(Ecofin Agency) - Yemi Osinbajo (pictured), Vice President of Nigeria, announced yesterday the government will now only buy locally assembled cars to support the automotive industry.
The official says the government will adopt a policy in that regard to further support its decision to reduce the number of used vehicles in its fleet. However, because of the high cost of transport, due in particular to the removal of subsidies, and the increase in fuel prices, the authorities are considering reducing customs duties on used vehicles from 35% to 10%. As a reminder, customs duties had been increased significantly in 2013 to prevent the entry of used vehicles into the local market, but the strategy has failed to stimulate local production.
“At the current rate of production, we will not meet the serious national needs, which means higher prices of vehicles and greater strain on other sectors of the economy that depend on transportation,” Yemi Osinbajo said.
Official data showed that the annual demand in the country is about 720,000 vehicles while the local industry only produces 14,000.
Moutiou Adjibi Nourou