The Nation Newspaper

Tag: NAC

  • NAC chair to INEC: recognise my leadership

    The National Chairman of the National Action Council (NAC) Hajiya Rabia Cengiz has appealed to the Chairman of the Independent Electoral National Commission (INEC) Prof Mahmood Yakubu, to recognise her leadership.

    She made the appeal in Abuja on yesterday.

    Hajiya Cengiz said it was inexplicable that INEC would refuse to recognise a duly convened national convention of the party and elections of its national officers despite the presence of INEC officials at the convention.

    She said: “We were in court today (yesterday) with INEC for refusing to recognise our convention held on 14 October 2017. Unfortunately the judge in person was not on seat and the case adjourned till 25 January 2018.

    “We are trying to ensure that INEC recognise our convention and my election as the duly elected national chairman of our party.

    “I am saying that INEC Chairman is gender bias. We have 46 political parties and only one woman is a national chairman of a political party. Now another woman emerged and INEC is refusing to accept that, why?”

     

  • ITF, NAC to establish automotive training centres

    ITF, NAC to establish automotive training centres

    The Industrial Training Fund (ITF), has started discussion with National Automotive Council NAC to establish National Automotive Parts Manufacturing and Training Centres as part of its skills acquisition programme, the Acting Director-General, Dickson Onuoha, has said.

    Onuoha, who addressed the press yestrday in Abuja, said apart from conserving foreign exchange that is expended on the importation of auto parts, the centres will ensure that needed auto parts are produced in the country.

    He said youths will also be trained for employment in the automobile parts’ manufacturing sector of the economy, adding that the fund is also working on the expansion of facilities at existing skills centres in Ikeja, Kano and Abuja.

    “At the model skills training centre in Abuja, adequate  provision has been made in 2016 budget to acquire the remaining complement of equipment required to graduate all trainees at the centre and admit new ones.

    “The Fund is also fast-tracking plans to commence the long term skills training programme at Industrial Skills Training Centre (ISTC), Kano while arrangements are in top gear to commission the mechatronic and mechanical workshop that have been built in the centre.

  • NAC to roll out made-in-Nigeria vehicle finance scheme

    NAC to roll out made-in-Nigeria vehicle finance scheme

    The National Automotive Council, NAC, has partnered with WesBank of South Africa to roll out made-in-Nigeria vehicle finance scheme to come into effect before the end of 2015.

    In a statement by the south African bank, “The WesBank team had interactive session with potential partners including selected vehicle dealers to obtain first hand information to get acquainted with certain dealership practices peculiar in Nigeria.”

    The statement further said, “The NAC scheme has been designed around a network of vehicle dealers, manufacturers, distributors from whose floor the purchase process will begin.

    “Earlier, NAC had signed a Memorandum of Understanding with First Rand Bank in Johannesburg, South Africa mandating WesBank to manage consumer vehicle financing for Nigerian assembled cars.”

    The Director General, NAC, Aminu Jalal, maintained that the federal government approved the Nigeria Automotive Industry Development Plan, NAIDP, to attract investment from vehicle manufacturers globally and grow the supply of locally manufactured vehicles.

    He said, the MOU would allow WesBank to work closely with NAC to develop vehicles financing solution, specifically for those built in Nigeria with the aim of making them readily affordable for the average Nigerian car users.

  • Fed Govt clears air on auto policy implementation

    Fed Govt clears air on auto policy implementation

    • Levy exemption ‘misinterpreted’

    The ongoing implementation of the Nigerian Automotive Industry Development Plan (NAIDP) is taking its course, and there is no intention to reverse, or alter any aspects of the process, the Federal Government has said.

    In a statement, yesterday, the Director-General, National Automotive Council (NAC), Aminu Jalal, said  that government has not reneged on its promise to shift the implementation process of certain aspects of the NAIDP till January 2015 as is being alleged, noting that the application of the levy exemption was only being misinterpreted.

    He said: “The government has already shifted the implementation of the full tariff on new vehicles from January 10, 2014 to July 1, 2014 to enable importers clear vehicles they had ordered at the old duty rates.  The government only extended the concession on the importation of used vehicles only by another six months till December 31.

    He explained that this step was taken “because up to three out of four imported cars are used, and time needs to be given to the assembly plants to produce affordable vehicles to replace the imported used ones. Unfortunately, this levy on new cars was misinterpreted to mean that all vehicles, including new FBU imports were exempt from levies until December 31.”

    Jalal stressed that this could not have been the case, because existing and new entrants into the assembling process under the NAIDP,  have started to roll out new products at competitive rates. He explained that as a result of continuous inflow of new Fully Built Units (FBUs)  without restriction occasioned by this misinterpretation, assemblers began to cut down on orders for assembly kits and this has the potential to derail the policy.

    He said: “Action taken was therefore urgent. The government decided to clear this misinterpretation.  Given this clarification, the Nigerian Customs Service (NCS), has been thus guided in their operations.  Council wishes to reassure Nigerians that new vehicles have been stockpiled under the NAIDP awaiting buyers, and there is therefore no need to be apprehensive of  any adverse rise in prices.’’

    Jalal explained that a special package under the NAIDP was being worked out for dealers, who had made some commitments to enable them import new FBUs at concessionary import duty rates (minus the levy), until they set up local assembly operations.

    He said: “The response to the policy by investors has exceeded our expectations. The existing assembly plants have a new lease of life, with VON assembling the Nissan and Hyundai vehicles, and PAN resuming assembly of Peugeot cars. INNOSON will soon start car assembly to complement his commercial vehicles production.

    “Twenty-two companies have indicated interest to assemble vehicles and four will start assembly operations before the end of this year, and the rest next year. The implementation of the policy is now focusing on local content development. “

    Jalal said the objective of the automotive policy was to bring back vehicle assembly in Nigeria and develop automotive content to supply the assembly plants.

    “This is because of the importance of the industry in employment generation, GDP contribution, technology acquisition, SME development, skills development and technology acquisition,” he noted.

  • ‘Buyers of tokunbo vehicles won’t get number plates from FRSC’

    ‘Buyers of tokunbo vehicles won’t get number plates from FRSC’

    The National Automotive Council (NAC) has said smuggled vehicles will soon become unattractive because their buyers will not be able to obtain number plates from Federal Road Safety Commission (FRSC) and vehicle licences from state vehicles registration offices.

    NAC was reacting to reports on the looming crisis in the Auto sector, following worries by Freight Forwarders Association of Nigeria that the new National Automotive Industry Development would stem the inflow of used vehicles into Nigeria and deny them their main source of income when the workers are laid off.

    It listed the factors that would stem the inflow to include 150 per cent hike in tariff on used vehicles, smuggling and possible diversion of second-hand vehicles to neighbouring ports.

    Freight Forwarders Association also worried that Nigerians cannot afford new cars if produced locally, that tariff hike will and has already led to price hikes for existing stock of vehicles in Nigeria even before the policy takes effect and doubted the capacity of existing local automotive plants to meet demand.

     

    It advised that the Original Equipment Manufacturing OEM should invest in Nigeria first before requesting protection. Claiming to base this advice on the stance of former President of Nigeria, Olusegun Obasanjo’s regime.

    A statement by Mr. Luqman Mamudu, NAC’s Director Policy and Planning, said the policy has an in-built program to pursue this course.

    He said, “Smuggled vehicles will sooner or later become unattractive because those who buy them will certainly no longer be able to obtain plate numbers from Federal Road Safety Corps (FRSC) nor Vehicle License from various state vehicle registration offices. The policy has an in-built program to pursue this course.

    “The policy program for vehicles assembly makes it extremely easy for new and existing entrants to set up shop. The objective is to quickly ramp up national output of new and affordable vehicles to meet demand in less than two years and significant employment will happen for all levels of Nigerians. With time, Nigeria will commence export by RORO. RORO is two ways; import and export. At the moment, our association simply rolls off. With sustained implementation of the policy, they will soon roll on because Nigeria will export vehicles eventually.”

    Also, the National Automotive Industry Development Plan (NAIDP) was well thought out with all the concerns raised in full focus. Investment in the automotive industry is capital intensive and most OEMs go to countries where investment environment is right and a country whose borders are as wide open (lowest tariff compared to economies with automotive agenda) to influx of Used heavily undervalued vehicles definitely is not one of its desired destinations.

    “If, as agreed by the group that NAIDP is desirable, something needed to be done in this respect. The tariff by the way is not 150 per cent. All used vehicles will be imported but valued as new ones and depreciated by 10 per cent annually for cars and 20 per cent annually for commercial vehicles. It is the residual value that is subject to 35 per cent duty and 35 per cent levy. Both new and used vehicles will continue to flow into Nigeria in form of SKD/CKD and who else will clear them if not members of the association? What has simply changed is the type of cargo. The local manufacturers will still import FBUs twice the number of SKD/CKD and all will be cleared by the association members.

    “The policy is simply designed to ensure that a larger proportion of automotive vehicle import is in the form of Semi Knocked Down (SKD) and Completely Knocked Down (CKD) form and duties are crashed to average of seven per cent for SKD and zero per cent for CKD to encourage this. The whole idea is to create jobs for Nigerians. New Fully Built Units (FBUs) at concessionary import duty rates by assemblers to bridge possible gaps in supply will continue in order to control possible price rise.”

    He added that on the issue of affordability, the policy makes provision for a Credit Purchase Scheme to be funded from sources including existing NAC fund, and levies charged on imports in order to offer Nigerians opportunity to buy new cars on credit at single digit interest rate for upward of forty eight months.

     

  • Aganga defends govt’s automotive policy as Stallion tackles giants

    Aganga defends govt’s automotive policy as Stallion tackles giants

    Minister of Industry, Trade and Investment, Olusegun Aganga yesterday defended the integrity of the new automotive policy of the government.

    He also dismissed the allegations that members of the auto dealers’ group were not carried along in the documentation of the policy.

    Also, sources close to the minister said the announcement of the policy was not a surprise as the group would want the public to believe but stakeholders have known and participated actively in the formation since it was first mooted in November last year.

    “The ministry was involved in a participative process of formulation, with active involvement of industry players and consultants from South Africa, wherein a similar policy was successfully implemented,” a source said.

    Aganga also confirmed that Chief Michael Ade Ojo of Elizade had been to his office to discuss the plans of Toyota to assemble a plant in Nigeria right after the announcement. “When the policy was eventually approved on October 2, Chief Ojo was in my office on October 4, to intimate me of the plans he has with Toyota to set up an assembly plant.”

    However, there appears to be a gathering of support for the policy which is expected to generate more than 70,000 jobs in direct employment. According to the Director-General, National Automotive Council (NAC), Mr. Aminu Jalal, said the policy has been endorsed by many global automotive manufacturers, saying Toyota, Nissan, Renault and General Motors are already making plans to key into the policy.

    “At full capacity, the Nigerian automotive industry has the potential to create 70,000 skilled and semi-skilled jobs along with 210,000 indirect jobs in the SMEs that will supply the assembly plants. 49,000other jobs will also be created in the raw materials supply industries.”

    Another stakeholder, Chief Innocent Ifediaso Chukwuma, chairman of Innoson vehicles Manufacturing Company Limited while commending the initiative also said the step will greatly encourage the local manufacturing plants.

     

     

    Vice-President, Namadi Sambo soon after the announcement said government would not go back on the policy despite the challenges. Also, Aganga said he was not surprised that some car importers were resisting the automotive policy saying he would block the groups’ action “with every ounce of his being.”

    It is unclear if the ‘rebel group’ would be able to muster enough argument to convince President Goodluck Jonathan over what it has alleged as Stallions’ unfair advantage. It is unclear also if an inquiry would be ordered into the allegations of the group. But from the views of other stakeholders, the policy may just be what President Jonathan needs to rejuvenate the already crippling economy.

    It was conceived with the intention of reducing Nigeria’s dependence on importation of new and fairly used vehicles which currently mops up over N1trillion from the Nigerian economy, but the new automotive policy may have run into troubled waters as giants in the car importation business are over allegations of favoritism and insider trading.

    Six auto dealers including; Elizade Motors, Globe Motors, Coscharis Nigeria Limited, CFAO Motors, SCOA and Toyota Nigeria Limited acting under the Auto Manufacturers’ Representatives Group in Nigeria have protested vehemently against the new policy which was approved by the Federal Executive Council ( FEC) on October 2.

    In a petition sent to President Goodluck Jonathan which has been generating interesting permutations among the stakeholders, the group accused one of them, Stallion Group of Companies, of having unfair access to the contents of the policy ahead of the announcement thereby creating an unfair competition over others.

    According to documents made available to The Nation, the group have warned that if the new policy is allowed to take-off in its current form, the country would have lost about N134billion in revenue due to a leak of information in the new policy which allowed Stallion Group of Companies to use the knowledge of the content of the policy to its advantage.

    On October 2, 2013, the federal government made public a new automotive policy which if implemented, would encourage local manufacture of vehicles and reduce foreign exchange demand by vehicle importers which currently stands at about N550 billion and create jobs.

    Under the new policy as unveiled by the government, the deadline for the establishment of Form Ms for importation until February 28,2014, under the old tariff was October 3rd. Until October 3rd, those wishing to import Fully Built Units (FBUs) passenger cars paid a duty of between 20 and 30 per cent duty while that of commercial vehicles attracted a flat rate of 10 per cent.

    But under the new policy, the duty on passenger and commercial vehicles were upwardly reviewed to 70 and 30 per cent. What this means is that all importers who opened a letter of credit after the policy deadline of October 3rd would pay a higher duty, while those privileged to have opened on or before October 2nd would pay the old rate.

    In the petition written by the group, they alleged that Stallion Group made use of its privileged information to open letters of credit to the tune of $382 million which covers three years of import for 20,000 cars. The group also alleged that the speed with which Stallion Group opened the letters of credit on October 2nd while the FEC was still deliberating on the policy indicated it did to beat the deadline and gain unfair advantage over others.

    It also alleged that the action was inconsistent with the usual practice of Stallion Group which it was learnt usually opens such credit to the tune of $100million annually. “It is obvious from this that the proposed automotive policy has been compromised and has resulted in providing undue advantage to one single group whose track record as a business entity has been monumentally notorious and whose owners have been deported twice in the last 10 years for economic sabotage,” the group said in the petition.

    The group warned: “ The federal government will be committing a grave error if such a group is giving monopoly over the automotive industry in Nigeria,” while also urging that a fair and level playing field be provided for all the importers to compete.

    To that end, the group wants a review of the policy, the inclusion of representation from stakeholders and the federal government to review the policy and report within six months. They also want to the policy deferred for two years so that stakeholders can continue their on-going feasibility studies into establishing motor assembly plants in Nigeria.

  • ‘Why car importation thrives’

    Vehicles are still imported into the country because car manufacturers are unable to meet local demands, the National Automotive Council (NAC) has said.

    An official of the council, Mr Rashid Bello, ssaid this at the end of Automobile Trade fair, organised by FONTAC Resources Nigeria Limited in Port Harcourt, the Rivers State capital.

    Bello, however, said auto industries have achieved international standard in their productions.

    He urged Nigerians to patronise locally made vehicles to encourage expansion of the companies and job creation and phase out of imported vehicles, especially used vehicles.

    “We have acquired the technology for vehicle manufacturing in Nigeria and I make bold to say that each of the eight manufacturing plants produce vehicles that are of international standard and specifications.

    “The only difference between the local and foreign built vehicles is the local content value of the vehicles. In his explanation Bello said, “for every single foreign car that you are buying, you are taking money from our own economy to another economy, you are taking jobs away from your own people and you are empowering other foreign national, you are killing your own economy, and building the economy of other people.