Nigeria: Sales Glut - Auto Dealers Task Federal Gov On Flexible Policies

Nigerian auto dealers are calling on the federal government to implement more flexible policies to address the current sales glut in the industry. The dealers are struggling to sell vehicles due to the high import duty payable on imported vehicles, which has increased from 20% to 70% - 35% duty and 35% levy.

The National Automobile Policy (NAP) introduced by the federal government aims to encourage local production of vehicles, but auto dealers argue that the policy is not feasible yet, as local manufacturing is still in its infancy. They suggest that the government should reconsider the implementation of the tariff increment until local automobile manufacturing companies start producing vehicles in Nigeria.

The Chairman of the Port Consultative Council, Otunba Kunle Folarin, advises the government to handle the policy like an import substitution policy, warning that discouraging importation without a viable alternative could drive the industry underground.

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