000 Naira!!

If this analysis is true, then it is not as bad as it seems after-all.

ban car imports.....and hes buying jet @2 per year.
na edumare go punish them o

This new import duties are quick frankly inane, insane and yet another slap in the face of the masses.

Here's what a sane Government would have done.

1. REDUCE the import duties! Yes, I said it! Reduce it! Thousands die yearly from road traffic accidents every year in Nigeria from driving old, unsafe vehicles. Older vehicles plying our roads are not fuel efficient and release a massive amount of pollution in our environment. Encourage the masses to buy newer, more fuel efficient vehicles with improved safety features (Airbags, ABS etc)

2. Stop these senseless waivers given to the big car importers. They never pass it on to the consumer.

3. Give any company that decides to set up an assembly plant in Nigeria waivers and tax breaks to make the climate more conducive for business.


What the Government has done is just plain moronic, and a clear indicator that the people in the FEC are evil minded. There will be no company assembling cars that Nigerians would like before 2016, at the earliest. Why punish Nigerians for nothing? Why not wait until companies are on ground first?

the Government loves to point to Innoson motors as an example, but Innoson makes only ONE consumer model of vehicle, and that's an SUV that doesn't come cheap at all. What if a taxpaying Nigerian wants to buy a Sedan? Is Innoson making these available in 2014 or 2015?

[size=24pt]By far the biggest, most odious slap in our faces is that While the FG postures and makes noise about locally made cars, the Presidential fleet and the vehicles in the Senate and Ministerial pool are composed of Prados, Range Rovers, Jeeps and other Luxury cars. I have never seen a picture of GEJ riding in an Innoson Jeep![/size]

This really, really sucks.

ShodekConnect: Nigeria need importation of Used and New Cars. Instead of the ban, Nigeria Government should have given the New Car Manufacturers subsidy, Tax Credit, and other ways to encourage them and help facilitate a close to fair ground. The New Car manufacturers can offer better Warranty, Support Services, and Government can encourage Bank to be more flexible with Auto Loans, Vehicle Tracking system, and many more ways for Customers to consider their product. Also, please make a good looking and durable Car Please.

Nigeria needs importation of cars?
lol.
You must be high on crack.
You are just a black man that only care about his own stomach.

I go talk mine o, am a Staunch GEJ supporter but I no support this ban and I don tell them o but every law can still be reversed if not favourable.

As for those N1.5m toys I won't even buy them for 700k though the ban on importation of cars is a good Move but we aint ripe for it yet, so many Nigerians can't afford what these car dealers will be mentioning as prices now and oh expect more smuggling through the porous borders.

Here's Innoson's portfolio.
Carefully note that there's no vehicle in that array that will cost less than 2+ million naira.

Also note that there's no sedan there...and neither GEJ or his ministers have ever been pictured in any of these vehicles


[size=18pt]
So tell me...

1) There's no possibility of any of the big automakers assembling and selling cars in Nigeria before 2016/17

2) The only car assembly factory in Nigeria does not make consumer vehicles, has no immediate plans to do so and cannot realistically make cars in the volume that can meet the need of one state in Nigeria, talk less of the whole nation.


Why the flying frag is this tariff hike taking place in Q1 2014?![/size]

gboss4sure: I go talk mine o, am a Staunch GEJ supporter but I no support this ban and I don tell them o but every law can still be reversed if not favourable.

As for those N1.5m toys I won't even buy them for 700k though the ban on importation of cars is a good Move but we aint ripe for it yet, so many Nigerians can't afford what these car dealers will be mentioning as prices now and oh expect more smuggling through the porous borders.

A country of 170million people is not ripe for this policy?
Don't worry,by the time ghana start exporting cars to Nigeria,i'm sure you will be ripe by then.

kakakibuy: Can anyone confirm if this is what the New Policy really implies:

In the event that Govt goes ahead with the new tariffs, how will it affect you? Let's take a look at this scenario. If we assume that at current rates, you need 220,000 Naira to clear a Toyota Camry, whose cost is 986,000 Naira (Total final Cost)

When the 70% increase kicks in, our agent at the port explained that this means there will be a [b]70% increase in the 220k thus bringing clearing cost to 374,000 Naira and Total final cost to 1,140,000 Million Naira. An increase of 154,000 Naira!![/b]

Its a 50% increase not 70%, initially it was 20% (10% tariff and 10% duty) but now 70% (35% tariff and 35% duty)

solomon111: Nigeria needs importation of cars?
lol.
You must be high on crack.
You are just a black man that only care about his own stomach.

Lol. The irony of your contribution in bold font. Supporting a senseless, unpopular policy because of the crumbs you're being given and you dare accuse someone of 'caring about his own stomach'

Btw, Nigeria is not the only country carrying out this policy.
Kenya,morrocco and Egypt have already began this same policy.
And these are countries with less than a quarter of Nigeria's manufacturing potential.

texazzpete:

Lol. The irony of your contribution in bold font. Supporting a senseless, unpopular policy because of the crumbs you're being given and you dare accuse someone of 'caring about his own stomach'

Shut up you morøn.
How's importation of cars beneficial to a country of 170million people with over 60million youths unemployed?

kakakibuy: Can anyone confirm if this is what the New Policy really implies:

In the event that Govt goes ahead with the new tariffs, how will it affect you? Let's take a look at this scenario. If we assume that at current rates, you need 220,000 Naira to clear a Toyota Camry, whose cost is 986,000 Naira (Total final Cost)

When the 70% increase kicks in, our agent at the port explained that this means there will be a 70% increase in the 220k thus bringing clearing cost to 374,000 Naira and Total final cost to 1,140,000 Million Naira. An increase of 154,000 Naira!!

You have it all wrong. They are saying that you will have to pay 70 PERCENT of the Customs estimated value of the vehicle in duties and levy. Taking your scenario, lets say that customs calculated your "tiny light" camry to be valued at N500k. Under the old regime of 20%, import duty is N100K and the rest of the N220K you paid for the clearing is associated charges and profit for the clearing agent. Under this new policy you will have to pay 70% of the N500K as duty and levy alone before you add other costs. That agent does not know what he's telling you. It is not 70 percent increase on original cost of clearing it is 70 percent duty and levy on estimated value of vehicle. It is the worst kind of tax increase, simply confiscatory.

mayo47:

Its a 50% increase not 70%, initially it was 20% (10% tariff and 10% duty) but now 70% (35% tariff and 35% duty)

Wrong. It is a 250% increase. You go from 20% to 70%!!

solomon111: Shut up you morøn.
How's importation of cars beneficial to a country of 170million people with over 60million youths unemployed?

It is EXTREMELY BENEFICIAL. Will the people trek?!

Pray tell me, if we aren't manufacturing cars in Nigeria and we do not import, how do we transport ourselves in Nigeria? Brooms?

We have zero comparative advantage in production of cars. The country is simply pauperising itself. Its going to destroy the livelihood of hundreds of thousand. there will be far more losers than gainers. NOI is not making economic sense .SMH

Am really surprised that a lot of Nigerians can't differentiate between markets. Second hand markets and Brand New Markets are to mutually exclusive markets based solely on purchasing power. Those who buy new cars will always buy new cars and those who buy fairly used cars will always (at least until their purchasing power increases) buy fairly used cars. You CAN'T force people to buy new cars by simply "banning" importation of fairly used cars, without providing the necessary facilities (note that Nigeria has double digit lending rates as opposed to single digit interest rates and flexible payment options obtainable in developed countries, millions of people live on less than $1 a day, total dearth of infrastructure etc). The same companies will leave Nigeria after a few years because our economy doesn't support their business and the customer base will still remain unchanged i.e. corporate customers which include banks, oil companies etc. Same way as i care less about the price of a ferrari( it could move from 65 million to a 100 million) why this may bother a few wealthy people, i care less because it's not affordable for me.

texazzpete:

It is EXTREMELY BENEFICIAL. Will the people trek?!

Pray tell me, if we aren't manufacturing cars in Nigeria and we do not import, how do we transport ourselves in Nigeria? Brooms?

The manufacturing companies have already made commitment to come.
Nissan and toyota will begin manufacturing in Nigeria this year.
But then i can assure you that if we abandon this policy due to pessimism or the temporary discomfort we may encounter in the course of this policy,we will be losing much in the long run.
I won't be surprised if in the nearest future we start importing cars from kenya and morroco just like we are currently importing from southafrica.

Gentlemen I want to encourage you to have an intelligent discussion (even while you disagree) without getting personal and getting involved in name calling. When we do that the focus shifts from the content of the discussion which in this case is this new policy.
Are there any lawyers on this forum that can clarify if it is even constitutional for the president and the minister pass and implement a policy like this? Shouldn't this process have gone through the two chambers of congress?

I C it now

ikenga67:

You have it all wrong. They are saying that you will have to pay 70 PERCENT of the Customs estimated value of the vehicle in duties and levy. Taking your scenario, lets say that customs calculated your "tiny light" camry to be valued at N500k. Under the old regime of 20%, import duty is N100K and the rest of the N220K you paid for the clearing is associated charges and profit for the clearing agent. Under this new policy you will have to pay 70% of the N500K as duty and levy alone before you add other costs. That agent does not know what he's telling you. It is not 70 percent increase on original cost of clearing it is 70 percent duty and levy on estimated value of vehicle. It is the worst kind of tax increase, simply confiscatory.

Thanks alot for the clarification

solomon111: The manufacturing companies have already made commitment to come.
Nissan and toyota will begin manufacturing in Nigeria this year.
But then i can assure you that if we abandon this policy due to pessimism or the temporary discomfort we may encounter in the course of this policy,we will be losing much in the long run.
I won't be surprised if in the nearest future we start importing cars from kenya and morroco just like we are currently importing from southafrica.

No, you simpleton, nobody's asking you to ABANDON the policy. We're saying it makes more sense to DEFER it until manufacturing starts.

If you REALLY think Nissan and Toyota will start manufacturing cars in Nigeria in 2014 or even 2015, you're more daft than I imagined

Please, tell me how an increase in import levies on cars in January 2014 benefits Toyota or Nissan in 2015 or 2016? Tell me how it makes it more lucrative to open a plant in Nigeria in 2016.

Also, why are you smuggling in Toyota in this discussion? The President claimed only Nissan (of which I have serious doubts!) and now you're lumping in Toyota? Why not Honda?

solomon111: The manufacturing companies have already made commitment to come.
Nissan and toyota will begin manufacturing in Nigeria this year.
But then i can assure you that if we abandon this policy due to pessimism or the temporary discomfort we may encounter in the course of this policy,we will be losing much in the long run.
I won't be surprised if in the nearest future we start importing cars from kenya and morroco just like we are currently importing from southafrica.

How do u know that?? don tell me u making comment based on what been on social media or nigeria newspapers, even if they do how many people can afford those cars??

FG should have placed ban on imported vehicle instead of increasing the tarrif.
I believe this automotive policy will creat alot for jobs for Nigerians

I would have expected the federal government to perfect the following before bringing about this policy.

1. Attain 70% level of necessary infrastructural development, i mean provide electricity and other amenities needed by the coming manufacturers so that the cost of doing business becomes cheap.

2. Secondly, Provide cheap funding for car acquisition. In developed countries car finance is another booming industry, a friend of mine in the USA recently Bought the 2013 Toyota highlander with only 1% down payment. He will spread the balance over 5 years, under such circumstances who wont be able to afford a brand new vehicle.

3. The government needs to prove that it can be trusted. The speed at which stallion got his import waivers shows the policy is skewed to favour some dealers. I heard other major dealers are sourcing for finance and may get a long extension before this policy affects them.

Of what use is the increment in the price of a product if the consumers don't have the necessary purchasing power?

Abariwiseman: FG should have placed ban on imported vehicle instead of increasing the tarrif.
I believe this automotive policy will creat alot for jobs for Nigerians

A ban is a horrible idea, bans ruins economies. I believe Buhari banned a lot of importation, nobody remembers his rule fondly. My only worry is that this has to go hand in hand with electricity, these factories that the FG wants to spring up are going to need electricity to supply them o.

Una just dey talk wetin dey una mouth without proPer reasoning, just dey blow grammar anyhow, and for those who think its a good move to ban car importation ar as senseless as a mad man. Ok dat ur big grammar brain no tell u to atleast imagine how inferior and inefficient naija made car go be?? And for those wey dey back the idea up simply cos they'll definitely reap from it via they ar associated with one arm of the government or the other, na God go punish una. Cos this absurd move by GEJ is just as unnecessary as okonjo her self. Read the sign right ; IT IS NOT GOING TO HELP NIGERIA OR NIGERIANS IN ANY WAY, ONLY THE GOVERNMENT OFFICIALS WHO ARE STEALING OUR MONEY TO PAY SUCH PRICE TO BRING IN THE CARS OF THEIR CHOICE. God dey watch una, I keep on saying it, what we need is a revolution in nigeria, hoha. Mey these greedy politicians go exile for some time joor

This policy is just a poster child for why governemnt needs to show maximum restraint when intervening in a sector of the economy that the market with minimal guidance could take care of. The same minister that is pushing this policy would not even think of anything remotely close when he worked for Goldman Sachs or he would be fired summarily. Now he has a sacred trust as a public official in Nigeria and he elects to play god in a most secretive and destructive way.
Lets examine some of the arguments they claim as making this policy neccessary:
1. The $3b market.- The so-called automative policy claims that there is a $3b market for used and new cars in Nigeria and naturally extends the reasoning to say that the economy will be saved that much if we start manufacturing all cars in Nigeria. The question is, do they have any data showing how much of this claimed $3b is extracted from the Nigerian economy and how much of that market share is from Nigerians in diaspora using the importation of used cars to repatriate some of their earnings to Nigeria? Are they assuming that if they make sending FBU cars no longer attractive that these group of Nigerians will have no options but to just send the dollars direct to Nigeria and spend it on new cars assembled in Nigeria? In any any event what makes them think that a $3b market is enough for global auto giants to ignore the myriad problems associated with doing business in Nigeria and hurry to set up shop here?
2. The claim that new cars will sell for between N1.2M - N1.6M . - I think this figure is fraudulent at best and was just pulled from thin air to bamboozle the public. I dont know about Chinese and Indian brand vehicles but anyone that thinks that Toyota or Honda for example will take the reputational, brand and legal risks and put their names on a sub $7k car needs to have his head examined.
3. Used cars are not new cars - In their rush to sell their defective policy, these guys want us to believe that cars are just like say, DVD players. Used and new are just about the same. This is a fallacy. The world over, there is a huge market for used cars. This is because cars are durable products and a lot of buyers are just content to buy them cheaper after they have been used for more than 5 years still expecting to get some years of quality use out of them. By destroying the used car market so they can promote their utopian "everyone gets a brand new car" sham these people are going to inflict a lot of pains on a lot of the populace.

meine:
I would have expected the federal government to perfect the following before bringing about this policy.

1. Attain 70% level of necessary infrastructural development, i mean provide electricity and other amenities needed by the coming manufacturers so that the cost of doing business becomes cheap.

2. Secondly, Provide cheap funding for car acquisition. In developed countries car finance is another booming industry, a friend of mine in the USA recently Bought the 2013 Toyota highlander with only 1% down payment. He will spread the balance over 5 years, under such circumstances who wont be able to afford a brand new vehicle.

3. The government needs to prove that it can be trusted. The speed at which stallion got his import waivers shows the policy is skewed to favour some dealers. I heard other major dealers are sourcing for finance and may get a long extension before this policy affects them.

Of what use is the increment in the price of a product if the consumers don't have the necessary purchasing power?

You are so on point. When this policy was first announced, my reaction to it was that it was a good policy in theory but a bad one in practice. The importation of fairly used cars does not affect the manufacturing of cars in Nigeria because those who buy fairly used cars do so because they can't afford the price of a brand new car.

The starting price of a brand new 2014 Toyota Camry is $22, 235. Assembling that in Nigeria will remove say $5k dollars which would bring the price down to about $17k. That is still above the the reach of the common man.

The second problem is that of financing because even in countries where these cars are produced, 70% of the people who buy them do so with loans that are not available in Nigeria.

For those advocating for this policy do you understand what it takes to operate an automobile manufacturing plant?
1. Do you realize you need the guarantee of 24hr electricity?
2. Do you realize they will require certain security guarantees?
3. Do you realize a proposal has to be made to the board of the company for approval? That can take years of study to produce facts and numbers to validate the investment.
4. When the president said Nissan is coming to setup a plant did he
a. Give any specifics for location,
b. Date first cars will be available for purchase,
c. Is there a local content requirement by the Nigerian government that guarantees X amount of jobs
5. Or are Nigerians supposed to just believe him because HE said so?

BTW the answer to all the questions in #4 is no, no and no because there is more than likely no immediate plan or commitment buy any foreign manufacturers to set up an assembly plant in Nigeria; if there was Nissan would be advertising their new partnership with the Nigerian government as well.

Ok