Investors Await New Tariff To Build Auto Assembly Plants

The Director General,
National Automotive Council (NAC)  Mr Aminu Jalal has said new investors were waiting for increase in tariff on imported vehicles before building their assembly plants.
Jalal told newsmen in Abuja that raising the tariff as planned under the new auto policy would discourage importation and boost investors’ confidence in the government’s automobile programme.
According to him, except the new tariff regime comes into force in July in line with the new auto policy, the investors will not be encouraged to commence the building of their assembly plants.
Jalal allayed the fears of Nigerians, saying the current stock of imported vehicles across the country was enough to meet local demands until the assembly plants began operation.
According to him, “unless the hike in tariff starts, no company is ready to invest hundreds of millions of dollars in setting up assembly plants in the country. I know people will say let them come, set up their plants and produce before the new tariff kicks in but the truth is they will not do it.
“Except the new tariff starts, the auto policy is just another government promise and no investor will take action on promise because it will mean we are not serious. They are currently making all the preparations, waiting for the new tariff regime and until that is done, they will not believe us,’’ he said.
He explained that under the new tariff, which takes effect in July, imported cars will attract 35 per cent duty and 35 per cent levy.
Companies involved in assembly operations in the country will only pay 35 per cent duty for fully built units, and zero duty for Completely Knocked Down parts to assemble in the country.
Imported commercial vehicles will attract only 35 per cent duty with zero levy, while companies with plants in the country will pay only 20 per cent duty for their commercial vehicle imports.
Stakeholders have, however, cautioned the Federal Government against the planned tariff hike, saying the policy will deny many Nigerians access to affordable cars, especially the fairly used ones.