Nigerian auto industries facing low patronage
Despite the fact the NTM still has its lines sound for assembling modern trucks, the company has had stiff competition from companies bringing in FBU vehicles. The duty differential of 5% between a CKD and FBU would only encourage importation because it is more profitable for now. Lack of control on Tokunbo trucks has posed […]
Despite the fact the NTM still has its lines sound for assembling modern trucks, the company has had stiff competition from companies bringing in FBU vehicles. The duty differential of 5% between a CKD and FBU would only encourage importation because it is more profitable for now. Lack of control on Tokunbo trucks has posed a challenge because if you take a look around many are beginning to believe buying second hand goods is better- it is pathetic. Federal Government’s attempt to control this sector is often heard but nothing gets done. When FG can’t enforce policies such as the Enabling Act of Mr President which directs government MDAs to procure Nigerian assembled vehicles, if the specifications are not within the range then FBUs could be considered. Still a lot of the government’s MDAs have no respect for the Enabling Act by Mr President. Even though NTMs capacity utilization was at 15% in 2008 and had a turnover of almost N4billion still they were at a loss. In spite of this, Ibrahim Bayero, Managing Director of NTM says “we haven’t given up.”
Recently newspaper such as BusinessDay and Vanguard have recently published that this FG will be considering sanctions to be meted on Government MDAs for not complying with the rule of law according to the Minister of State for Trade and investment, Mr Samual Ortom.
According to another report, he said, “We have met with the stakeholders in the auto industry and they have come up with a position paper which we are looking into,” adding that the quest for foreign made goods is a mark of indiscipline which must be tackled.
How much it will be tackled is still yet to be seen. In Nigeria, it is easier said than done because the problem doesn’t rest on government alone but the rest of Nigerians at large. This includes the motor mechanic, the banker and even the civil servant.