Vice President Prof. Yemi Osinbajo (SAN) has urged the National Automotive Design and Development Council to make out a comprehensive vehicle credit purchase scheme that would enable Nigerians to afford new vehicles.
Osinbajo said the policy should be detailed.
He said: “The Council bill is taking time but it should be made to work for those who cannot afford new vehicles.”
Speaking on Monday during a briefing by the Council in his office in Abuja, Prof. Osinbajo said he was concerned about the strategy for raising funds and pressure which the importation of used vehicles exert on foreign exchange.
Against the backdrop of the Council’s plan to develop the automotive industry through bring back vehicle assembly operations, under the National Automotive Industry Development Plan, the Vice President said the initiative is laudable and has the capacity to grow the automotive industry.
He further said there might be the need for a high tariff on used vehicles though he expressed concern about the effect it may have on Nigerians who cannot afford new cars and on transportation in general.
Also expressing concern about the spate of smuggling of used vehicles, which has impacted negatively on the economy, Osinbajo also urged the Council to work with other agencies such as the Nigeria Customs Service as well as develop a software that can check the menace.
He told the Council to put up a strong case for the credit purchase policy, the timing of the policy and to cushion the effect it may have on those who cannot afford new vehicles, while promising to take up the case with the Central Bank of Nigeria.
Earlier, the Director General of the National Automotive Design and Development Council, Engr. Aminu Jalal, said the objective of the policy is to “ensure the revival, development and growth of the Nigerian Automotive industry, using local human and material resources”.
Briefing Osinbajo further, Jalal said one of the fiscal provisions of the National Automative Development Policy is that it will increase customs revenue without increase in prices of assembled vehicles and make investment attractive and convenient.
He noted that the levy on used vehicles is to be applied gradually, starting with those aged up to two years as three month to six month old cars are imported as used vehicles.
While expressing optimism that smuggling will soon be curtailed, he said a programme is being put in place, which will impose protective tariff and levy as well as an electronic online solution to capture the 17-digit vehicle identification number obtained by the Nigeria Customs Service upon payment of duties.
Jalal also asked the government to endorse the policy for full implementation and the realization of massive employment, technological development as well as its intervention in the transport sector.