ok

I do not think that this fare, but every government has responsibility to work their citizen's favor.

WHY POLICIES FAIL IN NIGERIA

Any successful policy is like making a pot of soup. All ingredients must be added at the right time and at the right proportion. Which is where policy makers in nigeria get it all wrong.

Why no locally assembly plants are in Nigeria has little to do with only the duties on the imported cars. The other ingredients are not just right.

Power supply
Condusive environment
Corrupt govt officials
And of course. . The low tarrif on the imported cars.

Increasing just the tariff without the other ingredients wld amount to the policy failing on the long run. Its just akin to getting maggi and expecting a delicacy. Heck, we dnt even hv the fire and/or pot, removing tariff is like just having the maggi even befor the pot and fire.

Smtimes I just cnt help but wonder how critical our policy makers are

sammieguze: Bad news for car dealers

And prospective car owners

cuteboy2:

This is FALSE!!!! Have you read the New Automative Policy?
Go and read the statement by the PRO of Tin Can Port Command of Nigerian Customs Services embedded in the article in your original post. I extract it for you below in case you don't have the patience to read your entire post.



It is sad that people will copy and post news clips from online media, and yet either are too lazy to read what they have posted, or maliciously twist it to fit their ill-conceived intent. This policy and its implementation has been severally discussed in many posts on NL, and people have been sufficiently educated. Don't start this falsehood all over again.

So your entire point is this policy does not apply to Tokunbo vehicles right now, but will apply in 4 months time?

Its a welcome development. At first we will suffer it but later we shall enjoy it and all those ricketty dumped used cars that many people bring into Naija will stop and we shall enjoy a new ara of affordable brandnew cars again

t2luv1:



Going by Nigeria history . What does your gut feeling tells you?.

nuff said bro

onyi osi, onyi beribe! thief! this isnt for niaja sake, dont be mistaken oooo. uhn!!!!

I hope it does not affect Tokunbo vehicles? So what is the duty payable on Tokunbo cars? sometimes they tend to confuse people with policy reversal as I read early this year that it was for tokunbo vehicles also.

zicoraads: Pity yourself, not Nigerians. Some of you have lost all sanity in the process of criticism, not minding how dumb you sometimes sound when trying too hard to be of relevance.

Do you even have any idea how many jobs this will create? Do you? Just check how many jobs the auto industry in South Africa creates. Car manufacturing plants, asSembly plants, spare parts and so on.

It is better to keep quiet and be thought a fool, than to speak and remove all doubtsm

Please spare us the lies, what stupid job, the truth is this policy will hit the middle class earners hard, the implication is prices of both brand new cars and tokunbo cars increase drastically. now buying a new corolla which was 3.5m some 3 yrs back is now 6m, all cos of this stupid tax. Even the government (ministers, senator and executives)introducing the policy i dont see them driving the so called made in Naija car.
We have policy implementors who dont think always assuming, they undermine certain factors assuming all Nigerians can cope with the drags. The cost of producing anything in the country is high, due to the absence of the required amenties like power, materials used for production. compared to the countries where these car are being made. Also country stability also very cruticial in attracting investors especially when it comes to investing (sighting manufacturing plant), with all these recent happenenings like bokoharmA, kidnapping , bomb explosions here and there, political instability, ebola etc. no sane foreign business man or company will be willing to risk investing alot in such a nation. Findout if you have friends that work for mulitnational, they will tell u Nigeria is a high risk zone. Travleling into naiaja requires some form clearance. dont get me worng they have asset here but on a small scale. Even the so called telecoms sector are nw outsourcing most of their staff and services. Am certain 99 percent of all the parts used a manufacture the so called made in Naija cars, will be brought from oversees. what will be done here will be assembling. they may employ some few labourers and engineers (at best 3000) nation wide. Compare that to about 30 million nigerians who will be impacted.

I feel the approach is very wrong, people shd analyze policies properly before blindly supporting them. What FGN cld have done is to give the so call naija company(local vehicle manufacturers) some form of waivers and duty free importation or a reduced company income tax. Let them come in, produce cars and employ. Then the government can gradually begin to ease of importation, introduce tax for imported cars. the policy is another means of generating revenue for the Government which to me is unfair on the average working class. why must the citizens always bear the burden, cant they think?

I have nt gainned any signifcant benefit from the privitisation of nepa, or partial removal of subsidy although i knw it remove alot of burden from the Government.
I Personally i see it as a wrong move at the wrong time. but that just me. I know i sound negative but I only speak from experience and the many failed policies

linnyx: As long as it doesn't affect tokunbos then no problems...

haba dont you get... now a baby boy that was supposed to be say 700k will now be 1.2 million

Trying to justify same policy for tokunko's vehicles. Bad rubbish.

sammieguze: Bad news for car dealers

Wrong. Bad news for imported car buyers.

On the customs website, there is provision for importation of semi Completely Knocked Down (CKD) vehicles. The total duty/levy on semi-CKD is about 20%. I would assume that any smart importer would bring the vehicle in as semi- CKD. All it would take is to employ people who would put the parts together; considering that labor is cheap in Nigeria, this definitely would be more cost effective.

In a layman term, importing semi-CKD means you ship only body, and the mechanical/electrical components are packed and shipped separately.

sammieguze: Bad news for car dealers

Like serious I will love Toyota , Range Rover, Nissan n others to have their branches in Nigeria.
This will increase economic growth n diversity rather than them coming here to pack millions of naira away.

alaladakosta: I pity nigerians under GEJ rule.

nigerians pity you too!

sonnie10: On the customs website, there is provision for importation of semi Completely Knocked Down (CKD) vehicles. The total duty/levy on semi-CKD is about 20%. I would assume that any smart importer would bring the vehicle in as semi- CKD. All it would take is to employ people who would put the parts together; considering that labor is cheap in Nigeria, this definitely would be more cost effective.

In a layman term, importing semi-CKD means you ship only body, and the mechanical/electrical components are packed and shipped separately.

Quip.

There are two categories: Completely Knocked Down (CKD) and Semi Knock Down (SKD)

alaladakosta:

Ok, I see. The fire is what he went to purchase with the 9.3million dollars.

hmmm.......food for thought...

sheffyUTD:

Quip.

There are two categories: Completely Knocked Down (CKD) and Semi Knock Down (SKD)

but the CKDs' would require more technical coupling, which at the end of the day would not be cost effective.

sonnie10: On the customs website, there is provision for importation of semi Completely Knocked Down (CKD) vehicles. The total duty/levy on semi-CKD is about 20%. I would assume that any smart importer would bring the vehicle in as semi- CKD. All it would take is to employ people who would put the parts together; considering that labor is cheap in Nigeria, this definitely would be more cost effective.

In a layman term, importing semi-CKD means you ship only body, and the mechanical/electrical components are packed and shipped separately.

Easier said than done.
Would you break down your 2007 Camry and allow your road side mechanic and technician re-assemble it in Nigeria for you?
Or you want to tell us to take it to Innoson factory to get it assembled?
20% tariff/Levy you stated still takes the clearing cost of the Broken down 2007 Camry to around N400k so my bruva I still see no good in it.

sonnie10:

but the CKDs' would require more technical coupling, which at the end of the day would not be cost effective.

Yeah.

It's designed for assembling plants with those stuff in place, not individual dealers. Plants with no such things will have to upgrade and train their employees, that is where the manpower and technology development aspect come in.

Can anyone help explain what a new car is in naija context because it is possible to buy a used 2015 model year car abroad.

A new car comes with title from manufacturer whole a used one comes from dealer is has a history of previous owner. Once you finished transaction on a car document will be sent with information on who the owner is and you get the title later. If you bring the car back after one minute it is used that is why they say a car depreciates by $5000 once you drive it off the lot so legally it is used.

Nigeria has a law different from a civil society anyway

femmy2010:

Easier said than done.
Would break down your 2007 Camry and allow your road side mechanic and technician re-assemble it in Nigeria for you?
Or you want to tell us to take it to Innoson factory to get it assembled?

In as much as we are all aware that anything goes in Nija, I believe that any thing that is worth doing is worth doing right. You do not have to own a plant as big as Innoson to do this. Any certified auto mechanic, given the right equipment and tools would be able to mount an engine/ transmission and suspension. Same goes for the electrical aspect. What else is a car made up of? This is not the job for engineers.

sultaan: Can anyone help explain what a new car is in naija context because it is possible to buy a used 2015 model year car abroad.

A new car comes with title from manufacturer whole a used one comes from dealer is has a history of previous owner. Once you finished transaction on a car document will be sent with information on who the owner is and you get the title later. If you bring the car back after one minute it is used that is why they say a car depreciates by $5000 once you drive it off the lot so legally it is used.

Nigeria has a law different from a civil society anyway

People maybe able to use that loophole for now. That is why they intend to extend this to used vehicles by next year.

sheffyUTD:

Yeah.

It's designed for assembling plants with those stuff in place, not individual dealers. Plants with no such things will have to upgrade and train their employees, that is where the manpower and technology development aspect come in.

Are there policies in place to set standards as to what defines an assembling plant in Nija? Any dealer in Nija can register an "auto workshop" as a separate business, in the name of an assembling plant. I don't think CAC would reject the application.

35 levy has jst created room for more corruption.Agents will rather pay of customs then pay d 35% srry to say.only God knws wen dat planet implention will start.

I think some of those accursed Nissan Micra are imported with their roofs cut off to bypass some custom regulations.

They then weld the roofs back on.

Most Naija folks don't get it. This has increased the cost of utility vehicles like trucks, buses, minivans and pick ups by 200%, this applies to both new and used.So cost of moving goods, people and services is going up.

Also, the cost of clearing construction and heavy equipment has gone up by almost 200%; this applies to used and new. Cost of executing project is going high.. Business owners are always going to pass on the costs to consumers as usual.