barcanista:

I support the Automobile policy of this government though I feel that they can do more. Reversing the policy high tarrif on automobile import or lifting it is counter productive. I will even support 80% tarriff so as to discourage patronage to favor local production. However, the government should see that they check the influx of such goods via illegal routes

talktimi:
even though we've had a few e-clashes, I admire your (sometimes) balanced view on topics

Zikkyy:


The auto policy as it is is designed to bring pain to Nigerians. We are not ready for it. Our economy just cannot take it. It makes little difference if the car is imported or manufactured locally. How Nigerians buy brand new automobiles (aside politicians and corporate)? I really don't see locally assembly making any serious impact if our economy cannot consume their output. Let the Government focus on areas that will impact more on the economy e.g. power, refining, agriculture e.t.c

Zikkyy:


The auto policy as it is is designed to bring pain to Nigerians. We are not ready for it. Our economy just cannot take it. It makes little difference if the car is imported or manufactured locally. How Nigerians buy brand new automobiles (aside politicians and corporate)? I really don't see locally assembly making any serious impact if our economy cannot consume their output. Let the Government focus on areas that will impact more on the economy e.g. power, refining, agriculture e.t.c

ilugunboy:



When you encourage 100-200 small modular power operators generating around 10MW per plant in each regions of Nigeria and dedicated to specific neighborhoods ...you can easily add around 2,000MW per region.....that is 12,000MW.

Honestly power generation and 24hr power supply is not a difficult science, as the likes of the Lagos State government, Dangote, Nigeria flour mills and BUA have proven to us.....its a science that have been in existence for several years ..

We just need a governemmt that can take such bold initiative and not the halfhearted privatization that was sold to us...

barcanista:
Thanks. We are brothers remember... I support the Automobile policy of this government though I feel that they can do more. Reversing the policy high tarrif on automobile import or lifting it is counter productive. I will even support 80% tarriff so as to discourage patronage to favor local production. However, the government should see that they check the influx of such goods via illegal routes

fyneguy:


You do not understand the issues. Yes many companies generate electricity which they can not plough to the grid because of transmission inadequacies.

By LAW, only TRANSCON can evacuate generated power and dump on distribution lines. Rivers state has an IPP with over 100MW capacity but your President instructed Transcon to not take from it because of the face-off with Amaechi.

Osinbajo is talking about decentralizing from generation up to distribution by setting up Modular plants with transmission and distribution facilities, as against the current inefficient model.

Boss13:

Of course, the differential between importing a new car and assembling them here in the country may not be much.

The issue should be, how do we get the average nigerian to buy these cars manufactured or assembled in nigeria.

Obiagelli:


What gains if i may ask? Nigeria is a huge market and infrastructure (power) is the biggest incentive to kick start any sector not increased tarrifs.

We have outrightly banned frozen chicken but it hasn't helped our local production as 80% of what you find in the market today is smuggled in.

barcanista:
Firstly, the automobile policy of Jonathan's government is a welcome development inasmuch as they pursue it holistically(this is another subject). Nigerians buy automobiles, the rich politician, the contractor, the banker, the bus "danfo" driver, the low-middle class etc all buy vehicles. The policy will create jobs, lots of jobs, it will cause increase in patronage of raw materials thereby cause increase in trade and commerce, it helps our Balance of trade as we will be importing less commodities, whch also reduce inflation and will cause the naira to appreciate since local automobile transaction will be in naira and there will increase in naira circulation. The policy of government makes it difficult to import cars and put the locally made product at advantage in the market. Imagine two SUVs of similar specification, one costs N1million, the other costs N5million or N7million. Which will receive more patronage all other things being equal? Imagine the number of jobs this will create, imagine the potential export earnings this will bring to us and its impact on our Gross Domestic Product. Bros, Nigeria can't afford to rely on import else we'll be at the mercy of the countries we import from. This sector will impact GREATLY on our economy. Personally, I will want government to review it to 80% tarriff and put adequate facilities at the borders. Those importers should invest here or support our local investors.

dazdilijae:


What would be the source of the so called modular power generators? Hydro? Nuclear? Thermal? Wind? Please tell us how and where you intend to get the source in the different regions its easy to postulate ideas but practical implementation is another.

If I was that easy why hasn't Lagos state done it?
please ask the Dangote , Nigeria flour mills etc the cost of producing their power consumption
Talk is cheap and that's all APC does

barcanista:

Nigerians buy automobiles, the rich politician, the contractor, the banker, the bus "danfo" driver, the low-middle class etc all buy vehicles.

barcanista:

The policy will create jobs, lots of jobs, it will cause increase in patronage of raw materials thereby cause increase in trade and commerce,

barcanista:

it helps our Balance of trade as we will be importing less commodities, whch also reduce inflation and will cause the naira to appreciate since local automobile transaction will be in naira and there will increase in naira circulation.

barcanista:

The policy of government makes it difficult to import cars and put the locally made product at advantage in the market. Imagine two SUVs of similar specification, one costs N1million, the other costs N5million or N7million. Which will receive more patronage all other things being equal?

RedArrow:
PDP were counting their chickens before they are hatched.
No enabling environment for production yet they increase tariff.
Sai Buhari/Osinbajo Till GEJ can differentiate between production and Assembling

deemdeem:

[b]
The auto policy is good just like the proposed full deregulation of petrol but the timing is wrong.
Some major infrastructural deficiencies needs to be sorted out first before the auto policy should be hailed.
These deficiencies primarily include but not limited to Power.
Innosun for instance highest overhead cost during production goes into power generation to his factories. He in return, place it on the final cost of his vehicles produced. I don't know of any of his vehicles that is less than 2.5 million (before fall of naira ooooo).
How many Nigerians will choose to go for an Innosun at such price when u can get a good tokunboh C Class Mercedes-Benz with lesser amount? In my opinion, 2005 benz is still superior to its 2015 Innosun counterpart.
Till date, govt still remain Innosun biggest customer. This shouldn't be. Innosun cars price needs to come down and this will only happen if cost of production is drastically reduced. That should be out govt greatest concern now and not increasing tariffs therby increasing and forcing on Nigerian throats very expensive vehicles which doesn't[/b] reflect true value for money.

themano:

Which 80%? You APC people just open your mouths and spew fake data. An industry i sure know more than you do. Pls keep quiet .

deemdeem:

[b]
The auto policy is good just like the proposed full deregulation of petrol but the timing is wrong.
Some major infrastructural deficiencies needs to be sorted out first before the auto policy should be hailed.
These deficiencies primarily include but not limited to Power.
Innosun for instance highest overhead cost during production goes into power generation to his factories. He in return, place it on the final cost of his vehicles produced. I don't know of any of his vehicles that is less than 2.5 million (before fall of naira ooooo).
How many Nigerians will choose to go for an Innosun at such price when u can get a good tokunboh C Class Mercedes-Benz with lesser amount? In my opinion, 2005 benz is still superior to its 2015 Innosun counterpart.
Till date, govt still remain Innosun biggest customer. This shouldn't be. Innosun cars price needs to come down and this will only happen if cost of production is drastically reduced. That should be out govt greatest concern now and not increasing tariffs therby increasing and forcing on Nigerian throats very expensive vehicles which doesn't[/b] reflect true value for money.

Obiagelli:


And who told you there ain't power plant running on cooking gas?

abu12:
Despite all the advert been run on nairaland by innoson vehicle https://www.nairaland.com/1893524/inside-innoson-auto-factory#26146310

We are yet to see this cars on the on the road.

abu12:
Despite all the advert been run on nairaland by innoson vehicle https://www.nairaland.com/1893524/inside-innoson-auto-factory#26146310

We are yet to see this cars on the on the road.

Chigold101:
Because your brain is not working very well, u dont know that the gvernment made importers of uncoupled parts pay as low as 10%duty.

what enabling environment are u talking about? INNOSON is already in high gear. Producing cars, trucks & SUVs at Nnewi.

PEACE MASS TRANSIT is almost ready to start production in Enugu.

ANAMCO which GMB, IBB, ABACHA killed & OBJ buried has started producing too.

How can you create job when you scare manufacturers away.

If you talkof power, Dangote has production plants here & there; how do they run their bussiness? How do they get their power.

APC is going to take us back to the years of over dependent on imported goods & cars... GOD FORBIT IT...

Justcash:


The investment is already in place. It needs to be protected because it creates jobs, then deficient infrastructural facilities should be added to reduce the cost of production. That is a better strategy than the reduction of tariff. If you reduce tariff, you'll kill the production plants. It is better to ban the importation of cars to protect domestic jobs. With time, Nigerians will get used to the price and the spiraling job creation impact of supporting industries will be enormous. As expected, imported brands will seek for ways to manufacture locally for profit and government's protection.

OSINBANJO is not thinking properly.

Boss13:


The average citizen or residents in developed countries cannot truly afford a new vehicle by paying outright cash. But they have designed credit schemes, hire purchase rights, vehicle lease options, monthly repayment plans and also trade-ins schemes so that they can be affordable. Do you think an average american will go to a vehicle dealer/distribution shop and count $40,000 or even $27,000 to buy a vehicle with cash except you are an I.T guru, investment banker (who has received his yearly bonus), a celeb or sport player. The IRS will be knocking on your door the next day.

Of course, the differential between importing a new car and assembling them here in the country may not be much. The issue should be, how do we get the average nigerian to buy these cars manufactured or assembled in nigeria.

pedel:
This is the most informed contribution so far on this subject. How do you expect people who have never left Nigerian boarder to understand that there must be a financial system in place before those policies can work. Some people are just quoting economic theories that they learnt in the university whereas our national circumstances does not yet support them. Now I can't afford a new car, no bank is going to give car loans at reasonable interest rate and I can't afford an imported car because of the tariff. So tell me how the policy benefit me.

deemdeem:


And who told u that importation of cars doesn't create jobs. Starting from the buyer, clearing and forwarding agents, transporters, auto mechanics down to the scrap metal man that deals with the remnants. Don't be deceived, there is currently thousands if not millions benefitting from the status quo.
The truth is as long as prices of Nigerian made prices are at the high side, it will never be attractive to the vast majority. I don't blame the producers either, their cost of production is also high. If Nigerians don't buy, won't the company fold up?
Even with the increase in tariff, tokunboh cars are still cheaper, attractive and even safer so what really should be the primary catch to the Nigerian consumer? again I state, the policy is good but the timing is wrong.

atlwireles:
So you're telling investors building assembly plants to back off . Because you intend to reduce tariff, that have not gone up yet?


What is this decentralising power generation? Is power production currently centralised?

deemdeem:


And who told u that importation of cars doesn't create jobs. Starting from the buyer, clearing and forwarding agents, transporters, auto mechanics down to the scrap metal man that deals with the remnants. Don't be deceived, there is currently thousands if not millions benefitting from the status quo.
The truth is as long as prices of Nigerian made prices are at the high side, it will never be attractive to the vast majority. I don't blame the producers either, their cost of production is also high. If Nigerians don't buy, won't the company fold up? This should be our govt primary concern. help the companies in reducing their overhead therby reducing the cost of these vehicles therby becoming attractive to vast majority of Nigerians and not only govt.
Even with the increase in tariff, tokunboh cars are still cheaper, attractive and even safer so what really should be the primary catch to the Nigerian consumer? again I state, the policy is good but the timing is wrong.