texazzpete:

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:
Most of the cars manufactured in SA are sent to Nigeria.

solomon111: You are a morøn.
Nigeria is the largest market for imported cars in africa.
Most of the cars manufactured in SA are sent to Nigeria.
Nigeria is a huge market that no car manufacturer would take for granted.
What the FG is trying to do is to raise the tariffs as high as possible to make imported cars less economical to the locally manufactured ones.
Amd they 've also gone ahead to grant both old and new-incoming car manufacturers 50% tax breaks for the next 5 years.
And secondly,the reason why we currently have little car manufacturing is because drastic measures like this have not been taken.
The manufacturing companies see no reason to move to Nigeria,when they can always import unhindered.
And finally,if you think Nissan and toyota can't start manufacturing this year,then i can't help you.
You will need to deal with your pessimism by yourself.

adconline: Look at comparison Rice Mill vs Car Manufacturing. Rice mill is one of simplest technologies to be deployed while car manufacturing is complex.
Why give Vaswani's Stallion group a waiver to import over 20k units if the govt is serious about local content? Vaswani brothers that imported expired food products and had to fight NAFDAC?
Why does the govt reward their importer cronies like Stallion and Coscharis before they start making even brakes? Why can't the govt say for ever car made locally in Naija u get a 20% tariff waiver on 2 imported cars. What are these cronies offering the govt and Naija to get such juicy waivers?
NOI is an economist and does not have all the idea of how manufacturing works. It's like a Wall Street banker running Exonmobil or Caterpillar.
Just take a look at ur vehicle and tell me how many of the parts are made in Naija?

solomon111: You are a morøn.
Nigeria is the largest market for imported cars in africa.
Most of the cars manufactured in SA are sent to Nigeria.
Nigeria is a huge market that no car manufacturer would take for granted.
What the FG is trying to do is to raise the tariffs as high as possible to make imported cars less economical to the locally manufactured ones.
Amd they 've also gone ahead to grant both old and new-incoming car manufacturers 50% tax breaks for the next 5 years.
And secondly,the reason why we currently have little car manufacturing is because drastic measures like this have not been taken.
The manufacturing companies see no reason to move to Nigeria,when they can always import unhindered.
And finally,if you think Nissan and toyota can't start manufacturing this year,then i can't help you.
You will need to deal with your pessimism by yourself.

solomon111: You are a morøn.
Nigeria is the largest market for imported cars in africa.
Most of the cars manufactured in SA are sent to Nigeria.
Nigeria is a huge market that no car manufacturer would take for granted.
What the FG is trying to do is to raise the tariffs as high as possible to make imported cars less economical to the locally manufactured ones.
Amd they 've also gone ahead to grant both old and new-incoming car manufacturers 50% tax breaks for the next 5 years.
And secondly,the reason why we currently have little car manufacturing is because drastic measures like this have not been taken.
The manufacturing companies see no reason to move to Nigeria,when they can always import unhindered.
And finally,if you think Nissan and toyota can't start manufacturing this year,then i can't help you.
You will need to deal with your pessimism by yourself.

Riba_man: Let's face facts, no country ever grew by relying on others to provide all needs.
The automative policy of Nigeria is merely a paper based idea, to move it to the next level, FGN must put in place steps and ideas that will kick start things. You just don't wake up one morning and decide implement an automative policy, that has been gathering dust in one govt dept for aeons.
GEJ has the ideas, but there are times when he appears to shoot himself in the foot. Re this case:
Why the rush, knowing that the requisite groundwork has not been done?
Why is the Stallion group getting preferential treatment?
Why is not carrying the entire country along? Surely his ministers and praise-singers don't constitute any significant number viz-a-viz the population of Nigeria.
As always, with GEJ, a good policy but terrible implementation plans. ( by the way, do they actually employ good and certified Project Managers in the Presidency?)

ikenga67: All these people are doing is just trying to return us through the back
door to the dark days of import licensing. Soon you will see the well-connected at
Abuja making millions from obtaining these waivers and just selling them to the next
person.

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

Ochiske: The idea of nigeria producing nigerian made cars is definately a good one. But before proceeding, the govt should take note of some very important things! A tennant living in a rented house may have plans of building his own house but simply because such a person is planning to bulid a house doesn't mean he/she have to pack out of the place he/she is staying at the present!

1. The govt want the country to start producing her own cars- which is very good! but have they kept the necessary things in place? The federal Govt haven't given any visible proof that they are ready for this. We nigerians have not seen nor heard of any auto producing factory in this country. The govt struck a deal with Nissan motors but have Nissan motors built any factory for the production of cars?

2. Foreign cars undergo series of test before being soldout. Will made in nigeria cars also undergo such test? Remember Nigerians buy cars that are durable!

3. If the govt are really interested in Nigerian made cars, why don't the show us a prototype or start producing these cars in small units and test run them or distribute them to ministries for use so that we Nigerians can see that they are ready. Instead they keep on patronizing foreign made cars!

4. How many govt officials will be willing to buy these cars? How many ministries, heads of dept, permanent secretaries will use these cars as their official car? If yes why don't they start now?

5. Building an auto factory takes years! why is the govt in a rush? Why dont they start building factories now?! We all know how long it takes before the govt can complete a project in this country. The removal of subsidy on P.M.S is a good example of this; till date not even a single refinery has been constructed as promised!.

I think these are some of the vital things they should put into consideration before increasing tarriff on used cars.

mayo47:

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

mic foley: Very lively thread. I have my issues with this government but I must say that I really support this new policy though evidently, there are some flaws. One thing most people seem to ignore is that while the tariff on FBU's have been raised, the tariff on CKD's ie completely knocked down parts have been reduced to almost zero. This is sure to encourage assembly plants to spring up and Nissan is already making plans to revive the VON plant in Badagary. The increased tariff is also likely to open the market for Innosons who will increase his capacity and probably go into Sedan/Saloon production. Though I have not driven any of the Innosons models, I have seen the small bus, pick-ups and SUV's on several road trips and they certainly look cool. You would have to look at them really close to know they are not Japanese or European models.
Now, setting up a car assembly plant is capital intensive and to recover costs quickly, a significant number of cars will have to be produced and sold quickly. I believe this will spur the banks to partner with the auto companies to provide financing. Don't forget that assembling these cars in Nigeria will reduce the price of brand new cars significantly and create many direct and indirect jobs.
The other thing nobody has mentioned is the role of the steel industry. WEMCO STEEL rolling mill was recently commissioned in S/west Nigeria while Ajaokuta and perhaps Delta steel are being revived. These companies will have to increase capacity to supply steel required for car assembly thus creating more jobs and strengthening the economy.
As has been pointed out, electricity supply is crucial and I believe that with the privatization process we should get it right this year.
It is vital for government to support the local assembly plants esp Innosons. For example, Innosons pick -ups would make great patrol vans and should be procured in large numbers for the Nigerian Police.
If it is true that Coscharis got waivers or abused its insider knowledge, this could seriously undermine the whole policy. Our borders need to be seriously strengthened or else Cotonou will be the biggest beneficiary of this policy.
I personally think the likes of Coscharis and others like them having enjoyed the waiver regime cooked up this policy to make even more money, and got their associates in governement to force it down our collective throats.
It will not be the end of the world if we do not make cars in Nigeria. We need to stop using the governemnt to pick winners and losers in the Nigerian economy. That is wrong public policy and immoral
All in all, I think we should support this policy because in the long run we stand to gain massively. If we don't do this now, as someone said we could soon see ourselves importing cars from Ghana

sonnie10: Ask you self this question, if you are the CEO of one of these companies, would it make any business sense for the company; Toyota, Honda, Nissan etc to build a factory in Nigeria? Even with all the freebies by the Nigerian govt.

Fhemmmy:

In a nation where Quality assurance is not necessary, where they can build junk and sell well, where they could give some bribe and compromise safety of those vehicles . . . It will end up being a smart move for those companies.
Will it be to the advantage of Nigerian? That is yet to be seen

Fhemmmy:

In a nation where Quality assurance is not necessary, where they can build junk and sell well, where they could give some bribe and compromise safety of those vehicles . . . It will end up being a smart move for those companies.
Will it be to the advantage of Nigerian? That is yet to be seen

ikenga67:

You can trust me, they will not do that...the reputational and legal risk is just too much.
Take for example, I am a US citizen on a trip to Nigeria and I get seriously injured in a car accident involving one of those your poor quality Toyota or Nissan. Do you think I will pursue them in Nigeria? Of course not. Do you think I might have some colorable basis to sue them in the USA? You do not know US law if you do not believe I can. Trust me, those Auto giants are not going to do away with their minimum standards just so that they can make $7k cars in Nigeria.