LCCI faults Customs frequent reviews of import duties – Newstrends
Connect with us

Auto

LCCI faults Customs frequent reviews of import duties

Published

on

LCCI faults Customs frequent reviews of import duties

…suggests measures to stimulate auto industry growth

 

President of the Lagos Chamber of Commerce and Industry, Dr. Michael Olawale-Cole, says government’s policy inconsistency is stunting the growth of automotive industry in Nigeria.
He particularly faulted frequent reviews of import duties by the Nigeria Custom Services (NCS).
Olawale-Cole spoke through his deputy Gabriel Idahosa in Lagos on Thursday along with key players in the Nigerian auto industry at a symposium organised by the LCCI Auto and Allied Group under the theme ‘The Auto & Allied Sector: Present Day Realities in Nigeria’.
The Chairman of CIG Motor, Chief Diana Chen; General Manager of Suzuki By CFAO, Aissatou Diouf; Executive Director at Truckmaster Nigeria, Dr. Oseme Oigiagbe, and Mandela Oniemola, were other key speakers at the forum.
Olawale-Cole kicked against the Customs use of spot exchange rate to compute import duties.
He said, “The decline recorded in third quarter is a testament of automobile industry reactions to policy inconsistency, that is amplified by frequent reviews of import duties by the Nigeria Custom Services (NCS).”
He also noted that the twin effect of subsidy removal and exchange rates harmonization had impacted the industry with inconsequential gains and huge loss to the stakeholders.
He said, “If the government is not swift in stabilising exchange rate, investors may be discouraged, and domestic producers will be sceptical about mass production of vehicles that is perceived costly.
“It is important to note that the MDAs, especially the Nigeria Customs (NCS) should not use spot exchange rate as the basis for computing import duties in order to avert uncertainty and minimise the consequences of information asymmetric among stakeholders in the industry.
“However, computation that is based on last month average exchange rate could be a more reliable methodology among others. This approach will allow stakeholders to anticipate and estimate the cost of import duties that is void of misinformation, and frequent adjustment by the NCS.”
He urged the government to work with the private sector players to develop policies that promote and reduce the cost of local production as well as “encourage innovation and competitiveness to ensure the growth and sustainability of the automotive industry.
“The Federal Government, and the Nigerian Investment Promotion Council (NIPC) should collaborate with the private stakeholders to encourage investments in the industry.”
He called for the establishment of an automated banking system and a resilient local manufacturing sector.
“The sector should prioritize the use of quality-controlled, domestically manufactured parts and components, together with a skilled workforce of specialists capable of supporting investments in manufacturing and assembly,” he said.
Chairman, Automobile and Allied Services Group at LCCI, Otunba Adekunle Jaiyesimi, spoke on the significant role of the automotive industry to the nation’s economy.

“From manufacturing and distribution to maintenance and repair services, it contributes to employment, revenue, and technological advancement,” he stated
Jaiyesimi listed the challenges and opportunities in the sector as technological advancements; sustainability and environmental issues; supply chain disruptions and government policies and regulation.

Auto

10th Transport Day event to focus on safety issues

Published

on

Pictures from past editions

10th Transport Day event to focus on safety issues

Transport industry experts and other stakeholders from both public and private sectors will x-ray safety issues across all modes of transportation at the 10th edition of the Nigeria Transport Lecture holding in Lagos on May 23, 2024.

The event fixed for Radisson Blu Hotel, Ikeja GRA, Lagos, according to a statement by Transport Day Media, will hold under the theme ‘Transportation Safety in Nigeria: The Way Forward’.

Those expected at the lecture are key industry players such as the Federal Road Safety Corps (FRSC), the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers’ Council, and the Nigeria Safety Investigation Bureau (NSIB).

The Editor-in-Chief of Transport Day Media, Mr. Frank Kintum, said the topic had become relevant in contemporary times because many lives and property were being lost to lack of adherence to safety measures in all modes of transportation.

He said, “Irrespective of the level of infrastructural development in the transportation sector, if safety is not promoted, we are going to continue to record loss of lives and valuable property.

“Hence, the lecture is meant to address pertinent issues concerning the industry as it concerns our local Nigerian setting.

“Aside from the lecture, we are also going to use the opportunity to recognise some players, both public and private sectors, who have significantly contributed to the growth of the sector and the economy in general.”

Continue Reading

Auto

BKG holds all-inclusive Lagos Motor Fair, auto parts expo June 4-6

Published

on

BKG holds all-inclusive Lagos Motor Fair, auto parts expo June 4-6

BKG Exhibitions Limited, organizers of annual Lagos International Motor Fair & Africa Autoparts Expo, has announced this year’s edition will be all-inclusive and billed to hold from June 4 to June 6.
It said in a statement that the event incorporating the Africa Motorcycle and Tricycle Expo aimed at reinforcing focus on attaining a thriving automotive industry in West Africa using Nigeria as the hub.
According to the BKG Managing Director, Mr Ifeanyi Agwu, apart from exhibition of automobiles (18th edition) and auto spare parts (11th), there will be Business-to-Business interface between auto dealers and Original Equipment Manufacturers (OEMs), seminars and workshops with closing of deals.
Even as he urged the Federal Government to focus on auto parts manufacturing, the BKG boss said over 100 original components manufacturers from China, India, South Korea, South Africa, Singapore, Turkey and Nigeria, including major automobile distributing/manufacturing companies in Nigeria would be showcasing at the event.
“Our intention in bringing them is to enable Nigerians and neighbouring West Africans engaged in automobile, spare parts, accessories, and allied businesses to work out rewarding and lasting business relationships with the main companies engaged in manufacturing these products and services.
“Nigeria is endowed with natural as well as man-made resources to become one of the most vibrant automotive industry giant in the world” and as such we in partnership with other well minded players will always deploy all we can to see that the country attains this height sooner than expected.
“This informs our resolve to use our events despite the challenges which keep increasing to support the rapid growth of the industry.
Agwu, who is also the chairman of the event’s organizing committee, also said, “We have been using the events over the years to drive more investment into automobile spare parts and accessories manufacturing in Nigeria as well as boosting aftermarket activities in the sector with the objective of showcasing the capacities and potential of this important sector of the economy.”

The event, he stressed, aimed at spurring the rapid springing up of companies that manufacture these components parts and use it to enhance the policy leading to the establishment of a virile automotive sector in the country.
He advised the Federal Government to focus more on spare parts manufacturing in place of assembling. According to him, spare parts is the place where the real technology transfer takes place.

Specifically, Agwu noted that this involves precision and proper planning more than the coupling that takes place in assembling.
This, he added , would give rise to establishing of more Original Equipment Manufacturers and increase employment”.
He said that there should be a review of the ongoing auto policy to make it achieve the desired ends.
Agwu stated, “Organizing the event has been very challenging we are only trying to find a way to push it as a key event in the sector we cannot but use the event to draw the necessary attention to the sector.
“Government should bail out the automobile companies operating in the country.
“It is a sector that affects virtually everything. It occupies prime position in the economy.
“If it is not done now it will in the very near future affect a whole lot in the life of the people and the economy.
“The challenges of hosting this event is becoming daunting but our drive in continuing is that the sector must not be allowed to die.
“In conjunction with our foreign partners, we have reached out to many of such companies, and happily, the response has been tremendous and we are expecting close a lot of them.
The statement said from June 4-7, 2024 at the Federal Palace Hotel, Victoria Island, Lagos, the venue of the event, each of those days that the fair will last is loaded with activities and events that will make this edition remarkably rewarding to the exhibitors, visitors, and other stakeholders.

Continue Reading

Auto

Appeal court takes over NURTW case as NIC withdraws

Published

on

Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.

Continue Reading

Trending

Skip to content