Last week, the media was abuzz with the news that the federal government has placed a ban on the importation on fairly used vehicles, popularly known as "Tokunbo", the Minister of Industry Trade, and Investment, Olusegun Aganga, Thursday said the new automobile policy was not aimed at an outright ban on the importation of used vehicles.
The document, which is tagged: “New Automobile Industrial Policy Development,” was on Wednesday approved by the Federal Executive Council (FEC).
But less than 24-hour after the policy framework was unveiled, there have been public outcry that it would lead to an outright ban on the importation of used vehicles into the country.
But less than 24-hour after the policy framework was unveiled, there have been public outcry that it would lead to an outright ban on the importation of used vehicles into the country.
Clarifying government's position on the matter, Aganga said: “This policy will not result in the banning of the importation of vehicles in Nigeria but focus on promoting investments in affordable made-in-Nigeria vehicles that will in future minimise the importation of vehicles.”
The minister explained that what government had done was to raise tariff on importation with a view to discouraging the influx of used vehicles into the country, while also encouraging local manufacturing.
According to him, no responsible government would ban importation of used cars without putting in place viable alternative.
“The importation of Tokubo cars will not be a major threat to the plan. Production of vehicles is in stages and involves a long process. You do not remove a thing without providing a viable alternative.
“We must also continue to make sure that we educate Nigerians to understand that it is cheaper and better to buy a new car that can be serviced locally, than importing a car that after one or two years, you cannot maintain and you lose your money. We are determined to provide alternative for them,” he explained.
On the expected benefits, Aganga added: “In many countries around the world, the automotive industry plays both strategic and catalytic roles in economic development, particularly in employment creation and wealth generation; small and medium enterprises developments (as it relates to auto parts components and services); skills development and technology acquisition."
Source:Punchng
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