Business
Tariff: Peugeot says many local assembly plants will shut down
- Nigeria to import N3tn used automobiles this year
Many vehicle assembly plants in Nigeria including Peugeot Automobile Nigeria (PAN) will shut down their operations this year following a recent reduction in import tariff on vehicles by the Federal Government.
Chairman of PAN, Ahmed Wadada Aliyu, who stated this, also predicted that Nigeria would import used cars and motorcycles worth N3 trillion this year as a result of the new policy.
Aliyu, who is a former member of the House of Representatives, condemned the tariff reduction on imported vehicles, describing it as a policy somersault.
The policy was based on the recommendations of the Automobile Standing Committee set up by the Federal Government through the Bureau of Public Enterprises (BPE) to examine factors hindering the growth of the automotive sector.
Ahmed, who spoke on Tuesday in Abuja during a media parley on ‘The tariff regime for automobile assembly plant in the 2020 Finance Bill’, accused the Comptroller-General of Customs, Col. Hameed Ali (rtd), of succumbing to the lobby of vehicle dealers with no matching investments in local vehicle assembly.
Aliyu expressed concern that the new policy would affect PAN Kaduna Limited, which had already secured a financing of $150 million over the next three years for its operations.
He added that the tariff reduction would mean the imminent closure of PAN and other auto assembly plants.
“The tariff portion of the Finance Bill was stepped down. But to our dismay, it was smuggled again into the Finance Bill and subsequently approved,” he stated.
He accused the Customs boss of abusing the direct access that he has to the presidency.
He said, “The Nigeria Ports Authority revealed in December 2020 that 13 vessels off-loaded used vehicles at the terminals. In 2020, the country imported used vehicles and motorcycles valued at N1.28 trillion.
“It means in 2021, Nigeria is likely to go berserk and triple the amount to N3 trillion. Forty per cent of the budget on importation of all manners of used cars is a direct consequence of the tariff reduction.
“The comptroller general intends to flood Nigeria with ‘Tokunboh’ vehicles and ensure the closure of all assembly plants whereas the assembly plants have put in place a car financing scheme for Nigerians to own brand new vehicles at affordable rates.
“We strongly believe the comptroller general succumbed to the lobby of ‘Tokunboh’ dealers who are glorified car dealers with no matching investments in local vehicle assembly, and without linkages and value chain components that can precipitate long term industrial growth of Nigerian economy.
“PAN Kaduna Limited has just been acquired and has already secured a financing of $150 million over the next three years, and the implication of this review means the imminent closure of PAN and other auto assembly plants due to misguided recommendations by the comptroller general.
“We categorically state that this tariff review will become more detrimental to the long-term competitiveness that the automotive industry must achieve if it is to play any dominant role in Africa continental free trade area.”
But the Nigeria Customs Service (NCS) dismissed the PAN chairman’s allegation, saying that Nigerians are happy with the new policy.
Public Relations Officer of the NCS, Mr Joseph Attah, said the position of the NCS was well known on the matter, adding that Nigerians were happy with the reduction of tariff on imported vehicles.
“Our position is well known and Nigerians are happy. Anyone can criticise our position. What you then ask yourself is on which grounds. I am not a businessman, but when people criticise based on their interests, I don’t know what you want me to say. Our position is well known and anyone can criticise us,” he stated.
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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