Reducing imported vehicles tariff will worsen economy, NAMA warns - Newstrends
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Reducing imported vehicles tariff will worsen economy, NAMA warns

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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

Railway

Lagos-Ibadan rail to get three more trains as NRC opens two new stations

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Lagos-Ibadan rail to get four more trains as NRC opens two new stations

The Nigerian Railway Corporation will soon increase the daily train trips on the Lagos-Ibadan standard gauge rail line from two to six.
Railway District Manager (RDM) for Lagos, Augustine Arisa, an engineer, disclosed this in an interview with some select journalists including NewsTrends reporter.

He said four more trains, two each from Lagos and Ibadan, would be added as soon as ongoing work on the telecommunication facility was completed. The facility will ensure smooth communication and between the train driver and the control tower.
Arisa spoke just as the corporation has opened for operation two recently completed train stations along the route, Ijoko and Papalanto.
The RDM said, “We currently run two return trips on Lagos-Ibadan standard gauge line. I want to run six trains daily when the telecommunication facility is fully ready.
“I also want to move more containers from the port. This will no doubt positively affect the prices of goods in the market.
“It’s a lot of trailers that will be taken off the road. In the long run, it makes the products being carried cheaper for the final consumers/ buyers
“The double issue of accumulated demurrage and port congestion will also be solved with the evacuation of cargoes by rail. It saves the importer the cost of demurrage and ultimately makes the goods cheaper.”
He also spoke on the measure being taken to reduce the cost of moving containerised goods from Apapa port, Lagos, to Ibadan, Oyo State, following complaints by importers and customs agents.
Already, he said the Managing Director of the NRC, Fidet Okhiria, (an engineer), had set up a committee to review the container haulage rate in order to make it competitive and attractive to more people.
He said, “When the issue came to us, the MD immediately called a meeting and set up a committee to review the situation.
“All over the world, people complain of double handling.”
“On the complaint, we are expecting the report of the committee for a possible downward review of the freight rate,” Arisa added.
Meanwhile, the corporation has officially inaugurated the Ijoko and Papalanto train stations.
The report of the opening was obtained by NewsTrends from the NRC website on Tuesday.
This is therefore good news for people hoping to board or drop the train at these stations.
Before now, the train only stopped at Agege, Abeokuta and Omi Adio after taking off from Mobolaji Johnson Station in Lagos or Obafemi Awolowo Station in Ibadan.

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Auto

Excitement as Jetour Steals the Show at Abuja Motor Fair

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Excitement as Jetour Steals the Show at Abuja Motor Fair

Jetour, the new kid on the block in the Nigerian auto market, is currently making waves in its debut at the ongoing Abuja Motor Fair.
Jetour’s beautifully decorated pavillion and its array of new vehicles
were one of the major attractions at the auto event holding at the International Conference Centre, Abuja.
Most visitors to the fair since Monday December 4, 2023 when the fair arena was open, were held spellbound by the aesthetics and unique designs of all the new Jetour models on display.
On parade within the brand’s enclosed stand are X70 Liberty, X-70 Plus Elegance, X-90 Cruise, and Dashing, all sport utility vehicles.
Members of the National Assembly are expected to have a full view of the Jetour dashing beauty on wheels at the assembly complex in Abuja next week where the brand of vehicles will be showcased.
After the official opening ceremony of the Abuja Auto Fair on Tuesday, the special guests including a representative of the Director General of the NADDC Joseph Osanipin had the opportunity to visit each vehicle’s stand at the fair.
The NADDC DG representative could not resist the urge to feel one of the Jetour models X70 Plus Elegance as he stepped into the driver’s seat.
He marvelled at the dazzling dashboard and other features of the resplendent interior.
Obviously impressed by what he saw inside and outside the vehicle, he said, “This is beautiful.”


All the models boasting advanced technologies, comfort and creative designs have kept people at the auto show amazed, especially going by their affordable prices.
Jetour, one of China’s most revered auto brands and launched by Chery Holding Group in 2018, has scored many firsts in China where competition is really high in the auto sector.
According to Jetour’s representative in Nigeria, Jetour Mobility Services, “Jetour Automobile is a new brand launched by Chery Holdings in response to the market trend and consumer demand.
Jetour says its focus is to be a leader in mobility as well as provide reasonable travel solutions for individuals and families.
It has set a goal of providing an excellent vehicles that demonstrate individuality for today’s young people.

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Business

Stakeholders seek Islamic financing for primary healthcare

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Stakeholders seek Islamic financing for primary healthcare

Finance and healthcare experts have called for the utilisation of Islamic financing as an alternative funding source for primary healthcare in Nigeria.

They made the call yesterday in Abuja during a one-day international summit organised by the Africa Islamic Economic Foundation and the Duke Logistics and Consult Limited with the support of the Development Research and Projects Centre (dRPC).

The summit brought together, participants from the Islamic Development Bank, academics, the business community and technology firms on telemedicine, among others.

It was themed ‘Harnessing Innovative Sources of Financing Primary Healthcare Infrastructural Development in Nigeria.’

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A former Kano State governor, Senator Ibrahim Shekarau, who chaired the summit, said that investing in digital health technology through the instrument of Islamic financing would not only bridge the gaps in healthcare delivery in Nigeria but also improve access, reduce geographical barriers, and enhance the quality of healthcare services.

He said it would also seamlessly provide specialised healthcare for Nigerians regardless of their social status.

Dr Stanley Ukpai said there was a need for Nigeria to review its dependence on budget as the only source of healthcare financing.

He called on stakeholders at the summit to find alternative funding sources to diversify the domestic funding sources for health.

The president of the African Islamic Economic Foundation, Malam Baba Yunus Muhammad, said accessibility to quality primary healthcare remained a significant hurdle, especially in remote areas, adding that digital technology and Islamic finance could play a pivotal role in revolutionising healthcare infrastructural development.

Stakeholders seek Islamic financing for primary healthcare

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