Business
Reducing imported vehicles tariff will worsen economy, NAMA warns
The Nigerian Automobile Manufacturers Association has warned that the plan by the Federal Government to cut the import tariff on vehicles will worsen the nation’s economy.
Executive Director of NAMA, Remi Olaofe, who sounded the warned, specifically said it would lead to loss of more jobs; kill the local automotive industry gradually being revived, as well as make Nigeria a dumping ground for all manner of imported vehicles.
Olaofe, who spoke at a capacity training programme organised by the Nigeria Automobile Journalists Association (NAJA) in Lagos, said NAMA was already engaging the government on the need to rescind this decision as encapsulated in the new finance bill.
His viewed tallied with Chief Innocent Chukwuma’s, Chairman, Innoson Vehicle Manufacturing Company Limited (IVM) in a recent interview with journalists, who said that the reduction of the tariff would be a disincentive to investments, in addition to setting Nigeria’s automotive industry back by at least 10 years.
Chukwuma described the government’s plan as a “shocking decision,” stressing that it would lead to the forced closure of many auto plants in the country.
The Federal Executive Council (FEC) recently announced the plan to reduce the import duties and levies on buses, tractors and other vehicles as contained in the 2020 Finance Bill.
The government said it would reduce the tariff on tractors from 35 per cent to 10 per cent; goods transporting vehicles, from 35 per cent to 10 per cent; and those for transporting people, from 35 per cent to five per cent.
Olaofe urged the government to revive the National Automotive Industry Development Plan (NAIDP) 2013 for the growth of the automobile industry in Nigeria, stressing that policy inconsistency had been the bane of growth of the country.
He recalled how the announcement by the FG of the “National Automotive Industry Development Plan (NAIDP) in 2013 and the subsequent increase in the import tariffs on Fully Built Vehicles (FBUs) attracted the interest of leading auto assemblers.
“With most of the newly established Auto Assembly plants still at their teething stage, the automobile industry was rattled when the content of the proposed finance bill was released to the public.”
Olaofe said reducing the imported vehicles tariff could “result in reversal of huge foreign investments being channelled to this sector of the Nigeria economy; (put) pressure on the already scarce foreign exchange with its attendant pressure on our trade balance; avoidable gross failure of ancillary industries that largely depend on the auto assemblers; worsened unemployment from layoffs and business failures; and Nigeria returning to vehicles dump ground.”
Olaofe lamented that while Nigeria was still toying with the implementation of NAIDP, the neighbouring West African country, Ghana, which “borrowed Nigeria’s automotive bill,” had turned its own into a law with automobile companies jostling to establish plants in that country.
With this position, he argued that the implementation of the African Continental Free Trade Area (AfCFTA) in 2021 would further weaken the Nigerian economy as goods and products from Africa could come in without restrictions.
He said, “It can’t be in the interest of this country to say that the NAIDP Bill 2013 is about to collapse. There is no single part of vehicles that is manufactured in this country. We used to produce tyres, they are no more here. We produced batteries in this country before, it has become a history. In Kaduna, we had a company assembling Peugeot vehicles, it is no more there. The assembling plants are not doing anything again.
“There is no economy in the world where you see vehicles manufacturing go from zero to a Complete Knock Down (CKD); there is a process. It is a driven process. Money is involved. Automotive policy is the best we have; but we want to destroy it. This is very scary.
By next year, we are starting with the AfCFTA . What is going to be the hope of this country? Ghana borrowed the auto policy of Nigeria, Ghana has commenced implementation. I was in Rwanda last year to see its assembly plant; it is still this Semi Knocked Down (SKD). The issue is that you cannot have an auto assembly without the market. We have got the market here.”
He urged Nigeria to use its market to its advantage, adding that other African nations were targeting the market
Business
Relief for Lagos farmers as Adebule gives them free fertilizers
Relief for Lagos farmers as Adebule gives them free fertilizers
More and cheaper food items are expected from Lagos in the next harvest season as senator representing Lagos West District, Dr Idiat Adebule, has distributed 1,132 bags of fertilizers to farmers in 28 local governments and local councils development areas.
The senator said the gesture was from the Federal Government.
She said the free fertilizers was part of President Bola Ahmed Tinubu’s commitment in boosting food production in the country.
The project, she said, would help ease economic challenges.
Adebule said, “If you look at the Renewed Hope Agenda, part of the promises made by President Tinubu was to scale up activities in the agricultural area.
“To keep that promise, the Federal Government under his (Tinubu’s) leadership has released fertilizers to representatives of the people to distribute to farmers in their constituencies.”
She urged the beneficiaries to put the fertilizers into proper use.
Secretary-General of Conference of 57 local governments and local council development areas and Chairman of Odi-Olowo/Ojuwoye Local Council Development Area (LCDA), Razaq Ajala, said the Federal Government decided to support the farmers from all the six geo-political zones in other to boost harvest.
Ajala expressed optimism that this gesture would crash food prices.
Vice Chairman, All Farmers’ Association of Nigeria, Lagos State chapter, Shakiru Agbayewa, stressed that currently fertilizers now cost between N40,000 and N50,000 which farmers couldn’t afford to purchase.
“The Federal Government in his own wisdom has decided to donate the fertilizers to ease the burden of farmers and enhance food production,” he said.
He hailed the Federal Government for the food security initiative and promised to make good use of the fertilizers received.
A beneficiary, Oluwatoyin Olufuwa, praised the government and said, “They’ve done something great for the farmers because it will help in enhancing food production, quality of food as well as helping farmers to make more profit.”
Coordinator for Badagry farmers, Augustine Onu, noted that the initiative was a huge one
“I’ve never seen this kind of distribution done before since I have been a farmer. We haven’t experienced such massive distribution of fertilizers to farmers at local government,” Onu noted.
Business
FG begins sale of crude oil in naira to Dangote Refinery
FG begins sale of crude oil in naira to Dangote Refinery
The Federal Government has officially begun the sale of crude oil in naira to Dangote refinery as directed by President Bola Tinubu.
This piece of news came from Wale Edun, Minister of Finance and Coordinating Minister of the Economy, through a statement on the ministry’s official X account.
The statement read, “The sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.”
It continued, “Following a meeting of the Implementation Committee, chaired by the Hon. Minister of Finance and Coordinating Minister of the Economy on October 3rd, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.”
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The review meeting involved significant stakeholders, including the Minister of State for Petroleum (Oil), the Special Advisers to the President on Revenue and Energy, top executives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives from the Dangote Group, and leadership from the Nigerian National Petroleum Company (NNPC), including its Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).
Recall that back in July, President Tinubu approved the sale of crude oil in naira, with the Dangote refinery chosen as the pilot for the initiative.
The long-term impact of this move on petroleum prices remains to be seen.
FG begins sale of crude oil in naira to Dangote Refinery
Business
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
Oil marketers have raised concerns about a potential fuel scarcity following the shutdown of the Nigerian National Petroleum Company Limited (NNPCL) petrol purchasing portal.
The shutdown has prevented dealers from placing new orders for fuel, leading to supply disruptions.
According to marketers, over 90 million litres of petrol, worth approximately N79 billion, are pending delivery from NNPCL.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that while marketers can still load fuel, they cannot access the portal to check prices or make new purchases.
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Ukadike stated that there are currently over 2,000 pending tickets for 45,000-litre petrol trucks, which amounts to a significant volume of fuel awaiting supply. He warned that the continued closure of the portal could result in another wave of fuel shortages across the country.
Other marketers, speaking anonymously, echoed concerns that the portal’s shutdown is already causing fuel shortages.
One marketer mentioned, “Everyone is affected because we all go to the NNPC portal to place our orders, and when the portal is inaccessible, supply is disrupted.”
As of now, there has been no official response from NNPCL spokesperson Olufemi Soneye regarding the situation. However, some marketers believe the portal was shut down temporarily to resolve backlogs of pending orders.
90 million litres stuck as NNPCL shuts petrol purchasing portal – Marketers
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