Reps endorse tariff increase on imported cars

The House of Representatives Committee on
Industry has endorsed the new automotive
policy of the Federal Government, which seeks
to increase the tariff on imported cars.
This is coming as the Minister of Industry,
Trade and Investment, Mr. Olusegun Aganga,
said the potential for the automobile industry
plan was to save as much as N550bn.
The Chairman, House Committee on Industry,
Mr. Mohammed Onawo, said the
implementation of the policy would attract
new investments to the sector, protect local
automotive manufacturers and create
employment.
Onawo, in a statement made available to our
correspondent on Thursday in Abuja by the
Federal Ministry of Industry, Trade and
Investment, said increasing the tariff on
imported cars would encourage the businesses
of local manufacturers.
“The House Committee on Industry is very
insistent on the fact that anybody who is
going to import a complete car is going to pay
a higher tariff than somebody who is going to
manufacture here because that is the only
way that you will be able to protect who is
going to create employment here,” he was
quoted as saying.
Onawo, who was accompanied by 12 other
members of the committee on an oversight
visit to the ministry, said he was pleased to
hear about the new measures.
He added, “Of particular interest to me is how
to use tariff to protect local manufacturers.
One of the major challenges facing those that
are manufacturing cars in Nigeria is the tariff
structure.
“If somebody who is importing a complete
car is paying less than somebody who is
manufacturing, then you are not encouraging
the person who is manufacturing. With the
new measures being put in place by the
ministry, I am sure it will protect those
investors who are willing to come to Nigeria
and invest by assembling or manufacturing
vehicles here.”
In his response, Aganga said the ministry
would continue to partner stakeholders in the
implementation of its Industrial Revolution
Plan.
He stated that the new automotive policy
would have a catalytic effect of fast-tracking
industrialisation, creating jobs and generating
wealth for the country.
The minister said, “The new measures to
transform the automotive sector is part of
our industrial revolution plan, which is
integrated, holistic and based on areas where
we have comparative and competitive
advantages as a country.
“Likewise, the potential for Nigeria’s
automobile industry plan is to save as much
as N550bn ($3.5bn) through the reduction of
imports. We also have the regional export
potential into the West and Central African
market, coupled with the availability of a
large and trainable workforce.
“Recognising the strategic and catalytic effects
of the automotive industry in
industrialisation, job creation and wealth
formation, among others, emerging
economies like Brazil, China, Malaysia, India,
Iran, Indonesia, Thailand and South Africa
took deliberate steps to develop their
automotive industry between the 1960s and
the 1980s. Nigeria started about the same
time in the 1970s. These countries have,
however, developed well-advanced automotive
industries now, in contrast to Nigeria.”