Transport
Stakeholders Comment On National Automotive Industry Dev Plan
The Federal Government
Pronouncement on the National Automotive Industry Development Plan has been generating a lot of reactions from stakeholders in the country.
The stakeholders mostly car dealers said the government policy on importation of vehicles into the country is too hasty and could have been carried out in a gradual process so that they would not make mockery of the whole plan.
According to them, the policy is for the interest of the nation but reserved their fears it could be well implemented, and added that it would not affect their second-hand car business.
They, however, called on the federal government to ensure every necessary modalities are put on ground before the implementation of the Policy to avoid any loophole.
A salesman with Yarsuda Motors Nigeria Enterprise in Port Harcourt, Umaru Adamu said the government’s new policy on importation of vehicles into the country would not affect their business but expressed worry that every thing had a process before implementation and pointed out that the federal government idea was good but there should be a transition before the implementation.
“Manufacturing cars in Nigeria will bring competition as well as bring down cost of vehicles. It is better for Nigeria I will advise the government to subsidise so that Nigerians could afford to purchase cars of their choice,” Umaru posited.
He, however, noted that when the policy comment fully implemented, it would be difficult for one to buy a new car as second hand cars ‘Tokumbos” are durable their spare parts are always available unlike some new cars and experienced auto mechanics to repair them in case of any fault is also difficult to get in Nigeria.
“It is a good idea but lets follow process for the policy to work better in Nigeria.”
Another car dealer, Azubuike Donald said already duty cars have started complying with the government policy of 35 per cent, and said the policy was good if it would be well implemented because currently there were so many new cars on sale but most people prefer and patronise fairly used cars because of their durability.
Donald noted that the policy would not affect their business and lauded the government that the policy if well implemented would generate revenue and stop illegal smuggling of vehicles into the country, and more so would benefit the masses.
In his reaction, Ibrahim Addo of Kwajaffa motors maintained that the policy would only affect some dealers on second hand cars, depending on the understanding of the business.
Addo said car dealers and customers despite the policy would decide where to buy their cars depending on choice.
It would be recalled that the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) has described the federal government policy as inimical to the over all interest of Nigerians, describing it as anti-people.
According to the National President of the group, Lucky Amiwero said, “The automobile policy is actually inimical to the growth of the nation and we are not in support of it, in the said policy, there are some indexes that are not too comfortable for growth.”
Amiwero said the assembly plans that promised to manufacture made in Nigeria cars are yet to put structures on ground, stressing that it is wrong for government to start collecting the 35 per cent on duty as well as the 35 per cent levy that is expected to commence in January 2015.
Why are we increasing that tarrit to 35 per cent when no country in the world has such high charge and it means we are going to have a problem in the transport system in the country.”
We are saying that Kia, Toyota and others are coming to manufacture vehicles in the country, but where are the plants situated and they have started implementing the 35 per cent duty,” he lamented and added that with the policy in place, prices of imported cars will be very high and such would affect the sector negatively.
A source told our correspondent that some auto manufacturing companies in Nigeria have commenced production of made-in-Nigeria Cars.
The Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, recently led his team to the Headquarters of Huawei, a famous information and communications technology company in Shenzhen, China, where he discussed opportunities embedded in Nigeria Customs Service Trade Modernisation Project.
This was disclosed in a press release made available to our correspondent in Lagos by the National Public Relations Officer (NPRO) of the Service, CSC Maidawa yesterday.
According to the release, the CGC’s visit to Huawei Headquarters was part of his official visit to the People’s Republic of China for the 6th Global AEO Conference that took place in the city of Shenzhen between Wednesday, 8th May, Friday, 10 May, 2024.
Stating the purpose of his visit to the company’s office on behalf of his team, CGC Adeniyi said, “We are also delighted to associate with the Global Leader Technology Services through the Team of Trade Modernisation.”
It would be recalled that the Service had, during the Huawei Connect 2023 held in Shanghai in October, 2023, expressed readiness to deploy some of the company’s latest products for use in its trade modernisation project.
The CGC, who urged Huawei’s company leadership to sustain their digitalisation services to NCS, also sought their support to collaborate with the Nigeria Customs Service to maintain their transformative journey with the company.
On his part, Xujing Xu, the Huawei Company’s Vice President of Smart Transportation, welcomed the delegation of the NCS led by Adeniyi and the Management Team of the Trade Modernisation Project (TMP) Limited, led by Chairman Saleh Ahmadu.
He expressed confidence that their collaboration will benefit all parties involved, noting that “the foundational work for this transformation is already underway”.
The TMP Chairman, Saleh Ahmadu, during his address, said Huawei is living up to expectations to deliver its mandate under the auspices of Trade Modernisation Project Limited.
He appreciated the support accorded to him by the CGC and his management team towards the success of the NCS Trade Modernisation Project.
In his bid to upscale the level of NCS modernisation, the Comptroller-General of Customs, alongside members of the Trade Modernisation Project led by Chairman Saleh Ahmadu, visited Lantan Port to witness the level of automation and technological solutions provided by Huawei and other tech partners.
In a related development, a training programme on Trends and Digital Solutions for Customs officials and the TMP team was organised by Huawei the same day, which focused on equipping officials with the necessary skills to navigate the digital landscape of modern trade.
The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.
Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.
By: Chinedu Wosu
President Bola Ahmed Tinubu has said the decision of his administration to embark on a National Single Window (NSW) platform is to boost the country’s Ease of Doing Business Index as rated by the World Bank.
The NSW is an electronic portal that links all agencies and operators within the country’s supply chain to an integrated platform, which is to be domiciled at the Federal Inland Revenue Service (FIRS).
Membership of the steering committee is drawn from the Nigerian Ports Authority (NPA), Nigeria Customs Service (NCS), Federal Airports Authority of Nigeria, (FAAN), Federal Inland Revenue Service, (FIRS), National Agency for Food and Drug Administration and Control, (NAFDAC), Nigerian Maritime Administration and Safety Agency, (NIMASA), Central Bank of Nigeria (CBN), Standards Organisation of Nigeria (SON), and some key private sector operators, which include importers, exporters, shipping lines, freight agents and banks.
Speaking while inaugurating the steering committee for the project at the Presidential Villa, Abuja, the President also said the platform is aimed at eliminating all forms of encumbrances to trade and commerce with a view to optimising revenue generation and ultimately boost the inflow of both local and foreign direct investment into the country.
The President, who decried the bottlenecks that characterise the country’s import, export and other supply chain activities, noted that the project is another milestone by his administration, saying the project would boost investment inflow by removing all forms of trade barriers in the import and export value chain.
“Nigeria’s import and export processes are bureaucratic, which lead to delays at the seaports. Such inefficiencies have adverse impacts on local businesses in the country and serve as potential impediment for foreign direct investments.
“To eliminate these challenges, today, we are launching the National Single Window project.
“The National Single Window Project is intended to enhance revenue generation through imports and exports and accelerate economic activities in the country.
“This project is a bold initiative to simplify and streamline our import and export clearance processes by eliminating bottlenecks, and harnessing best-in-class technology. This will result in reduced costs of doing business and position us to attract more foreign investment.
“The National Single Window Project will consist of four key pillars, namely: Single Window for Imports, Single Window for Exports, Port Community System and Scanning Services across our sea, air and land borders.
“The Project is not merely a technological advancement, but a strategic initiative to increase revenue generation by consolidating import and export related procedures into a unified electronic platform.
“The platform will serve as a single portal for the submission and approval of all import and export related documents, as well as a centralised payment system. It will be integrated with the various systems in the Ministries, Departments and Agencies (MDAs) involved in the import and export processes.
“The National Single Window project is a top priority for this Administration. As a result, I am directing all relevant Ministries, Departments and Agencies working on similar systems or information technology implementation projects to stop doing so in silos but align and consolidate such projects under the National Single Window Project’s scope.
“Today, I am also inaugurating the National Single Window project steering committee. The primary objectives of the Steering Committee are to provide support, oversight, strategic direction, and guidance to ensure the effective implementation of the project.
“You are entrusted with the responsibility of aligning this project with this government’s revenue enhancement objectives, setting the stage for a more efficient and responsive economy.
“I expect nothing short of excellence from this committee. You are the driving force behind the success of this crucial project, and your commitment and dedication will determine its outcome.
“Our collective effort will shape this project and play a key role in shaping the future of trade and commerce in Nigeria. I urge you to approach this task with a sense of purpose, unity, and a shared commitment for the betterment of our nation”, the President said.
Meanwhile, Chairman of FIRS, Zacch Adedeji, who also spoke at the event, thanked President Tinubu for the project and approving FIRS and the Nigeria Sovereign Investment Authority (NSIA) as the project’s implementing agencies and financial managers.
Adedeji said the project aligns with the President’s commitment to stimulating Nigeria’s economy through enhanced trade facilitation and a bold step towards realising the country’s immense economic potential.
“As we strive towards achieving sustainable economic growth, we must embrace high-impact projects such as the National Single Window. By simplifying the government trade compliance process through a cutting-edge digital platform, we will unlock a myriad of economic benefits.
“This initiative will serve as a catalyst for achieving an average Gross Domestic Project (GDP) growth rate of seven per cent annually, propelling Nigeria to new heights of prosperity. The National Single Window is not just a technological advancement; it is the gateway to a more connected, efficient, and transparent system.
“By integrating our seaports, government agencies, and key stakeholders, we will create a seamless ecosystem that facilitates trade, saves time for businesses, and opens up a world of opportunities.
“From providing access to education and healthcare to enabling small businesses to reach global markets, digital connectivity is the key to unlocking Nigeria’s true potential.
“The heavy costs, delays, and inefficiencies at our ports has been a constant burden. It is estimated that a staggering $4 billion annually is lost due to these inefficiencies.
“By addressing revenue leakage prevention and facilitating effective trade, we will reclaim these lost resources and channel them towards the betterment of our society.
“Steering Committee, National Single Window 2 Paperless trade alone is projected to bring an annual economic benefit of around $2.7 billion; a testament to the transformative power of this initiative.
“The success stories of countries that have embraced Single Window systems are evident. Singapore, Korea, Kenya and Saudi Arabia have all witnessed significant improvements in trade efficiency after implementing similar initiatives. It is now Nigeria’s turn to join the ranks of these progressive nations and reap the rewards of a streamlined, digitised trade environment.
“The National Single Window is not just about facilitating trade, it is also a powerful tool for expanding our tax base and capturing the informal e-Commerce sector. By providing a unified, modern digital platform for expeditious paperless cargo clearance and logistics, we will bring more businesses into the formal economy, ensuring that everyone contributes their fair share to our nation’s development.
“Moreover, by linking the Nigerian National Single Window with other African nations, we will expedite cargo movement and optimise intra-Africa trade.
“This will position Nigeria as a leader in regional trade facilitation, fostering stronger economic ties with our neighbors and creating new opportunities for growth and collaboration.
“The current international trade environment is complex, involving disparate systems and requiring an average of 40 documents per transaction. Nigeria’s lack of a comprehensive trade facilitation system has led to bottlenecks, corruption, port delays, decreased revenue, and a negative business environment. The National Single Window is a decisive response to these challenges.
“By improving trade facilitation, revenue generation, economic growth, transparency, security, and streamlined processes, we will transform Nigeria into a global trade powerhouse”, the FIRS boss explained.