Wednesday, 16 September 2015

President Buhari to Continue Auto policy

…Mandates FG Ministries, Others to Acquire Locally- Assembled Vehicles.

Contrary to the fears expressed at certain quarters
across Nigeria, after the recent general election,
the federal government has affirmed its
commitment to the continuity of the Nigerian
Automotive policy.
According to Motoring World, Director General of National Automotive Design and
Development Council (NADDC), Engr. Aminu Jalal made
the disclosure in his office in Abuja while receiving a
group of Chinese investors from the world’s largest
manufacturer of high capacity buses, Zhengzhou
Yutong Buses Company Limited, led by a director of
the company, Mr. Michael.
According to Engr. Jalal, President Muhammadu Buhari
had repeatedly emphasized Federal Government’s
determination to diversify the economy through
promotion, support and protection of local industrial
production in all areas that the country had sufficient
capacity, including the automotive industrial sub-sector
with its potential for mass employment.
On patronage, the NADDC boss stated that Federal
Government is committed to the patronage of Made-in-
Nigeria automobiles, adding that all Federal Ministries,
Departments and Agencies were mandated to source
their vehicle procurements from local assembly plants
except where the specification of the required vehicle
was not among the range of models being produced by
the various brand names in the country.
“We have the assurance of government’s patronage at
the Federal level and we are still talking to state
governments to appreciate the benefits of buying from
our local producers – the products of our local plants
are of very high quality and standards, they have
readily available service parts, they have after-sales
service and they are cheaper because of the tariff
differentials with the imported FBUs.” He assured.
Engr. Jalal explained that while the tariff for FBU
imports outside NAIDP is 35% duty plus 35% levy for
cars and 35% duty for commercial vehicles, import
tariff for investors within NAIDP range from 0% to 10%
for CKD and SKD assembly operations while
concessionary FBU imports within NAIDP would be at
35% duty for cars and 20% duty for commercial
“Financially, you will find that it does not make
economic sense to import FBUs into Nigeria. The direct
effect of the tariff differential makes the locally
produced brands relatively cheaper than the imported
FBUs of the same brand. Now that we have succeeded
to a large extent in bringing back assembly operations
into Nigeria, we are now focusing attention on local
contents development and quality control.” Engr. Jalal
He added that efforts were now geared towards
attracting international Original Equipments
Manufacturers (OEMs) to partner with our indigenous
entrepreneurs in setting up manufacturing facilities
where locally available materials would be used to
make good quality vehicle components and parts that
can be incorporated into assembly operations.
The Director General emphasized that the Council was
collaborating actively with the Standards Organization
of Nigeria (SON) to ensure that all the local assembly
plants and components manufacturers complied with
stipulated quality controls and safety standards with a
view to ensuring that Nigerian-made ppautomobiles were
not in any way inferior to similar products from
reputable plants elsewhere in the world.
The Yutong team was in NADDC Headquarters @@@to seek
clarifications and make necessary business enquiries
especially in respect to government’s position on the
continuity of the auto policy, tariff protection,
applicable incentives, products patronage, quality
assurance and standards. This is preparatory to its
proposed setting up of vehicle assembly operations for
the building of high capacity buses in Nigeria.
Presently, imported Yutong buses are in Nigeria for
mass transit services especially in Abuja by the Federal
Capital Territory Administration (FCTA) and Trade
Union Congress (TUC).
The main products of Yutong are high capacity
coaches, city buses, intercity buses, school buses and
special vehicles. The company is reputed to have
successively produced business purpose vehicles,
recreational vehicles, blood collection vehicles, physical
examination vehicles, ambulances, engineering
vehicles, airport buses, aluminium city buses, learner-
driven vehicles, products display vehicles, mobile
library vehicles, sightseeing buses and other products
featuring high technical content, sophisticated product
structure and reliable quality to meet the diverse needs
of customers and provide customers with best


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