There is palpable fear in the nation’s automobile industry and this has to do with the unlikely passage of the controversial auto policy bill by the National Assembly before May 29, 2015.
Tagged: “Nigerian Automotive Industry Development Plan (Fiscal Incentives, Assurances and Guarantees) Bill”, it is meant to strengthen the Nigerian automotive industry development plan and promote a sustainable and competitive automotive industry. It is an Executive bill.
The bill was presented at the National Assembly in June 2014 and seeks to give teeth to government's auto policy and give legal backing to investments in the production and assembly of cars and tyres in Nigeria as well as legalize provision of tariff incentives and income tax reliefs on all automotives and income tax reliefs on all automobile and automotive components.
Even though it has passed Second Reading at the Senate, it is yet to get the same attention at the House of Representatives. Shipping Position Daily confirmed from industry and National Assembly sources that the possibility of passing the Bill is even more remote now than about six months ago when the bill enjoyed a good showing.
However, the director general of the National Automotive Council (NAC); Aminu Jalal was optimistic that the automotive bill would be passed and signed into law after the general elections.
He said: “The new law, which will give a legal backing to the auto policy of the Federal Government, should be ready in April. The bill has passed the second reading”.
But a source who is close to Senate committee on Industry hinted our correspondent that, “the National Assembly is not considering passage of the National Automotive Policy Bill, and many bills for now”.
“ There are many other bills, but you know that everyone is campaigning now, after the elections in April, we will resume and consider the 2015 appropriation bill, which is more important than the auto policy bill and any one at that”, he added.
An industry player told our correspondent last week that another thing that is causing jitters is the possibility of a regime change.
He specifically referred to the hint that was given last week in Akure, Ondo state by the vice presidential candidate of the All Progressive Congress (APC); Prof Yemi Osinbajo to the effect that, the party will effect an amendment to the policy if voted into power. Prof Osinbajo had said that the party would reduce tariff on imported vehicles.
Shipping Position Daily recalls that, while considering the auto policy bill for a second reading late last year, the Senate President, David Mark had expressed worries about the state of electricity generation in Nigeria and noted that if the automotive industry was going to run on generation for 24 hours, it could not compete internationally.
His words: “The bill is good on paper. This will remain absolutely good on paper but in practice, it will be difficult.
My suggestion is that this is an excellent bill, we would pass it, but we should let the government know that for the bill to succeed, a few things will have to be put in place.
“There is no doubt in our minds that we want to bring back our automotive industry because it is about the creation of employment.”
But, nevertheless, the Senate passed it for the third and final reading, but the House of Representatives is yet to pass it at all.
A source at the National Automotive Council who pleaded anonymity also confirmed to our correspondent that the Council is worried about the danger of the bill not being passed before May 29, 2015.
The full implementation of the policy, which is expected to bring the tariff to 70%, is also expected in May, having been shifted about four times by the Federal Government. http://shippingposition.com.ng/article/uncertainties-over-auto-policy-nass-defers-debate-till-after-elections
Tagged: “Nigerian Automotive Industry Development Plan (Fiscal Incentives, Assurances and Guarantees) Bill”, it is meant to strengthen the Nigerian automotive industry development plan and promote a sustainable and competitive automotive industry. It is an Executive bill.
The bill was presented at the National Assembly in June 2014 and seeks to give teeth to government's auto policy and give legal backing to investments in the production and assembly of cars and tyres in Nigeria as well as legalize provision of tariff incentives and income tax reliefs on all automotives and income tax reliefs on all automobile and automotive components.
Even though it has passed Second Reading at the Senate, it is yet to get the same attention at the House of Representatives. Shipping Position Daily confirmed from industry and National Assembly sources that the possibility of passing the Bill is even more remote now than about six months ago when the bill enjoyed a good showing.
However, the director general of the National Automotive Council (NAC); Aminu Jalal was optimistic that the automotive bill would be passed and signed into law after the general elections.
He said: “The new law, which will give a legal backing to the auto policy of the Federal Government, should be ready in April. The bill has passed the second reading”.
But a source who is close to Senate committee on Industry hinted our correspondent that, “the National Assembly is not considering passage of the National Automotive Policy Bill, and many bills for now”.
“ There are many other bills, but you know that everyone is campaigning now, after the elections in April, we will resume and consider the 2015 appropriation bill, which is more important than the auto policy bill and any one at that”, he added.
An industry player told our correspondent last week that another thing that is causing jitters is the possibility of a regime change.
He specifically referred to the hint that was given last week in Akure, Ondo state by the vice presidential candidate of the All Progressive Congress (APC); Prof Yemi Osinbajo to the effect that, the party will effect an amendment to the policy if voted into power. Prof Osinbajo had said that the party would reduce tariff on imported vehicles.
Shipping Position Daily recalls that, while considering the auto policy bill for a second reading late last year, the Senate President, David Mark had expressed worries about the state of electricity generation in Nigeria and noted that if the automotive industry was going to run on generation for 24 hours, it could not compete internationally.
His words: “The bill is good on paper. This will remain absolutely good on paper but in practice, it will be difficult.
My suggestion is that this is an excellent bill, we would pass it, but we should let the government know that for the bill to succeed, a few things will have to be put in place.
“There is no doubt in our minds that we want to bring back our automotive industry because it is about the creation of employment.”
But, nevertheless, the Senate passed it for the third and final reading, but the House of Representatives is yet to pass it at all.
A source at the National Automotive Council who pleaded anonymity also confirmed to our correspondent that the Council is worried about the danger of the bill not being passed before May 29, 2015.
The full implementation of the policy, which is expected to bring the tariff to 70%, is also expected in May, having been shifted about four times by the Federal Government. http://shippingposition.com.ng/article/uncertainties-over-auto-policy-nass-defers-debate-till-after-elections
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