Dealers hail NPA boss, Hadiza Usman for calling for review of auto policy
A number of automotive dealers in Lagos have advised the federal government to consider the recent appeal by the Managing Director of Nigerian Ports Authority (NPA), Hadiza Bala Usman for the review of the current automotive policy in the country.
Some fairly used car dealers at Berger along Apapa-Oshodi Expressway who spoke to Business Hilights said since the auto policy started, business has tumbled as they find it hard to import cars using any Nigeria sea port due to doubled duty paid value on cars.
Some said what they manage to do now to remain in business is to go for accidented cars, repair them and sale with very poor returns at the end.
It would be recalled that the prevailing Auto Policy of the federal government hiked DPV to over 70 per cent which cannot encourage any reasonable car importer to venture because nobody can buy such cars after clearance due to high cost.
Usman, who addressed the House of Representatives Committee on Ports and Harbours for the 2017 budget evaluation and 2018 budget defence of her agency, had called for the review of the current automotive policy in the country, saying the policy, which increased the tariff on imported fairly used vehicles into the country was making government lose revenue due to drop in car imports.
She recalled that “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 per cent. 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.”
Besides, the drop does not mean that cars are no more entering Nigeria, but through smuggling via land borders which means loss of revenue for the country.
Business Hilights recalls that only the Federal Operations Unit (FOU) of the Customs Zone A Command, Ikeja have a monthly average seizure of smuggled vehicles running into scores with high duty paid value which suggests massive loss of government revenues after all.
Aside calls for the review of auto policy, Usman also sought the intervention of the House Committee chaired by Patrick Asadu on the proposed 50 per cent rebate for the NNPC.
According to her, “The Nigerian Ports Authority has been directed to provide 50 percent rebate on all PMS vessels that are coming into Nigeria, so we are concerned about that 50 percent rebate because it was instituted and suspended in June 2015 and within that period while it was on (2011-2015) there was no reduction in the price per litre of PMS, so, who enjoy that rebate?
“While the rebate was on, the Federal Government lost 50 percent of the value of the revenue that ought to be paid for vessels coming into the ports. We questioned that and we need to have clarity on that.
“What NPA lost as a result of 50 percent reduction of charges on PMS vessels between 2009 to 2015, $234.4 million and N3.2 billion while in 2018, $561.2 million and N34.2 million would be lost.
“Now that it has been reintroduced, we need to see that recognition within the PPPRA templates, within the price for a litre of fuel. We need to see that, to enable Nigerians appreciate and recognise the value of the rebate. We cannot keep on giving a rebate without it being reflected in price of petrol, we are concerned about that.”
Continuing, Usman decried that “We have also been given a directive to collect payments in naira as opposed to payments in dollars, the marine industry payment is dominated in dollars, so, even if Nigeria collects the revenue in naira, Nigerians will not benefit from it because the shipping trade is done in dollars.
“Another curious leg to it is that NNPC is the sole importer of PMS, so, NNPC already from 2012 till date, NPA collect payments from NNPC in naira, if the NNPC is the sole beneficiary, so why are you agitating to collect revenue in naira, since you are the sole importer, you are already enjoying that concession rate because you are government, and you said you are the only one that imports, so why are you now asking for government to collect from others in naira.”
