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Nigeria Spends N1.05trn On Vehicles Importation

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The National Automo
tive Council (NAC) says Nigeria spent about N1.05 trillion on the importation of vehicles and spare parts in 2012.
The  Director-General of the Council, Alhaji Aminu Jalal, made the disclosure last Tuesday in Kaduna, when he led the newly inaugurated board members of the organisation on a facility visit to the Peugeot Automobile of Nigeria (PAN).
Jalal said that the development had resulted in low patronage for local car assembly plants, causing monumental losses to the country in terms of income.
“I want to tell you that last year alone, this country spent N550 billion in the importation of cars, buses and trucks. But that does not include tractors, and military vehicles.
“Again, we also spent about N500 billion on vehicle spare parts. In fact, on tyres alone, we spent N150 billion. And this year, the same trend is showing. This is not good for our country.”
The director general, however, expressed confidence that the new automotive policy recently approved by the Federal Executive Council would reverse the trend.
“With the new policy, we are going to support our car plants to produce very standard cars at globally competitive prices. This is going to greatly add to our local content.
“ For example, to assemble a car here, you need about 2,500 parts. If many cars are produced and sold here, then it would encourage the local manufacturing of these parts, creating more wealth here and driving down the cost of the vehicles.
“ By the time we start implementing this policy, you will see a very positive change in just six months.”
The Managing Director of PAN, Alhaji Ibrahim Boyi, said that the company production had dwindled greatly.
“PAN, which once produced 90,000 cars in 1985, and had about 4,000 permanent employees, now produces about 3000 vehicles annually with its existing 250 members of staff,” he said.
Boyi attributed the problem of the company to the influx of second hand vehicles into the country, which made it difficult for local manufacturers to access the market.
He, therefore, called for a total ban on the importation of second hand cars “because that is what will make the local industry and the economy to grow.
“My appeal to the council is to ensure a thorough implementation of the new automotive policy which will enable the organisation achieve its aims and objectives,” Boyi said.
However, the Chairman, Board of NAC, Alhaji Abdulkadir Saleh,  promised that the council would ensure strict implementation of the new automobile policy.
According to him, the new policy will enforce government patronage of  locally assembled cars that are certified to be of global standard.

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Maritime

FG Launches National Single Window Steering Committee

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President Bola Ahmed Tinubu has said the decision of his administration to embark on a National Single Window (NSW) platform is to boost the country’s Ease of Doing Business Index as rated by the World Bank.
The NSW is an electronic portal that links all agencies and operators within the country’s supply chain to an integrated platform, which is to be domiciled at the Federal Inland Revenue Service (FIRS).
Membership of the steering committee is drawn from the Nigerian Ports Authority (NPA), Nigeria Customs Service (NCS), Federal Airports Authority of Nigeria, (FAAN), Federal Inland Revenue Service, (FIRS), National Agency for Food and Drug Administration and Control, (NAFDAC), Nigerian Maritime Administration and Safety Agency, (NIMASA), Central Bank of Nigeria (CBN), Standards Organisation of Nigeria (SON), and some key private sector operators, which include importers, exporters, shipping lines, freight agents and banks.
Speaking while inaugurating the steering committee for the project at the Presidential Villa, Abuja, the President also said the platform is aimed at eliminating all forms of encumbrances to trade and commerce with a view to optimising revenue generation and ultimately boost the inflow of both local and foreign direct investment into the country.
The President, who decried the bottlenecks that characterise the country’s import, export and other supply chain activities, noted that the project is another milestone by his administration, saying the project would boost investment inflow by removing all forms of trade barriers in the import and export value chain.
“Nigeria’s import and export processes are bureaucratic, which lead to delays at the seaports. Such inefficiencies have adverse impacts on local businesses in the country and serve as potential impediment for foreign direct investments.
“To eliminate these challenges, today, we are launching the National Single Window project.
“The National Single Window Project is intended to enhance revenue generation through imports and exports and accelerate economic activities in the country.
“This project is a bold initiative to simplify and streamline our import and export clearance processes by eliminating bottlenecks, and harnessing best-in-class technology. This will result in reduced costs of doing business and position us to attract more foreign investment.
“The National Single Window Project will consist of four key pillars, namely: Single Window for Imports, Single Window for Exports, Port Community System and Scanning Services across our sea, air and land borders.
“The Project is not merely a technological advancement, but a strategic initiative to increase revenue generation by consolidating import and export related procedures into a unified electronic platform.
“The platform will serve as a single portal for the submission and approval of all import and export related documents, as well as a centralised payment system. It will be integrated with the various systems in the Ministries, Departments and Agencies (MDAs) involved in the import and export processes.
“The National Single Window project is a top priority for this Administration. As a result, I am directing all relevant Ministries, Departments and Agencies working on similar systems or information technology implementation projects to stop doing so in silos but align and consolidate such projects under the National Single Window Project’s scope.
“Today, I am also inaugurating the National Single Window project steering committee. The primary objectives of the Steering Committee are to provide support, oversight, strategic direction, and guidance to ensure the effective implementation of the project.
“You are entrusted with the responsibility of aligning this project with this government’s revenue enhancement objectives, setting the stage for a more efficient and responsive economy.
“I expect nothing short of excellence from this committee. You are the driving force behind the success of this crucial project, and your commitment and dedication will determine its outcome.
“Our collective effort will shape this project and play a key role in shaping the future of trade and commerce in Nigeria. I urge you to approach this task with a sense of purpose, unity, and a shared commitment for the betterment of our nation”, the President said.
Meanwhile, Chairman of FIRS, Zacch Adedeji, who also spoke at the event, thanked President Tinubu for the project and approving FIRS and the Nigeria Sovereign Investment Authority (NSIA) as the project’s implementing agencies and financial managers.
Adedeji said the project aligns with the President’s commitment to stimulating Nigeria’s economy through enhanced trade facilitation and a bold step towards realising the country’s immense economic potential.
“As we strive towards achieving sustainable economic growth, we must embrace high-impact projects such as the National Single Window. By simplifying the government trade compliance process through a cutting-edge digital platform, we will unlock a myriad of economic benefits.
“This initiative will serve as a catalyst for achieving an average Gross Domestic Project (GDP) growth rate of seven per cent annually, propelling Nigeria to new heights of prosperity. The National Single Window is not just a technological advancement; it is the gateway to a more connected, efficient, and transparent system.
“By integrating our seaports, government agencies, and key stakeholders, we will create a seamless ecosystem that facilitates trade, saves time for businesses, and opens up a world of opportunities.
“From providing access to education and healthcare to enabling small businesses to reach global markets, digital connectivity is the key to unlocking Nigeria’s true potential.
“The heavy costs, delays, and inefficiencies at our ports has been a constant burden. It is estimated that a staggering $4 billion annually is lost due to these inefficiencies.
“By addressing revenue leakage prevention and facilitating effective trade, we will reclaim these lost resources and channel them towards the betterment of our society.
“Steering Committee, National Single Window 2 Paperless trade alone is projected to bring an annual economic benefit of around $2.7 billion; a testament to the transformative power of this initiative.
“The success stories of countries that have embraced Single Window systems are evident. Singapore, Korea, Kenya and Saudi Arabia have all witnessed significant improvements in trade efficiency after implementing similar initiatives. It is now Nigeria’s turn to join the ranks of these progressive nations and reap the rewards of a streamlined, digitised trade environment.
“The National Single Window is not just about facilitating trade, it is also a powerful tool for expanding our tax base and capturing the informal e-Commerce sector. By providing a unified, modern digital platform for expeditious paperless cargo clearance and logistics, we will bring more businesses into the formal economy, ensuring that everyone contributes their fair share to our nation’s development.
“Moreover, by linking the Nigerian National Single Window with other African nations, we will expedite cargo movement and optimise intra-Africa trade.
“This will position Nigeria as a leader in regional trade facilitation, fostering stronger economic ties with our neighbors and creating new opportunities for growth and collaboration.
“The current international trade environment is complex, involving disparate systems and requiring an average of 40 documents per transaction. Nigeria’s lack of a comprehensive trade facilitation system has led to bottlenecks, corruption, port delays, decreased revenue, and a negative business environment. The National Single Window is a decisive response to these challenges.

“By improving trade facilitation, revenue generation, economic growth, transparency, security, and streamlined processes, we will transform Nigeria into a global trade powerhouse”, the FIRS boss explained.

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Maritime

NPA Secures $700m Citibank Loan For Tin Can, Apapa Ports Rehabilitation 

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In a bid to rehabilitate ports across the country, the Nigerian Ports Authority NPA has secured a $700million loan from Citibank to revamp Tin Can and Apapa Ports.
Speaking during the signing of a mandate letter with Citibank Nigeria in Lagos,  Managing Director, NPA, Mohammed Bello-Koko, said the agency negotiated a loan of $700million from the Citibank to be funded by the UK Export Finance (UKEF), an export credit agency, to rehabilitate the Apapa and Tin-Can Island ports, Lagos.
He said NPA has opened discussion with another funding agency to secure financing for upgrading of the Eastern Ports including Calabar, Warri, Onne and Rivers Ports, as well as the reconstruction of Escravos breakwater.
Bello-Koko said the mandate letter would be sent to Debt Management Office for final review and approval.
The funds, he continued, are ready and the reconstruction of the Lagos ports will start soon, as the NPA perfects plans to sign another mandate letter for the upgrading of the Eastern ports in about a month.
“In the last two years, NPA has realised the need for us to rehabilitate and reconstruct the ports all over the country.
“We have been having discussions with multilateral funding agencies who have sent various proposals that we have reviewed.
“What we did is to further discussion with interested parties and we realised it is better to separate the ports in Lagos from the ports in the East, and we are in discussion with another funding agencies to fund the construction of ports outside Lagos”, he stated.
The NPA boss further said the Citibank facility was the cheapest for Nigeria because it came with affordable interest rate.

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Maritime

Fall Off Container Crushes Woman To Death

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Tragedy struck on Friday, when a fully loaded 40ft container fell from a Mack truck and crushed a woman to death along Lagos, Ibadan Expressway.
The Tide gathered  that the Mack truck was on high speed when the incident occurred around NNPC inward Alapere, Ogudu, along Lagos-Ibadan Expressway.
A statement made available to our correspondent in Lagos by the Director, Public Affairs and Enlightment Department of Lagos State traffic Management Authority (LASTMA), Mr. Adebayo Taofiq, said a fully loaded 40ft Mack articulated truck fell on a Nissan car with registration number ABJ 692BG and instantly killed a woman at the rear of the car, while the car driver survived unhurt with the support of LASTMA officials.
Taofiq confirmed that the driver of the Mack articulated truck with his motor-boy ran away immediately the fatal accident occurred.
He said, according to preliminary investigation, the truck while on a high speed lost control as a result of a brake failure and rammed into a moving Nissan car on motion by N.N.P.C inward Alapere, Ogudu, along Lagos-Ibadan Expressway, Lagos.
The rescue agencies at the scene of the crash were the LASEMA, Lagos State Ambulance Service (LASAMBUS), Lagos State Fire and Rescue Service and the Police.
Also at the accident scene were the LASTMA General Manager, Mr. Olalekan Bakare-Oki, LASTMA Director of Traffic Incidents, Event Monitoring, Enforcement and Compliance, Mr. Hakeem Adeosun, and the LASTMA rescue team.
General Manager of LASTMA, Mr. Olalekan Bakare Oki, however, warned motoring public, particularly truck drivers, to stop over speeding and ensure their vehicles are properly checked, including the braking system, before embarking on any journey within or outside the State.
The incident attracted passers-by, who thronged the scene lamenting the unfortunate incident, accusing men of the ports task force of negligence.

 

By: Nkpemenyie Mcdominic, Lagos

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