“While you have government investing with policy, some of the infrastructure and intellectual property,” he said.
Auto
Confusion persists as Customs confirms vehicle import duty now 20%
Importers of new and used vehicles are now paying 20 per cent as duty to the coffers of the government, the Nigeria Customs Service has said.
The confirmation came on Monday after importers and clearing agents had cried out that they were still paying the old rate of 35 per cent as import duty even when the NCS had announced the slash.
In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty was for both used and new imported vehicles.
In a statement signed by spokesman for the Customs, Timi Bomodi, the agency said that the 20 per cent duty is for both used and new imported vehicles.
The statement read in part, “On Friday, the 1st of April 2022, the Nigeria Customs Service migrated from the old version of the ECOWAS Common External Tariff (2017- 2021) to the new version (2022- 2026). This is in line with the World Customs Organisation (WCO) five years review of the nomenclature. The contracting parties are expected to adopt the review based on regional considerations and national economic policy.
“The nation has adopted all tariff lines with few adjustments in the extant CET. As allowed for in Annex II of the 2022-2026 CET edition, and in line with the Finance Act and the National Automotive policy, NCS has retained a duty rate of 20 per cent for used vehicles as was transmitted by ECOWAS with a NAC levy of 15 per cent. New vehicles will also pay a duty of 20 per cent with a NAC levy of 20 per cent as directed in the Federal Ministry of Finance letter ref. no. HMF BNP/NCS/CET/4/2022 of 7th April 2022.
“It is instructive to note that domestic fiscal policy on the importation of motor vehicles and other items is targeted at growing the local economy in these sectors. The focus of NCS is on the implementation of these policies in the hope that it achieves its desired objectives in line with the National Automotive Policy and other fiscal policies of the government.
“The NCS has also activated the use of Chapters 98 and 99 of the CET, in accordance with WCO recommendation for national use by contracting parties, which in our case promotes industrialisation through sectoral and sub-sectoral incentives for members targeted at economic growth, enhancement of security and minimized consumption of unwholesome goods.
“It should also be noted that the automotive industry, bonafide assemblers, manufacturers of auto spare parts and other local manufacturers enhance technology transfer and skill acquisition, create jobs and increase per capita income.
“In Chapter 98 of the current CET – bonafide assemblers importing Completely Knocked Down (CKD) and Semi Knocked Down (SKD) are to enjoy a concession of 0% and 10% duty rate respectively. While within ECOWAS, duty rate for the same items are five per cent and 10 per cent respectively.”
But the Federal Government in the draft 2020 Finance Bill had proposed a reduction in duties on tractors and vehicles for transportation of goods from 35 per cent to 10 per cent while the duties on vehicles for transportation of persons (cars) were reduced from 35 to five per cent.
This led to was an uproar from investors in the nation’s auto manufacturing sector.
Vice President Yemi dismissed the fear, saying the decision to slash duty on imported vehicles was not an attempt by the government to kill the nation’s automobile manufacturing industry but to reduce the cost of transportation in the face of growing economic challenges.
He also stressed that it was to meet the huge vehicle need of the country, put at an annual demand of 720,000 against 14,000 local production capacities.
Auto
CNG conversion centres now 170, FG targets 200 Dec 31
CNG conversion centres now 170, FG targets 200 Dec 31
The Presidential Compressed Natural Gas Initiative (P-CNGI) on Wednesday announced that the CNG conversion centres in the country are now 170.
It was upbeat that the 170 CNG conversion centres in Nigeria would increase to 200 at the end of December 2024.
The centres hit 170 with the commissioning of Portland Gas Conversion centres in Kado, Abuja.
Speaking with reporters, the PCNGI Chief Executive, Engr. Michael Oluwagbemi, said the P-CNGI which has doubled its target for 2024, is hopeful of hitting 500 conversion centres next year.
His words: “Before the end of this year, I promise in the next two weeks, we will get to 200. We are already looking for and certifying at least an additional 35 to 40 on our record.
“I believe we will get to 40 at the end of this year. And that is double our target. You remember this time last year, I told you our target was 100 and now 200.
“Next year, we have set a target of 500 for us and I believe we will blow.”
He recalled that from the seven conversion centres of 2023, there are now 170 centres in Nigeria.
According to him, all the conversion centres are owned by private-sector investors.
“We went from seven conventional centres, that with these now, I easily would say we are around 170.
“So today, from seven to 170, there is not a single one of those that were built by the Federal Government of Nigeria,” he said.
He urged Portland Gas Limited to increase its working hours from 24 to the present 24 hours.
Meanwhile, the Portland Gas Limited, Chief Executive Officer, Engr. Folajimi Mohammed said the workshop which opens 12 hours daily, can convert a car within one hour.
READ ALSO:
- NAFDAC destroys N5bn fake, expired products in Aba
- Speaker Abbas to Tinubu: Your reforms have disrupted status quo
- Abuja demolition: Soldiers attack FCTA officials, seize vehicles
He said it is a full state-of-the-art centre, comprising the mechanical, electrical, calibration, and of course which cannot be done without gas.
He said: “So what we do here is a Turkey solution, where from the conversion part of it, you can make sure that when you leave here within an hour, thereabouts, you are able to make sure that you have a fully converted CNG car.
“And when I mean fully converted CNG car, I mean, it is still a hybrid. You can have the option to switch from petrol to gas where you want to.”
According to him, the tanks that are presently installed in the vehicles are durable for 20 years.
He said since the infrastructure is limited in the country, it is advisable to convert the vehicles in a manner they can use other fuels in addition to CNG.
Mohammed said, “We know the gas infrastructure is just about to improve. “Well, for now, what we have, the limited availability of the infrastructure, by making sure that you don’t do 100% conversion. I can always switch to petrol in the event of any emergencies.”
He said being methane, the gas is very safe as it is lighter than air.
Besides, Oluwagbemi said a free interstate transportation will be provided in the Federal Capital Territory between during the Yuletide.
According to him, six buses will be added to the fleet.
He said, “You know in Abuja today we have 16 buses running Gwagwalada to Keffi and Nyanya as well as in Nigeria that project is already ongoing and it will be expanded to interstate this week.
“We are going to put additional six buses to run interstate here in Abuja and neighbouring cities. We are just providing free transportation programme during the yuletide period.”
Speaking, the National Agency for Science and Engineering Infrastructure (NASENI) Executive Vice Chairman, Khalil Suleiman Halilu recalled that the CNG journey started a long time ago.
He added that the CNG of Portland is a first of its kind in terms of partnership and private sector.
He said in the partnership, the government provides the policy, infrastructure, and intellectual property.
Auto
Coscharis, Toyota, Globe, Weststar, CFAO, others that win big at NAJA Auto Awards
Coscharis, Toyota, Globe, Weststar, CFAO, others that win big at NAJA Auto Awards
Globe Motors, Coscharis Motors, Toyota Nigeria, CFAO, Weststar Associates and Lanre Shittu (LSM) are among big winners at the 2024 NAJA (Nigerian Automotive Journalists Association) Auto Awards.
The prestigious event, which held on Wednesday December 11 at Oriental Hotel, Victoria Island, Lagos recognized various categories within the industry, ranging from vehicle innovation to service excellence.
As earlier announced Mikano Motors’ Changan CS55 beat Toyota Corolla and Kia Rio to win the coveted 2024 car-of-the-year prize.
Globe Motors emerged as the Most Resilient Company of the Year, while Coscharis Motors bagged the Multi-Luxury Brand of the Year along with the luxury SUV of the year with Range Rover Autobiography. Toyota Nigeria Limited (TNL) and MD/CEO of Lanre Shittu Motors (LSM) were honoured as Auto Company of the Decade and Auto Personality of the Year respectively.
Also, CFAO won the Outstanding After-Sale Service, Product Launches of the Year with the Toyota Land Cruiser Prado and Suzuki Vitara, and the Most Enterprising Auto Company, while Chief Chidi Anyaegbu MFR (Founder, Chisco Motors) was recognized as the Transport icon of the Year; Mrs. Karima Okunola of Mikano Motors bagged the Auto Marketing Manager of the Year.
The companies were lauded for their commitment to providing quality vehicles and top-notch aftersales services, which have contributed to their solid reputation in the Nigerian auto market over the years.
Other notable winners included Innoson Vehicle Manufacturing, which was celebrated for its pioneering role in local vehicle production; Nord took home CNG-powered mini bus brand, and A9 launch recognition.
Weststar’s Mercedes-Benz was declared luxury brand of the year and the S-Class won luxury car of the year.
Carloha with its handling of Chery was adjudged the most innovative company of the year, just as the Chery Tiggo 8 Pro launch received a recognition.
While Dangote Sinotruk won the heavy duty truck manufacturer of the year, Lanre Shittu’s JAC was again awarded the heavy duty truck of the year. Taiwo Shittu, MD of the LSM emerged Auto Personality of the Year. His later father and founder of the company received a posthumous award.
RT Briscoe bagged the workshop of the year award; Dana Motors’ Kia Sonet won the best compact SUV prize, and the mini bus assembler of the year went to Jet System.
In his speech, Chairman of NAJA, Mike Ochonma, said, “This year’s NAJA Auto Awards highlights not just the achievements of the big names in the industry, but also the rising stars who are shaping the future of Nigeria’s automotive landscape.”
Auto
Nigeria’s auto industry in limbo over policy delay – LCCI sectoral head
Nigeria’s auto industry in limbo over policy delay – LCCI sectoral head
Nigeria’s automotive industry is in limbo due to prolonged delay in enacting the required law to give investors the right direction.
Head of the Auto Sectoral Group of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Kunle Jaiyesinmi, stated this, noting that the industry was being allowed to stagnate, making it difficult to galvanise the overall development of the Nigerian economy
Jaiyesinmi who is Deputy Managing Director of CFAO Motors, spoke in Lagos on the sidelines of the 2024 Nigeria Auto Industry Awards organised by the Nigeria Auto Journalists Association (NAJA).
He said, “For now, we are in limbo. We don’t know what is happening to the (auto industry) policy; whether it’s with the Executive or it has gone to the National Assembly. We don’t have information on the stage that the policy is. I think NADDC is coming up with a stakeholders’ meeting maybe they would give us a very detailed information on the policy.”
In his assessment of the performance of the business this year, he lamented that the macroeconomic challenges including the high exchange rates and inflation were adversely affecting vehicle salesmmm
He said, “2024 has provided a topsy-turvy ride looking at the state of the economy. The purchasing power has been so much eroded (due to) the depreciation of the naira (the exchange rate).
“Prices have risen to a level that most private consumers cannot really afford it (new car). You notice that the major corporates are really suffering. You can imagine how much they lost in terms of exchange rate.
“So that has really impacted the procurement of new vehicles… We have more of automobile maintenance service rather than new sales.
“If you look at the market figure, it has so much reduced compared to what we had been having when the exchange rate was around N450, N480. So it’s not been a very good year for automobile business.
Jaiyesinmi also spoke on the high interest, which is over 33%; as well the recently announced government-back N20 billion auto finance.
He said, “Automobile loan is a no-go area for consumers. It’s a bit tough now. Reliance is on government now and it’s not everybody that can do government business.
“We are just looking at 2025 to be a better year going by the appreciation of the naira in recent times. We are just praying that it can be sustained. If we are able to get that into the new year maybe vehicle prices would reduce and based on the government providing very good enabling environment for businesses to thrive.”
Speaking on the N20bn auto finance scheme by the credit corporation (CreditCorp), he said, “The N20bn scheme is even belated because when the Auto Policy started about 10 years ago, the 35 per cent tariff being charged on fully built vehicles, the understanding we had then was that part of it would go to the auto financing and the other part would go to automobile assemblers’ facility.
“In 10 years, nothing happened and we know how much has been collected by the Federal Government from that levy.
“So N20bn is a paltry amount and the scheme is coming up a bit late. Looking at the local assembling, how many assemblers are we really having in Nigeria? Those of us that started eight, nine years ago, almost all of us have really closed shop.”
He however expressed optimism that the new Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, would turn things around.
“I believe she should be able to drive this policy. She should try as much as possible to run away from the era of deceit. She should face reality and I believe as a realist, her tenure would portend a good tiding for the automobile business,” he said.
-
Railway10 hours agoLagos Rail Mass Transit part of FG free train ride – NRC
-
metro1 day agoCourt stops customs from seizing imported rice in open market
-
metro2 days agoFG transfers electricity market regulatory oversight in Lagos to LASERC
-
metro2 days agoAfe Babalola: Court grants Dele Farotimi bail, barred from media interviews
-
metro2 days agoIbadan stampede: Tinubu orders probe as death toll hits 40
-
News2 days agoAdebayo Ogunlesi, 2 other Nigerians make Forbes 50 wealthiest Black Americans list 2024
-
metro3 days agoAbuja demolition: Soldiers attack FCTA officials, seize vehicles
-
metro21 hours agoIbadan stampede: Ooni reacts after arrest of ex-wife