Just of recent the Federal government through the Honourable Minister of Industry, Trade and Investment declared its intention to hike the tariff for the importation of second-hand cars just after the approval of the new automotive development plan by the Federal Executive Council. This in fact is a highly welcome move which if followed the through the right way, can help reduce the heavy influx of used vehicles into Nigeria and encourage the uprising of local vehicle production factories capable of generating jobs and improving Nigeria’s economic status.

But knowing well the Nigerian reality on ground, chances are that this move by the government will lead to the masses suffering even more as currently affordable vehicles will become too pricey also, owing to higher demands for brand new cars, these kind of cars may just become hopelessly unreachable to the normal gainfully employed Nigerian.

So why is this not the right solution? There are a myriad of issues one has to consider before proffering likely solutions, some of the pending issues here are as follows:

Nigerians have been exposed to quality cars: so mediocre cars without track records won’t just cut it. Local vehicle manufacturers have to do more than bringing in modified Chinese vehicles and coupling them here in Nigeria, then expecting government to literally force Nigerians to use these cars. One thing the government has to realize is that even the Chinese citizens hardly use Chinese made vehicles and that Chinese vehicle manufacturers have gotten this far because they liaised and are still liaising with more experienced auto-makers. Vehicle manufacturing isn't easy to kick-start and it is even more difficult sustain when there is little demand for produced vehicles. Staying relevant in the automobile world has a lot to do with truly winning hearts of automobile buyers and competing fairly.

There are no guarantees/structures to ensure new car importation will end anytime soon: evidently the set of traders that are probably clamouring for this move are the brand new car dealers, most of which have shown very little interest to set up real vehicle production shops locally. Nigeria’s strategic location and regional relevance should be every long-term investor’s haven; but the problem clearly lies in the abundance of short term investors with very little passion for creating more jobs and pushing Nigeria’s automobile industry forward.

So what solution should the FG be looking at?

Setting up price-control regimes by liaising with SON: What structures are currently in place to ensure prices of brand new vehicles won’t spike unreasonably? If FG can’t confidently answer this question, its better this move is suspended until power is in place which will raise the hope for sustainable developments by making Nigeria more appealing to foreign investors. It’s simply impossible to control pricing when standards can’t be controlled.

Liaising with key dealerships and strike progressive deals: because once the wheel is set in motion it means more money for dealers; but what incentives are in place to ensure the common hard working Nigerian gets to drive a good brand new car?

In conclusion, the Federal government should desist from replicating solutions that were successful in other countries at an entirely different time. Nigeria requires unique solutions.

SOURCE: http://autobaseafrica.com/used-vehicles-import-tariff-increase-not-the-right-solution/

I would like to see the politicians senators ministers governors ride made in Nigeria car if they mean biz.