How Nigeria’s Auto Policy Cost Govt. 20% Of Car Importation Revenue
So, the automotive policies of the government have affected the pockets of the government.
Two years ago, the federal government introduced a new auto policy that saw the import tariffs raised by 35%.
That reduced the number of cars imported into the country and by implication also reduced the revenue that previously accrued from auto imports by 20%, according to Nigerian Ports Authority, NPA.
The NPA warned that the revenue dip was a bad omen for the government’s overall revenue net and called for the urgent review of the policy.
The automobile policy was introduced by the government to encourage local car production/assembly plants, while cutting importation and raising import duties.
The Managing Director, NPA, Hadiza Bala-Usman, told the House of Representatives Committee on Ports, Harbours/Waterways that the policy had led to the 20% revenue loss.
Usman said that contrary to the government’s expectations, the policy had not achieved its objectives, while on the other hand, the agency continues to lose money.
“We have written Mr President on this policy and we will continue to defend our position that it (policy) should be reviewed, because the government runs the risk of losing both ways.
“We have recorded a drop-in revenue by 20%. How many cars are being manufactured and how many Nigerians can really afford to buy brand new cars?
“So, the implication is that while the government is losing revenue on importation, the manufacturing or assembly plants are not achieving the aims of the policy.”
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