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Nairaland Forum / Nairaland / General / Politics / APC Will Slash Tariffs On Imported Cars -osinbajo (27061 Views)
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Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Zikkyy(m): 10:25am On Feb 12, 2015 |
barcanista: 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 1 Like 1 Share |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Boss13: 10:38am On Feb 12, 2015 |
I agree with decentralised the production of power. It will increase the chances of achieving constant power supply. However, the disadvantage is enabling corrupt leaders access funds (either by borrowing or donations) meant for power for their personal use and the process would be bastardized. I do not agree with reducing import tariff on imported cars. Comments like this make car manufacturers halt plans to build assembly plants. Osinbajo, Nigerians prefer NEW CARS, it is condition that makes us patronized used vehicles. Reducing import tariff will make new cars unfavourable and the auto-mobile policy being currently implemented will be thrown away. |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by EMANY01(m): 10:40am On Feb 12, 2015 |
talktimi: Me too I'm happy he saw and admitted (albeit subtly) the Professors statement for what it is: A MASSIVE POLICY DISASTER. Most of his colleagues,some of them people I had grudging intellectual respect for (in time past, no more) see no problem with the certain disruption to our economic development,a good number of APC's policy proposals will result in. |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Boss13: 10:44am On Feb 12, 2015 |
Zikkyy: 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. 5 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 10:46am On Feb 12, 2015 |
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. Zikkyy: 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by dazdilijae(m): 10:46am On Feb 12, 2015 |
ilugunboy: 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 5 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by talktimi(m): 10:55am On Feb 12, 2015 |
barcanista:correct guy, we must drink orijin together one day |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by talktimi(m): 11:01am On Feb 12, 2015 |
Osinbajo should have spoken of things like windmill or solar farms and even spoken about encouraging people to utilize solar energy even if its the subsidizing of high quality solar panels and inverters instead of telling enlightened Nigerians that the apc govt will be trucking gas all over the country |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by dazdilijae(m): 11:07am On Feb 12, 2015 |
fyneguy: Please where is the Rivers IPP generating 100MW you talk about located is it the same below? http://www.channelstv.com/2012/05/20/power-projects-in-rivers-state-suspended-due-to-poor-quality-of-work/ 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Zikkyy(m): 11:18am On Feb 12, 2015 |
Boss13: Thank you. "how do we get the average nigerian to buy these cars manufactured or assembled in nigeria"? This is why i say Nigeria is not ready for local assembly. The truth is that majority of Nigerians cannot afford brand new cars. So who is going to consume the output? Putting a credit system in place is one thing, can we afford the credit? do we earn enough to qualify for the credit? 1 Like |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by themano: 11:27am On Feb 12, 2015 |
Obiagelli: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 . 6 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 11:31am On Feb 12, 2015 |
barcanista:[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. 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 11:34am On Feb 12, 2015 |
dazdilijae: Lagos already has modular power stations serving strategic locations and facilities not connected to grid. 1 Like |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Zikkyy(m): 11:44am On Feb 12, 2015 |
barcanista: Mainly tokubo vehicles except for politicians and extra large contractors. We are talking about brand new cars. that's what the local plant will be producing. barcanista: It will create lots of jobs if we are able to consume everything that's produced. The volume of imported vehicles is about 60,000 annually (if am correct). The implication is that the volume cannot sustain more than two or three manufacturers. So i don't see the lots of jobs anywhere. You don't need local assembly to increase patronage of raw materials. It's even easier and better to start with the local production of replacement parts to service vehicles in use. barcanista: Focus on refining first. Impact of imported cars on foreign reserve is not so material when compared to refined petroleum products (in tens of billions USD). Refining will create more jobs, open up more industries (petrochemical, chemical, plastic, textile e.t.c). barcanista: This is based on the assumption that we can afford the cheaper alternative, but we know local version is not cheap. 1 Like |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Justcash(m): 11:44am On Feb 12, 2015 |
Please, somebody should tell OSINBANJO that Nigeria has an active auto manufacturing industry that is multiplying job opportunities everyday. These guys are planning to take Nigeria back to the era of extreme dependence on foreign countries. No wonder Oyibo people dey scheme for them. 6 Likes
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Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Chigold101(m): 11:46am On Feb 12, 2015 |
RedArrow: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... 3 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Zikkyy(m): 11:48am On Feb 12, 2015 |
deemdeem: Thank you. 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 11:51am On Feb 12, 2015 |
themano:You want to debate agric with me? Pls tell me how many broilers you find in market today as processed chicken 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Justcash(m): 11:55am On Feb 12, 2015 |
deemdeem: 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. 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 11:57am On Feb 12, 2015 |
Obiagelli: This girl, stop commenting on topics you don't know crap about. 3 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by abu12: 12:02pm On Feb 12, 2015 |
Despite all the advert been run on nairaland by innoson vehicle https://www.nairaland.com/1893524/inside-innoson-auto-factory#26146310 Nigeria import finish material to assemble cars they don't manufacture, nissan motors import finish cars. They don't create jobs, since they only assemble imported car part |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by talktimi(m): 12:05pm On Feb 12, 2015 |
The automotive players asked for incentives, got the incentives and came into Nigeria to build/operate their plants. They haven't complained as far as I know so how come arm chair critics are complaining while the car manufacturers are not |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by asha80(m): 12:08pm On Feb 12, 2015 |
abu12:it is not demeaning for one to admit ones blindness |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Justcash(m): 12:11pm On Feb 12, 2015 |
abu12: They are actively being used on Nigerian roads. 3 Likes
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Re: APC Will Slash Tariffs On Imported Cars -osinbajo by RedArrow: 12:15pm On Feb 12, 2015 |
I don't usually exchange insult or abusive words with people. But you just went to the extreme. You can make your point without insulting people. In as much as i'm tempted to insult you, I chose to ignore you. Our responses to issues will tell whose "brain" is really not working very well. Sai Buhari/Osinbajo Chigold101: 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 12:22pm On Feb 12, 2015 |
Justcash: 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. 3 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by pedel: 12:26pm On Feb 12, 2015 |
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. Boss13: 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 12:37pm On Feb 12, 2015 |
pedel: U Av added another good dimension to this discuss. Even in those countries we enjoy comparing ourselves to, how many of would be buyers have the total cash to buy vehicles at a go without one sort of financing arrangements. What exactly is the minimum wage that u expect Nigerians to be buying cars instantly at the rate of 2.5 million naira and above cash down? 3 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by pedel: 12:38pm On Feb 12, 2015 |
God bless you. Nigeria deserves the people that governs them. Let them increase the tariff to 100% people will still buy tokunbo. How many civil servants can buy a brand new car at the current prices without finance facilities in place? They make policies without supporting structures in place. We will see what will happen to those companies and their created jobs if people don't patronise them. deemdeem: 1 Like |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Olaolufred(m): 12:54pm On Feb 12, 2015 |
atlwireles: 1. IF THERE IS ANY ASSEMBLY PLANT BEING BUILT, IT IS A WELLCOMED IDEA. BUT ARE YOU SAYING THEY SHOULD NOT COMPETE AT ALL WITH MARKET FORCE? WE SHOULD TURN IT TO MONOPOLY AGAIN? 2. MOST GOVERMENT OFFICES IN LAGOS AND MOST STREET LIGHTS IN SOME AREAS ARE BEING POWERED BY THOSE MODULE POWER STATIONS. THEY ARE 5 IN NUMBERS SO FAR. 3. POWER GENERATION AND DISTRIBUTION SHOULD BE LEFT TO STATES TO HANDLE, SO THAT PEOPLE CAN HOLD THEIR GOVERNORS MORE ACCOUNTABLE. THE CENTRE IS TOO FAR. 2 Likes |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Nobody: 1:02pm On Feb 12, 2015 |
It is stupid that a country like ours, which is in dire need of foreign direct investment would encourage policies that would shut out the inflow of the needed foreign investors in the country. This is what the APC is trying to achieve if we follow Osinbajo's statements. How will automobile manufacturing giants feel when they've signed an MoU with government with the aim setting up manufacturing plants in the country, with the government agreeing to making the automobile market a bit more comfortable for the manufacturers, Only for the government to renege on her agreement? It increases our political risk and we may find it very difficult to attract foreign investor in years to come. 2 Likes 1 Share |
Re: APC Will Slash Tariffs On Imported Cars -osinbajo by Justcash(m): 1:09pm On Feb 12, 2015 |
deemdeem: I deal on cars. Importation of cars does not have a spiraling effect on job creation as much as domestic manufacturing of cars. When you start to manufacture cars instead of importing them, it is like backward integration in job creation. Right from the point of production, jobs are being created. This includes supplies of foreign made components, technical aspect of production, marketing, sales, servicing and general administration. Then ofcourse, spiraling effects on outsourced services, medical personnel among others. Let's not forget that these cars can be exported. The process of exportation comes with its own spiraling effect on job creation. More still, organized servicing outfits will emerge all over the country to provide car servicing aids. Jobs are created by these servicing firms too. When you import cars, you shed the production burden, and foreign labour replaces local labour. The impact on job creation is minimal when compared with local production. Because anybody can import cars, qualified Nigerians that can work in the auto manufacturing industry are left jobless. The best they can do is to rely on their entrepreneurial abilities to become mechanics. The unemployment rate in Nigeria is high. It is foolhardy to rely on importation when products can be made at home for job creation. As long as the capacity has been established, it is important to create a means for these manufacturers to compete effectively with their global peers, even if it means being extremely protectionist. For the full benefits of local production to felt, competing foreign products must be made more expensive through tariff. This will encourage foreign firms to embark on foreign direct investment and their expertise will be gradually transferred to NIGERIANS. 2 Likes |
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