The House of Representatives Committee on Industry has aligned with the Federal Government’s policy to increase tariffs on imported vehicles.
The Chairman, House Committee on Industry, Mr. Mohammed Onawo said the policy would increase employment, encourage local production and eliminate billions worth of FOREX spending for imports.
“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,” Onawo said in a statement.
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.”
Speaking on the development, the Honourable Minister for Trade and Investment, Olusegun Aganga said his ministry would continue to partner stakeholders in it’s Industrial Revolution Plan.
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.”
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