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PAN Chairman Says Govt Policies Have Stagnated Nigeria’s Automobile Industry
Peugeot Automobile Nigeria (PAN) Chairman Aliyu Wadada says government’s policies have stagnated Nigeria’s Automobile Industry.
The Chairman of Peugeot Automobile Nigeria (PAN) Aliyu Wadada says government’s policies have stagnated Nigeria’s Automobile Industry. He noted that it has not gone beyond where it is.
This was revealed in an interview with Channels Television. Wadada explained that the policies have served as impediment to the growth of the Nigerian automobile industry.
“The automobile sector in Nigeria should have gone way beyond where it is. It is shameful enough that we have still haven’t gotten to manufacturing which is greatly about the environment that we operate in,” Wadada said.
He also reacted to the Finance Act 2020 and the reduction in the tariff on imported vehicles recently discussed on Sunrise Daily by the Minister of Finance, Budget, and National Planning, Zainab Ahmed.
“The Minister said initially there was 35% tariff and 35% levy which now all together makes 70%. With the reduction in the Finance Act 2020, it now comes to 40% and she said 40% is good enough for the local assembly plants to thrive or develop because it gives a differential of 30%.
“That 30% has always been there even before this policy but it never attracted investors because it is not good enough for investors to be attracted
“So that 40% differential is not good enough for local assembly plants to develop,” Wadada said.
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He added that the reduction in the tariff on imported vehicles is detrimental to the growth and development of local assembly plants in the country. He then urged the Federal Government to make policies that will encourage the growth of local assembly plants.
“If the environment is made enabling enough for local assembly plants to proliferate results would emerge. This means we will be able to stand the challenge,” Wadada added.
On the Finance Act 2020, Wadada also pointed that the Finance Act is silent about import duties on SKD vehicles.
“None of the local plants do CKD (complete knocked down) vehicles all because of policy. The SKD that is being struggled upon is now going to be killed. This is because the Finance Act on commercial vehicles is now being – is reducing the tariff from 35% TO 5% and the tariff on SKD (commercial) is 5%.
“The Finance Bill is silent about what SKD will pay on commercial vehicles today,” he said.
Wadada, therefore, said the Minister of Finance should come on air, “and tell us what happens to the SKD that have been imported and are on the high seas. When they come in, what is the tariff to be paid on them?
“Because the tariff of commercial vehicles is 10% before the introduction of Finance Act. Meanwhile, the finance Act is not even telling us anything about the tariff.”
Credit : Channels TV
