The Federal Government has disclosed its intention to impose a 125% import tariff on tokunbo cars and 100% on Fully Built Vehicles (FBV) as well.
This new import tariff, as gathered by Naijauto, will be incorporated in a new Nigeria Automotive Industry Development Plan (NAIDP). And it was made known by Engr. Farouk Umar, Director of Policy and Planning at NADDC during a dialogue session organized for stakeholders on Draft Automotive Bill in the Federal Capital Territory.
Is 125% import tariff on tokunbo vehicles in Nigeria realistic?
The existing Automotive Bill that was passed by members of the national assembly but dismissed by the President, proffered 70% import duty on Fully Built Vehicles and 35% duty on foreign used vehicles.Engr.Umar stated that a new draft Automotive Bill will be resubmitted to the national assembly for deliberation, adding that it will increase tariff value to boost the development of the local auto industry.
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The Nigerian Automotive Industry Development Plan to be amended will be mandating every licensed local assembler across the country to target the creation of 20% local content within three years, and it will begin from the time the reviewed plan is adopted.
While speaking on the fiscal measure, Otunba Niyi Adebayo, Minister of Industry, Trade and Investment pointed out that vehicles and car parts importation used up $8 billion in 2016.
Adebayo further disclosed that 400,000 vehicles were imported that same year, with 75% of the vehicles imported being fairly used and 25% were brand new vehicles or FBV.
The Nigerian market and growing population of the middle class has proven to be the focal attraction for investors with enormous opportunities inherent within the automotive sector
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