Following President Muhammadu Buhari ’s rejection to sign the Automotive Industry Bill, Oscar Odiboh, a lecturer at Covenant University Otta, Ogun State, says an estimated N2.1 trillion in local investments by local auto assemblers may be threatened.
Speaking further on the topic: “Zero Patronage, Zero Tariff and the Redefinition of Patriotism by Nigeria’s Automobile Industry,” at the 2019 training workshop of Nigeria
Auto Journalists Association (NAJA) in Lagos, Odiboh observed that resources so far deployed in the sector might go down the drain due to alleged refusal of the Federal Government to endorse the National Automotive Industry Development Plan (NAIDP).
The sector is strategic to economic growth and development, Odiboh said.
The Federal Government under the administration of former President Goodluck Jonathan had in October 2013 announced the concept of NAIDP as part of measures to stimulate investment in local vehicle production.
Pointing out that those who have started should be encouraged, government cannot force assembly plants into reality, Odiboh said.
The automotive consultant said, “Even some stakeholders are not comfortable with the policy and there have been too much ado in doing nothing. Nothing is working.”
He also advised the Federal Government to allow auto assembly plants to evolve: “Let the industry move on. Revolution is not by force. It starts with evolution. We must evolve to revolve. Let our auto industry evolve, then, it can revolve.”
He called on the Nigerian Customs Service (NCS) to increase tariff on used imported vehicles from 30 percent to 80 percent, reduce tariff on brand new imported vehicles from 70 percent to 30 percent as well as consider the introduction of zero percent tariff on locally CKD assembled vehicles.
The National Automotive Design and Development Council (NADDC), according to Odiboh, should restrict itself to design, development of infrastructure and campaigns on patronage of Made-in-nigeria vehicles.
