IBBG:
Long over due. When the import duties were high locally assembled cars was almost as expensive as their foreign counterparts, so the essence of hiking the import duties has already been defeated. What i've discovered with nigerian economics whenever an imported item is banned or import duties hiked in other to protect locally manufatured, instead of the locally manufactured goods to become cheaper and available, it becomes almost as expensive as the foreign goods, making the purpose of protecting locally manufactured goods defeated. I believe the problem is either we lack the capacity to produce the goods we are banning or our locally manufacturers are just greedy with hiking their price unecessarily for huge profit

kingreign:
We know the FG increased the import duties to favour local manufacturers, assemblers etc, while deriving more income for itself, but PAN is faulting it for their selfish aims.


FOOTNOTE : Folks should learn to understand before hurriedly commenting. The FG sometimes ago increased the import duty to favour local manufacturers and drive home more revenue. Now, the FG wants to reduce it, PAN is complaining cos of their selfish gains.

Elsueno:
Sai Baba

U think the rich refusing to establish business in Nigeria don't have their reasons?

Government can just wake up and destroy ur investment easily

tasalanoni:
The problem with our locally made goods is mostly a lack of quality. Competition is very essential for refined quality and that's the reason foreign goods with superior quality should be allowed entry into the Nigerian marketspace. Innovation and drive for improvement are non existent in our culture. PAN has been around for over three decades yet with very little impact in the automotive industry save for the 504, 505 and other models of the 80s. Same can be said of other consumer goods that are produced locally. Aba is the textile and leather hub of the country but nobody with a top-notch taste patronizes goods from there and that explains why the trade of secondhand clothes continues to flourish
Before now, locally grown and processed rice was almost inedible because the stone to rice ratio was almost 1 to 1. Competition against imported foreign rice made our local farmers up their game and for the first time de-stoning was introduced. Tarrif hike and import prohibition only enrich an already corrupt custom and smugglers who take advantage of porous borders to flood the market with contraband goods and continue to weaken an ailing local manufacturing sector.

PhiliptheArab:


Locally made cars are expensive because

1.Power sector in Nigeria is not working...largely because we insist on selling power that costs N53 per kwh to produce/generate at N30 per kwh or less.

2.Crucially, we don't have enough small scale industries that make the various tiny parts that go into a car. Meaning companies either have to make those parts (PAN is a good example) or import them (INNOSON...though they are also making more and more componets at home)...and either way that makes production expensive.(Innoson's boss some years ago callled for reduction in import duties on imported car components)

3,.Ajaokuta was not completed.

kingreign:
We know the FG increased the import duties to favour local manufacturers, assemblers etc, while deriving more income for itself, but PAN is faulting it for their selfish aims.


FOOTNOTE : Folks should learn to understand before hurriedly commenting. The FG sometimes ago increased the import duty to favour local manufacturers and drive home more revenue. Now, the FG wants to reduce it, PAN is complaining cos of their selfish gains.

bendike:
Nigerians have been so impoverished that they cannot afford brand new cars. Just forget it!
There is a PAN car on this forum for 30m. A mid range car for that matter.

Solution, duty should be reduced or removed on tokumbo cars for the general masses.
To encourage ckd assemblers such as PAN, government should patronise only locally assembled vehicles to support the local industry since they are the only ones that can afford new cars. Ie government agencies should by law only buy them and not imported vehicles.

AerialMapper:
Whether they decrease or don’t decrease import duties, Nigerians do not want to drive the “cartons” being produced locally!

High import duties encourages smuggling and the government loses revenue entirely. When the cost of smuggling is higher than the cost of import duties, importers will use the ports rather than smuggling routes. The broke government will get more revenue and we can drive the cars we want to drive.

dalass:


Hope that decision won't kill the remaining Automakers still struggling simply because our politicians have insatiable tastes for foreign/ imported cars

Tango123:


Do u understand that reducing it will lead to job losses in that sector?

CSTRR:

No problem.

As long as you don't prefer their economy and Job creation levels.

Just accept your position as consumers with a consumer economy.

NIgeria is not even in the G-20.

Una no dey shame.

dalass:


Hope that decision won't kill the remaining Automakers still struggling simply because our politicians have insatiable tastes for foreign/ imported cars

Tango123:


Do u understand that reducing it will lead to job losses in that sector?

loswhite:
How do you mean wake up and destroy ur investment? Does ur investment include exploitation? Look at the rice situation..lol local rice is now 30k...I hope ppl stop posting like bunch of idiots on this forum

Xisnin:
Good. Vehicles are not food that should enjoy lower duties. Those who won't buy Nigerian-made vehicles should be ready to pay through their noses.

Elsueno:
Sai Baba

U think the rich refusing to establish business in Nigeria don't have their reasons?

Government can just wake up and destroy ur investment easily

texazzpete:


If thats what it takes, then let them die

texazzpete:


Why would reducing it lead to job losses? That's just silly scaremongering

dalass:


You do realise that when they die

- The people employed there lose jobs and thus can no longer take care of themselves and their families
- The taxes paid by such companies and also taxes paid by such workers disappears with all utility bills they pay
- This further dents the IGR and in effect Nigerian economy!
- We use our hard earned forex to import, in essence boosting other country's economy at our own expense

Omoslim26:
Ok

This Country sef na real wa

everytime na im wahala dey wear komkom shoe

naijadrivablog:
Most Nigerians' purchasing power is still low and cannot afford Brand new cars.

Reduction of import on cars is the right thing to do.

dalass:


You do realise that when they die

- The people employed there lose jobs and thus can no longer take care of themselves and their families
- The taxes paid by such companies and also taxes paid by such workers disappears with all utility bills they pay
- This further dents the IGR and in effect Nigerian economy!
- We use our hard earned forex to import, in essence boosting other country's economy at our own expense

70% import duty on vehicles creating bottlenecks

Speaking with Daily Sun, former member of Presidential Taskforce on Reform of Customs, Lucky Amewiro, said that the Nigeria auto policy has failed when compared to other countries auto policies.

According to him, the auto policy is creating transport problem because there are a lot of auto policies that geared towards making vehicles unaffordable. The vehicles are very expensive and most of them are no longer affordable.

“We have policy on papers but we are not seeing the reality on ground. This policy has been there since 2013. We are making our position to be able to make things right but we find out that the government is not interested in anything at all or in any changes that is just the truth.

It is now obvious that every sector of the economy is having problem and the government is not ready to make any changes. Nigeria is no longer what it used to be when one will write the government, and it would look into the issue and resolve it promptly.

Look at Ghana’s auto policy and you can see it is quite different from Nigeria’s. Nigeria’s own is expensive. Most of the vehicles are not affordable and are not vehicles a common man can lay hands on,” he argued.

He said an accidented vehicle is a different thing. While the auto policy is talking about manufacturing new vehicles and bringing them in, the policy has virtually made the vehicles very expensive and unreachable for the common man.

“The impact of the policy, if you look at our trailer, our own policy is always done on revenue generation instead of investment. Our auto policy is extremely faulty. You cannot see the relevance of the policy.

“If you see Ghana’s auto policy, you will be shocked. The Ghana auto policy is for the middle class to own cars. But our own policy is working up to 70 per cent and is increasing everyday. You pay duty more than is necessary. Our policy is not designed for the poor; it is just a policy on papers,” he said.

For his part, the President, Shippers Association, Lagos State, Mr Jonathan Nicole, said Nigeria should take it one after the other because without these cars people are bringing, transportation would have been something else.

“The accidented vehicles are covered by insurance companies. So when cars like that get accident, instead of them going for repair, they write off those cars. Insurance companies will write them off and Nigerians will go and buy.

“So when they bring it here, take it to the workshop, replace the damaged part that will last for another three to four years. That is the way of helping the Federal Government with their transport system because Nigerian transport system is epileptic,” he said.

However, he said the auto policy should be something that Federal Government should have given about 15 to 20 years masterplan and in between these years, they can begin to bring the cars in, as government can’t do everything at the same time.
https://tbiafrica.com/2020/11/18/70-import-duty-on-vehicles-creating-bottlenecks-for-nigerian-transport/

kingreign:


Have your government been proactive? No! Instead they just woke up one day and increased the import duties. Has this improved manufacturing and assemblies and driven down the prices of cars? NO!
Did they realize their follies? Hopefully Yes!
You're all about proactivity leads to productivity when the basis and foundation for manufacturing isn't laid in the nation. No stable power supply, very few skilled hands locally to drive home the local content delivery, unstable laws and acts of government, poor capital support from local financial institutions.

WHAT RUBBISH NONSENSE ARE YOU YAPPING ALL ABOUT?

Seniorwriter:


I can see you failed to accept your mistake as regards your first comment which is opposite of what the thread is about.
My trademark quote is a parabolic reference to motivate in this forum and not solely for this thread!
[s]I just hope people like you on the forum read and think before they post their comment[/s]!

PROACTIVITY Leads To PRODUCTIVITY!

©Seniorwriter

kingreign:


@bolded, is it that you're slow to understand or just plain daft?

@ struck out, before you bring that silly stupid comment at me, look at yourself and ask yourself that question. Most probably, I have read much more than you and also thought and discussed with a much wider and learned audience than you have ever done. We do not belong to same demographics.

Stay your lane, lemme stay my lane.