** Nigeria spends N550 billion annually on car importation, as new policy seeks to phase out ‘Tokunbo’

The executive will also propose a legislation to back up the policy.

Nigeria currently spends about N550 billion on the importation of cars into the country annually, the Minister of Information, Labaran Maku, and the Minister of Trade and Investment, Olusegun Aganga, disclosed on Wednesday.

The ministers, who briefed journalists after the meeting of the Executive Council of the Federation, FEC, said the Council has now approved a new Automotive Industrial Policy Development Plan for the development of the Nigerian automotive industry.

Mr. Aganga had brought a memo seeking Council’s approval of policy measures to transform the Nigerian automotive industry and attract investments into the sector.

The minister disclosed that as at 2012, Nigeria spent a total of N550 billion ($3.4billion) and N660 billion ($4.2 billion) in 2010 on the importation of cars. He added that this showed that car importation takes the biggest share of the country’s foreign reserves, followed by machinery.

While explaining the policy to journalists, Mr. Aganga said the policy was drawn over a period of nine months with the input of the National Automotive Council (NAC). He added that foreign car manufacturing giants like Toyota and Nissan are expected to start announcing their specific investments in Nigeria.

Mr. Aganga said the success of the policy will also mean a gradual phase out of fairly used (Tokunbo) cars imported into Nigeria and create a minimum of 700,000 jobs for Nigerians.

He said the pitfalls of similar policies in the past such as the non-implementation of policies, lack of infrastructure, and inappropriate tariff regime were considered and adequately addressed in the new policy. He said the Federal Road Safety Corps and local vehicle assembly plants/manufacturers were involved in the formulating the policy.

He also disclosed that Nigeria and Bangladesh were the only top countries in the world that did not have a successful automotive policy.

The minister outlined the points of the new policy to include the establishment of three automotive clusters in Lagos/Ogun, Kaduna/Kano, and Anambra/Enugu states to share resources and reduce cost of investments; the development and revival of the petrochemical and metal/steel sectors; and the tyre manufacturing industry to support the automotive sector.

He added that new tariff regimes will be adequately set to discourage the importation of cars and encourage local manufacture while government continues to take the lead in patronage of locally made vehicles. He added that banks will be encouraged to operate vehicle purchase schemes to enable Nigerians easily purchase cars.

The Council also approved the directive that all government vehicles be purchased from local assembly plants unless they are of specialized nature and NAC has certified that they cannot be produced in Nigeria. The council’s decision is to be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy

http://premiumtimesng.com/news/145878-nigeria-spends-n550-billion-annually-car-importation-new-policy-seeks-phase-tokunbo.html

Good for naija .imagine naija without boko haram.

The rice self-sufficiency policy, sugar master plan,etc are up and running. Now a new Automotive Industrial Policy Development Plan has been added to the list.

When the likes of Toyota, Nissan,etc roll out their investment plans in ANY part of the country, the APC e-warriors and children of anger should not forget to link the ACTION (policy) to the REACTION.

Sincere 9gerian: The rice self-sufficiency policy, sugar master plan,etc are up and running. Now a new Automotive Industrial Policy Development Plan has been added to the list.

When the likes of Toyota, Nissan,etc roll out their investment plans in ANY part of the country, the APC e-warriors and children of anger should not forget to link the ACTION (policy) to the REACTION.

I think this is a very laudable and lofty streak. The FG must be commended for the giant reformations it's making in almost all sectors of the economy in one fell swoop. Even with the lowest elb of citizens' morale support the FG has managed to continue to position the economic POWER STEERING of the nation towards the lane of prosperity.

But let me quickly add that you shouldn't let the sometimes irrascible comments and incindiary remarks of some of the folks here on NL make you begin to sound like you're on a paranoid level with them. Most times these your PHANTOM (e-)enemies or opponents say what they say just to get at you. Most of them are just having their fun. Dont play to their game. Hope I didn't hurt you.

God Bless Nigeria and Nigerians

^^ You call them "phantom" enemies? My friend, the bandits who malign and call the president of the federal republic all sorts derogatory names on this forum are not "phantom" enemies. The bandits who attack me and other Sincere 9gerians on this forum are not "phantom" enemies. They'r real enemies. At every opportunity, I will return fire for fire. I will not spare them.

1MCN:
I think this is a very laudable and lofty streak. The FG must be commended for the giant reformations it's making in almost all sectors of the economy in one fell swoop. Even with the lowest elb of citizens' morale support the FG has managed to continue to position the economic POWER STEERING of the nation towards the lane of prosperity.
God Bless Nigeria and Nigerians

No it's not a laudable idea. Why do people buy cars (some people have 6)?

Even in the western world where people buy brand new cars, at least 70% are bought on credit. Does Nigeria have a working credit system? No

Simple idea, start with building a credible transportation system so that people won't have to own cars

GEJ means well for this country,

Imagine if BH memebers cued into the mega Rice project ,
And Militant stop siphoning crude oil and key into the cocoa agenda ,
GEJ continues to Labour Amid insults to transform this Nation from a consuming Nation to a self reliant one .
Honda just said they are coming and I know Toyota won't just dash them the market
Without a fight that. Means plant for plant which means more jobs for Nigerians

The least we can do for this president is to pray for him

GOD BLESS NIGERIA

Another + from the staple of Jonathan's good governance! Imagine what this country would looked like in the year 2018 if half of what we spend on cars and machines importations can be retrieved locally through this initiative! Truly, Jonathan is not clueless as widely acclaimed by those parasitic e-rats here

This kind of policy can only be seen when you have right thinking economic team. GEJ so far has proven to be a born genius and a selfless leader. Without Jonathan the country would have been doomed.God blessed us with GEJ.GEJ till 2019 is the only solution to our problems. Fresh Air for all,Fresh Water for life

GEJ for President. ASO Rock is not vacant.

unleash the dragon!!! Who unleashed all of you at the same time. Jonathan E warriors

No wonder they don't want him to go second term...with gej all things dat seems inposible by our past leader seem bosible..thank God...just only 2years in de office" we can now bost of stable electricity""new airport)ten lane road with all our old rail and new ones working)etc...just 2yrs ..while those looter west 51 yrs only what they did is to store the fuel they will use for 50 yrs. Some people are saying dat gej is glueless"yea they are only want gej not to give up his good work""

A-ZeD:

No it's not a laudable idea. Why do people buy cars (some people have 6)?

Even in the western world where people buy brand new cars, at least 70% are bought on credit. Does Nigeria have a working credit system? No

Simple idea, start with building a credible transportation system so that people won't have to own cars

I agree with you on the aspect of credit system. A credit system is actually part of the new policy. The report by Premium Times is incomplete.

It is not the business of FG to manage traffic. It is the responsibility of state govt. I think the mistake people make is to analyse every action of the FG in isolation. This automative policy is not the only thing FG is doing in the transport sector. Roads are being built, old railways are being rehabilitated, new modern railways are being built, rivers are being dredged, river ports are being built,etc,etc. All of those will provide alternatives to people.

But alternative or not, the FACT on ground now is that according to the above report, we spend a whopping N500 billion annually on importation of vehicles. With a good and well implemented automative industrial policy, that N500 billion or a substantial part of it will be spent locally, providing jobs for our people and saving huge foreign or exchange.

A-ZeD:

No it's not a laudable idea. Why do people buy cars (some people have 6)?

Even in the western world where people buy brand new cars, at least 70% are bought on credit. Does Nigeria have a working credit system? No

Simple idea, start with building a credible transportation system so that people won't have to own cars

I totally agree with you.

This policy is rubbish and it will collapse like a house of cards, it is amazing how a country with the gigantic amount of BASIC problems it faces. It's government rather than focusing exclusively on them, is jumping from one fantasy policy to another. That is the problem in this country. The leadership has no focus, they hop from pillar to post and low information nigerians cheer them on.

Can the jonathan government put a number on the amount of people it has lifted out of poverty between 2009-2013, how many job has it created? How many more nigerians have access to safe and affordable water,healthcare,education? We have basic problems! The federal executive council should Stop living in la la land.

Good news for Nnewi yesoo we are up now!

bigass: unleash the dragon!!! Who unleashed all of you at the same time. Jonathan E warriors

I think the poser should have been, how did you wobble your way here with your BIG-A$$

Nigeria has never lacked good policies so this doesn't sound new to me, what we lack is implementation and enforcement. Its always very easy to formulate wonderful policies on paper, but how do you ensure that the content of those papers are transformed to physical developments for all to see? For a policy such as this to succeed, we all know that certain part of our laws would have to be amended and some new ones made. How do you get the national assembly to that in less than two years considering the volume of bills lying before them unattended to? Secondly, what attempt had been made in the past or currently being made by this government to enforce our current automotive policy? We have not been able to operate what we have properly, how then can we tell areas where we need to modify, delete or include? My little advice to Mr. Minister is that he tries his possible best to use the remaining part of his tenure to ensure that the current automotive policy is properly enforced not trying to introduce something new that I am over 80percent sure isn't going to see the light of the day.

Its one thing to formulate policies and another thing to implement them, am not surprise cos its not new. Nigeria is a country where other Nations come to steal some of their policies because they are very good in policy formulation and very poor in policy implement as corruption has taken. I bet u guys, just watch and see, this won't work cos in the end Aganga, Maku and co will be demanding for their own share aside the share of oga at the top and that of FG and these companies will see it as being outrageous and the next thing will be to fold up.

As a matter of fact, if achieved it will help curb the menace of unemployment but then there are other basic necessities to life that government is neglecting.

Watching with kin interest to see it come to pass shaa

The President and his team of clowns should please spare us this crap. Introducing a paper policy that is beyond what they can handle. I think the president should use his "very small" brain capacity to focus on returning our youths back to school.

[quote The council’s decision is to be backed by appropriate legislation to give comfort to investors that there will be no abrupt change in policy

[/quote]
This fresh air policy is still going to pass through the NASS {pls correct me if I'm wrong} so why the public annoucement? I think it's high time they should criminalise uneccessary noise making.

while government continues to
take the lead in patronage of locally made
vehicles.

This is very important. I hope they are serious this time.

Symphony007: This policy is rubbish and it will collapse like a house of cards, it is amazing how a country with the gigantic amount of BASIC problems it faces. It's government rather than focusing exclusively on them, is jumping from one fantasy policy to another. That is the problem in this country. The leadership has no focus, they hop from pillar to post and low information nigerians cheer them on.

Can the jonathan government put a number on the amount of people it has lifted out of poverty between 2009-2013, how many job has it created? How many more nigerians have access to safe and affordable water,healthcare,education? We have basic problems! The federal executive council should Stop living in la la land.

If you google some of those your questions, you'll find answers.

Pls can you tell us the "gigantic amount of basic" problems you'r talking about?

Provision of portable water is a responsibility of state and local govt. The FG is only bridging the gap because of the failures of the state govt. I know you support Amaechi with all your life, but why haven't you criticised him to for failure to provide Rivers people with portable water? It is not GEJ that will provide Rivers people or indeed any other people with portable water. It is your state govt.

The health care system is a on the concurrent list. The FG constitutional responsibility is provision of tertiary health care. The states and local govt are supposed to provide secondary (general hospitals) and primary health care. Only difficult cases are referred to tertiary health care system, controlled by the FG. So identify and problem and place the blame where it belongs. Critical analysis of the health sector in Rivers State will show that your lover, Amaechi, has failed.

So also the other issues you raised. It is not only GEJ that will lift Rivers people out of poverty. Amaechi and other governors have a very big role to play. Or lets bring it down, its the JOINT responsibility of Amaechi, GEJ and all the local govt chairmen (elected by Rivers people or imposed by Amaechi, not GEJ) to lift Rivers people out of poverty.

I know you'll soon mention ASUU strike or Boko Haram. Govt cannot grind to a halt because of the activities of a certain bandits. N130 billion has been given out to ASUU to return to work while the security forces are battling Boko Haram. But meanwhile, the rest of the country cannot standstill because of ASUU and Boko Haram. The business men at Nnewi or unemployed graduates in Kaduna whose life will be turned around by this new automative policy cannot wait for ASUU strike to be resolved. We have enough graduates already to provide jobs for and it is policies like the automative policy that will provide jobs and uplift people out of poverty.

I know you'r always pessimistic when it comes to GEJ but optimistic when its about your darling, Amaechi. However, the rice self-sufficiency, cassava value chain, sugar master plan, etc policies are already yielding results. The new automative policy will also yield results in terms of job creation, wealth creation, savings in foreign exchange,etc.

Sincere 9gerian:
If you google some of those your questions, you'll find answers.

Pls can you tell us the "gigantic amount of basic" problems you'r talking about?

Provision of portable water is a responsibility of state and local govt. The FG is only bridging the gap because of the failures of the state govt. I know you support Amaechi with all your life, but why haven't you criticised him to for failure to provide Rivers people with portable water? It is not GEJ that will provide Rivers people or indeed any other people with portable water. It is your state govt.

The health care system is a on the concurrent list. The FG constitutional responsibility is provision of tertiary health care. The states and local govt are supposed to provide secondary (general hospitals) and primary health care. Only difficult cases are referred to tertiary health care system, controlled by the FG. So identify and problem and place the blame where it belongs. Critical analysis of the health sector in Rivers State will show that your lover, Amaechi, has failed.

So also the other issues you raised. It is not only GEJ that will lift Rivers people out of poverty. Amaechi and other governors have a very big role to play. Or lets bring it down, its the JOINT responsibility of Amaechi, GEJ and all the local govt chairmen (elected by Rivers people or imposed by Amaechi, not GEJ) to lift Rivers people out of poverty.

I know you'll soon mention ASUU strike or Boko Haram. Govt cannot grind to a halt because of the activities of a certain bandits. N130 billion has been given out to ASUU to return to work while the security forces are battling Boko Haram. But meanwhile, the rest of the country cannot standstill because of ASUU and Boko Haram. The business men at Nnewi or unemployed graduates in Kaduna whose life will be turned around by this new automative policy cannot wait for ASUU strike to be resolved. We have enough graduates already to provide jobs for and it is policies like the automative policy that will provide jobs and uplift people out of poverty.

I know you'r always pessimistic when it comes to GEJ but optimistic when its about your darling, Amaechi. However, the rice self-sufficiency, cassava value chain, sugar master plan, etc policies are already yielding results. The new automative policy will also yield results in terms of job creation, wealth creation, savings in foreign exchange,etc.

i don't need a lecture from you on the structures of the nigerian government nor do i need you to tell me stuff i already know. We all know that there is a collective failure of leadership on all levels of government. This country has greater problems that the frevolous policy. Every short coming you outlined above, the federal government has'nt fared better in their jurisdiction, are federal universities up to standard, do every resident of abuja have access to clean and affordable water? Are all federal roads good? Anybody who told this government that a foreign profit oreinted company will come and open a manufacturing plant in our country with epileptic power supply, insecurity, substandard infastructure, a almost $200 minimum wage and unions so powerfull they strike at the drop of a hat is an amatuer.

A-ZeD:

No it's not a laudable idea. Why do people buy cars (some people have 6)?

Even in the western world where people buy brand new cars, at least 70% are bought on credit. Does Nigeria have a working credit system? No

Simple idea, start with building a credible transportation system so that people won't have to own cars

okpo!! Go n purchase keke napep or bicycle if u no want brand new car.

Symphony007: i don't need a lecture from you on the structures of the nigerian government nor do i need you to tell me stuff i already know. We all know that there is a collective failure of leadership on all levels of government. This country has greater problems that the frevolous policy. Every short coming you outlined above, the federal government has'nt fared better in their jurisdiction, are federal universities up to standard, do every resident of abuja have access to clean and affordable water? Are all federal roads good? Anybody who told this government that a foreign profit oreinted company will come and open a manufacturing plant in our country with epileptic power supply, insecurity, substandard infastructure, a almost $200 minimum wage and unions so powerfull they strike at the drop of a hat is an amatuer.

Very lame reasoning. Guess what? "Foreign profit oriented" companies are already flooding into Nigeria. Check the threads on the Politics board and you'll see a thread about the World Bank placing $1 billion on the table for the private sector investors in the privatised power sector. GE is already settled in Cross Rivers State. More investments are flooding into the country. Every problem you listed is an opportunity for private sector to make huge profits if govt put the right policies in place. One of such policies is the new automative industrial policy.

Nigeria Govt has taught me never to belive any paper policy, the only time i believe in policy is when the " ACTIONS SPEAK LOUDER THAN WORDS" anything outside this na wash.
A lot of policy has come and gone in Nigeria yet we are still where we are.

tomakint: Another + from the staple of Jonathan's good governance! Imagine what this country would looked like in the year 2018 if half of what we spend on cars and machines importations can be retrieved locally through this initiative! Truly, Jonathan is not clueless as widely acclaimed by those parasitic e-rats here

2018 is just 5 years away. You think a policy can be rolled out in this time, and attract investment from Toyota, Honda et al just by wishful thinking?

All this playing to the gallery is just laughable. Secure commitment from the big auto makers before you start embarking on these smoke and mirrors.

Instead of this Government to think of how to drastically slash import duties so more Nigerians can buy new and modern vehicles for cheaper...to minimize fuel consumption, pollution and improve vehicular safety, they are here making noise.

Enough of all this paper policy. Use the money to improve our educational sector so one can at least point to one major and outstanding benefit of this lame duck administration. Work on our healthcare. Those are areas that demand an immediate intervention, not this misguided paper promises.

We have a surfeit of paper promises. We are still waiting to hit the promised 6000MW

Sincere 9gerian:
Very lame reasoning. Guess what? "Foreign profit oriented" companies are already flooding into Nigeria. Check the threads on the Politics board and you'll see a thread about the World Bank placing $1 billion on the table for the private sector investors in the privatised power sector. GE is already settled in Cross Rivers State. More investments are flooding into the country. Every problem you listed is an opportunity for private sector to make huge profits if govt put the right policies in place. One of such policies is the new automative industrial policy.

let's not get crazy here, GE and namadi sambo put a shovel in the ground while being photographed in cross rivers state and you say GE is already on the ground in cross river, how amusing...so inceasant strikes and insecurity are now incentives that attract foreign buisness..once again, how amusing. Once again, we have serious problems. Serious basic problems, the feds should stop living in la la land.

Symphony007: i don't need a lecture from you on the structures of the nigerian government nor do i need you to tell me stuff i already know. We all know that there is a collective failure of leadership on all levels of government. This country has greater problems that the frevolous policy. Every short coming you outlined above, the federal government has'nt fared better in their jurisdiction, are federal universities up to standard, do every resident of abuja have access to clean and affordable water? Are all federal roads good? Anybody who told this government that a foreign profit oreinted company will come and open a manufacturing plant in our country with epileptic power supply, insecurity, substandard infastructure, a almost $200 minimum wage and unions so powerfull they strike at the drop of a hat is an amatuer.

The policy wasn't developed without consulting major car manufacturing firms

Aganga said in arriving at the policy, which took about nine months to put together, the government got the input of some car manufacturing giants like Nissan and Toyota.

These companies, he added, would soon announce their
investments in the country.

www.punchng.com/business/business-economy/fg-to-buy-made-in-nigeria-vehicles/

This manufacturers study trends...they know the revolution going on in the power sector,they know about efforts been made to improve our public infrastructure..airport upgrades, rail revitalization,opening up of river ports e.t.c...

So as a patriotic Nigerian you should applaud a good success when you see one and offer constructive criticisms not some pull-him-down jabs

Sincere 9gerian: ^^ You call them "phantom" enemies? My friend, the bandits who malign and call the president of the federal republic all sorts derogatory names on this forum are not "phantom" enemies. The bandits who attack me and other Sincere 9gerians on this forum are not "phantom" enemies. They'r real enemies. At every opportunity, I will return fire for fire. I will not spare them.

No. They are true patriots who want the best for this country, and want a better country for their children. Traitors like you and your paymasters will see this country burn if it meant you could sift through the ashes for wealth.

Your president is underperforming...Nigeria is underperforming. Some people want positive change, a great improvement in this country. Those are the ones who complain the loudest, the patriots you call 'enemies'. i'd leave you to your conscience, but you've shown several times that you have none

awodman:

The policy wasn't developed without consulting major car manufacturing firms

www.punchng.com/business/business-economy/fg-to-buy-made-in-nigeria-vehicles/

This manufacturers study trends...they know the revolution going on in the power sector,they know about efforts been made to improve our public infrastructure..airport upgrades, rail revitalization,opening up of river ports e.t.c...

So as a patriotic Nigerian you should applaud a good success when you see one and offer constructive criticisms not some pull-him-down jabs

Believe this, you'll believe anything.
They study trends. They know that the 'power sector revolution' has yet to yield any revolutionary change, and the FG is way behind all self-imposed milestones for electricity generation. They know our public infrastructure is still decaying. They know the 'rail revitaisation' isn't all that admirable when we still run the slow, ancient trains that still have limited reach. They know the airport upgrades are not nearly as impressive as the e-warriors would love to make out when one considers the massive income coming in to the FG's coffers from the mandatory FAAN charge and the more that 200% increase in airfare taxes levied by the FG (not to mention the shoddy nature of the job as seen at Lagos GAT terminal)

I WILL applaud a good success when I see it. I just do not see a press declaration as a 'success'. Where were the representatives from Nissan and Toyota if the FG truly reached even a gentleman's agreement?

What they see is the rising insecurity and the growing radicalization of Boko Haram. They see the swelling ranks of unemployed graduates. They see the near destruction of our educational system by an uncaring Government. They see the poor state of our healthcare system. They see the increasing rate of kidnapping.

They see the 2015 elections as a massive spark point...including the incendiary statements by friends of the President like Asari Dokubo.

So tell me, what trends are they seeing?