National Trucks MD offers recipe for healthy auto industry

Full implementation and monitoring of the Nigerian Automotive Industry Development Plan (NAIDP), increased patronage of locally assembled vehicles, and immediate commencement of the National Vehicle Identification System (NVIS) are necessary steps towards achieving a vibrant automotive industry.

This was the view expressed recently by the Managing Director of National Trucks Manufacturers (NTM), Kano, Mr. Ibrahim Bayero, while reviewing the NAIDP which took effect mid-2014.

Bayero argued that an exhaustive implementation of the contents of the policy, backed with biannual reporting on the progress made, would return the auto manufacturing sector to the part of sustained growth and development.

The NTM Chief Executive urged the various tiers of government to ensure that all official vehicular procurements, including those by ministries, departments and agencies {MDAs}, as well as contractors handling government projects, benefit the auto plants in Nigeria.

Contractors undertaking road construction and other projects, he argued, should not be encouraged to import vehicles that can be produced locally.

“Companies with Federal, State or local government contracts should be directed to patronise locally assembled vehicles and not given waivers for import of vehicles. For instance, road construction companies can source majority of their vehicle requirements locally, Bayero stressed.”

The NTM CEO also recommended concessionary access to foreign exchange by stakeholders with secured contracts for government level supplies that will be strictly monitored to ensure compliance.

He explained that the National Vehicle Identification System, which has been in the works for some time now, would create a database for the registration and monitoring of all vehicles in the country, and eliminate not only junk second-hand (tokunbo) vehicles, but also the possibility of under-payment or total evasion of duties on imported vehicles.

“This system will require any person or company importing new or second-hand vehicles into Nigeria to be registered on the database.

“Once the vehicle reaches Nigeria, the importer will be responsible for making all duty and tax payments and then inputting the details of the vehicle (engine, chassis numbers or VIN plates) as well as evidence of the port of import and duties paid on to the database.

“The other government agencies like the Customs will also be checking and verifying these details.

“Before the vehicle can be registered with Federal Road Safety Corps and Vehicle Inspection Organization, the details will have to be cross-checked before issuance of the vehicle plate number and vehicle licence.

“In this manner, there will be proper checks in place to ensure that all vehicles are imported through the proper channels and the proper duties are paid. Without the full implementation of this vehicle registration system, we doubt that these measures will have any positive impact on the reduction of importation of tokunbo vehicles’.