New Clearing Rate For Tokunbo Cars Begins March 2014

A new clearing rate for fairly used cars (tokunbo) cars would commence in March 2014, this follows a February 28, 2014 deadline given to importers of used vehicles to clear them at old rates provided they had opened a letter of credit for the vehicles before October 3, 2013.

Although the National Automotive Council (NAC) did not disclose the  details  of the new tariff structure for the  country’s automotive industry, Director –General  of the Council, Aminu Jalal, who  cleared the air on the  new automotive policy announced by the Minister of Industry, Trade and Investment, Mr Olusegun Aganga, after a Federal Executive Council (FEC) meeting in Abuja on Wednesday,  however said that the  policy would not result in the banning of the importation of vehicles in Nigeria,  but  would focus  on promoting investments in affordable made-in-Nigeria vehicles that would   in future minimise the importation of vehicles, stressing  that  the policy  has incorporated mitigation measures to  reduce any price rises when it finally gains momentum.

Jalal disclosed that many international automotive manufacturers, in particular, Toyota, Nissan, Renault and GM, had indicated interest to invest in Nigeria following the development of the policy.

“Nissan, Toyota and others are now conducting a feasibility study on vehicle assembly in Nigeria, assuming that a comprehensive automotive development plan will be in place. Accordingly, a holistic, comprehensive and long-term automotive development plan was therefore developed and implementation has commenced,” he revealed.

He said the elements of the plan, which would ensure competitiveness and increase productivity of the sector, include the establishment of automotive supplier parks and clusters, skills development, standards, investment promotion, market development and anti-smuggling measures.

Jalal said  the policy  which would be subject to periodic reviews, would  enable the automotive industry achieve its potential for the Nigerian economy, adding that it would  also revitalise and boost the existing Nigerian automotive industry.

“At full capacity, the Nigerian automotive industry  has the potential  to create 70,000 skilled and semi-skilled jobs  along with 210,000 indirect jobs in the SMEs that will supply the assembly plants.490,000 other jobs will also be created in the  raw materials supply industries,” he noted.


Source: Leadership