The federal government is planning to ban importation of used vehicles, popularly known as ‘Tokunbo’ into the country.
This move, the government said, is critical in a bid to revitalise Nigeria’s automotive industry and bolster economic growth.
To this end, the National Automotive Design and Development Council(NADDC) is driving this initiative, which aims to encourage local vehicle manufacturing and reduce the country’s reliance on imported used vehicles.
Speaking on ‘Where Nigeria’s Automotive Policy’ on Channels Television, the Director-General, NADDC, Mr Joseph Osanipin, said, the council’s effort to restore some of the vehicle manufacturing companies has led them to begin work on legislation and hopes that it can be turned into an act that will give legal backing.
Furthermore, the NADDC boss said there have been discussions with some of the vehicle manufacturing companies about coming back into the country.
However, he said, these vehicle manufacturers wanted to know how they could get components replaced.
“Who will supply us with tyres, brake pads, windscreen, and other parts?” So these are some of the things they want on the ground before coming,” he stated.
Osanipin also stated that the council is working hard to improve the auto policy, with the lawmakers as investors wanting to know the stance of the government on the import of used vehicles.
“We are adding two to three sections to the auto policy. For instance, some investors want to know the stance of the government on the import of used vehicles.
“The major problem we have in Nigeria is the issue of the import of used vehicles. Investors wanted to know the position of the government on the issue of used vehicles.
Nowhere in the world does auto develop by importing used vehicles into the country.
“When you go to China, they don’t bring in used vehicles. Go to South Africa; they don’t bring in used vehicles. So we are going to make decisions concerning used vehicles.
“It is a challenge, and the government is not shying away from it. And that is why the government is looking into an auto-credit scheme. In a developed economy, no one buys vehicles 100 per cent of the time, apart from us Nigerians. They don’t have 100 per cent cash before starting to drive the vehicle. They survive on credit, and for us, we need to develop on those aspects,” he pointed out.
Speaking on the potential of the auto sector, Osanipin said, the potential is huge, and “sometimes most of us downplay its potential. When you look at countries in Europe and the one with the largest economy, then you call Germany. They are there because of their cars.
“You see what China is doing, and they are there because of their auto. Japan is one of the biggest economies in the world because of its auto industry. When there was a meltdown between 2008 and 2009, the first sector the USA cared about was auto. Which tells you that the potential there is huge.
“And so in the auto sector in Nigeria, we can develop it to the point that it is going to rival oil in terms of revenue generation.”
