Fidelity bank banner Bayelsa State banner
High tariff crashes car imports, fuels smuggling

By Alexis Akwagyiram, Chijioke Ohuocha on 16/12/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 965

 •NPA MD Hadiza Usman
•NPA MD Hadiza Usman

A Nigerian tariff on car imports aimed at boosting local production has reduced the number of vehicles brought into the country this year by a quarter and fuelled smuggling from neighbouring Benin, the ports authority said.

Car imports fell to 70,453 units in the first 10 months of this year, a 26.8 percent reduction on the same period of 2016, Nigerian Ports Authority (NPA) figures showed.

The government imposed a 70 percent tariff on imported vehicles in December 2015 as part of attempts by President Muhammadu Buhari to stimulate local production.

Before that, the tariff was 20 percent. The head of the NPA said the policy meant local demand for cars was not being met.

“We appreciate the need for the government to have assembly and manufacturing in Nigeria but we are concerned that the capacity of the Nigerian market is beyond what is said to be assembled in Nigeria,” said Hadiza Usman, managing director of the NPA.

“We have seen a lot of cars being smuggled through neighbouring countries - mainly from Benin,” she added. Benin maintains low import tariffs compared with Nigeria, which for years been beset by chronic congestion in its ports.

Vehicle imports fell to 96,222 units last year from 131,994 in 2015, according to port figures. Usman said the ports authority expected a further drop in 2018 to 67,400 units.

The tariffs imposed in 2015 attracted U.S. car maker Ford , South Korea’s Kia Motors and Germany’s Volkswagen, which announced plans the same year to set up assembly plants in Nigeria.

But activity slowed soon afterwards as the economy slid into recession in 2016 due to low oil prices and a currency crisis. Although it emerged from recession in the second quarter of this year, growth is fragile and limited financing for new cars has stunted sales.

Ford’s local partner said it assembled 739 units of its Ranger pickup in 2016 and this year. Its plant in Nigeria’s commercial capital, Lagos, can assemble 5,000 cars annually.

Kia Motors, which has a plant in Lagos with a 20,000 vehicle capacity, said it assembled 1,800 units this year but did not give figures for 2016.

And a representative of Stallion Motors, Volkswagen’s local vehicle assembly partner, said work stopped around August due to issues related to the exchange rate and production costs.

He said up to 30 vehicles were being rolled out monthly, although assembly did not happen on a regular basis. (Reuters)

Source News Express

Posted 16/12/2017 1:01:29 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Niger Deltans warn Buhari

NSCDC operatives nab 8 Boko Haram kingpins

Eviction Notice: Oyo traders dare govt.

IGP Abubakar presents AIG Suleiman Abba to President...

More trouble for Okorocha •Youths protest at APC...

Benue citizens storm FCT, denounce massacre by herdsmen...

PDP faults exchange of detained Boko Haram terrorists...

Impeached South Korean President to spend 24 years...

Plight of a traumatised 4-year-old IDP who shouts...

Awo's widow hosts Buhari, APC leaders

Police warns against illegal arrests, harassment of innocent...

The 9 kinds of people supporting Buhari for...

 

Latest News INEC gives notice of 2019 elections Police raids Peace Corps office, arrests 24 members 20 trapped under rubble of collapsed building in Abuja Anti-Open Grazing Law: Crucify us with Ortom, Benue monarchs tell FG Police parades father, 13-year-old son over child theft 2019 Elections: Presidential aide raises concern over NASS silence on Police, DSS budgets Third Mainland Bridge to be shut month end — Fashola We’ll win if election is conducted today — APC Sallah Celebration: Lagos CP deploys additional 1,000 policemen Fayemi vows to review mass recruitment by Fayose We have seen dividends of democracy, Kwara chief tells Minister during road inspection Enugu commences repairs of potholes on urban roads

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (377,951 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (366,805 views) Shameless Genevieve Nnaji exposes breasts in public (296,511 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (242,043 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (222,873 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (217,255 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (192,710 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (174,890 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (159,733 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (158,494 views) Lagos plane crash: Journalist releases victims’ names (152,857 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (143,136 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (56) Business & Economy (3,460) Business Verdict (48) Columnists (911) Complaints & Requests (95) Enterprise & Opportunities (207) Entertainment (528) Features (637) Global Business Monitor (294) International (2,275) Interview (162) Live Commentary (28) Love Matters (134) News (38,095) Opinion (1,060) Pidgin (11) Politics (6,078) Religion (822) Sports (1,648) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Real Madrid vs Atletico Madrid 2-4 Highlights and Goals

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement