AAAM warns that the 2020 Finance Bill would be the end of the road for Automotive Investment in Nigeria

The Association of African Automotive Manufacturers (AAAM) has been working with the Nigerian Federal Ministry of Industry Trade and Investment through the NADDC on the development of a fully-fledged motor manufacturing industry, enabled by a comprehensive automotive framework which would assist in the industrialisation of Nigeria. This would be scuppered by the 2020 Finance Bill which sees the Customs Service proposing to reduce levies on motor vehicles for the transportation of persons from 35% to 5% and the reduction of duties for the transportation of goods from 35% to 10%.

A critical element of an automotive policy that will drive industrialisation is to sufficiently differentiate tariffs for locally assembled vehicles from tariffs for imported vehicles; should an acceptable level of differentiation not be in place the industrialisation and growth of the automotive sector will not transpire.

“The proposed automotive policy framework requires that the levies/duties be retained at their existing levels with some refinements. The proposed reduction in levies/duties will thus remove any possibility for Nigeria to industrialise and develop the automotive sector” said David Coffey the CEO of AAAM.

“It is in the industrialisation interest of Nigeria to halt the proposed reduction in motor vehicle levies/duties and to effectively implement the proposed automotive policy. The AAAM offers their full support to the Government of Nigeria in the development and implementation of the automotive policy and ecosystem”, concluded Mr Coffey.

Ends.