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Automobile policy impacting negatively on revenue, NPA boss laments

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Automobile policy impacting negatively on revenue, NPA boss laments

The Nigerian Ports Authority (NPA) on Thursday said the revenue accruing from car importation into the country dropped by 20 percent this year, a fallout of the Federal Government’s Automobile Policy.

The NPA warned that the drop in the revenue was an indication that the government’s overall revenue might be affected negatively, and called for an urgent review of the policy in order to reduce subsequent losses.

The automobile policy, which raised import duties on cars, was introduced in 2013 by former President Goodluck Jonathan to revive the ailing Nigerian auto industry, encourage local manufacturing of vehicles and discourage importation of cars.

The Managing Director of NPA, Hadiza Bala-Usman, told the House of Representatives Committee on Ports, Harbours/Waterways that the policy had led to a revenue loss of 20 percent.

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Bala-Usman, who appeared before the committee to speak on the Internally Generated Revenue of the NPA for 2017 and the projections for this year, said the policy had not achieved its objectives, adding that the agency continued to lose revenue from car importation.

“We have written Mr President on this policy and we will continue to defend our position that it (policy) should be reviewed, because the government runs the risk of losing both ways.

“We have recorded a drop in revenue by 20 percent. How many cars are being manufactured and how many Nigerians can really afford to buy brand new cars?

“So, the implication is that while the government is losing revenue on importation, the manufacturing or assembly plants are not achieving the aims of the policy,” She said.

 

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