NCMDLCA: Epileptic power supply, others bane of auto policy

The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) said the current epileptic power supply in the country is a hindrance to the success of the newly introduced National Automotive Policy.

In a letter sent to President Goodluck Jonathan titled “The economic impact of the new automotive policy and a need to review the implementation in line with global automotive industry standard”, a copy of which was made available to SHIPS & PORTS DAILY, National President of the body, Lucky Amiwero said the present power situation would not allow for production of vehicles that would be affordable in the domestic market.

His words, “With the present energy/power problem, can the assembly plants produce vehicles that can be affordable for domestic market, competitive and exportable considering the cost of production especially if they are run on diesel?

“The government should ask about the present state of the former assembly plants built around the 80s and 90s, the reason for their closure and if the same reason will not affect the new automotive policy. Also, will the cost of Nigerian made vehicles be affordable to common man?

“The policy has created unemployment, revenue loss for the government, private sector and investors. Also, there have been massive diversion of car carrying vessels to neighboring countries.

“If implemented, the 35% levy will make our transport component very expensive as the local assembly plants are yet to produce let alone meet up with domestic demand.

“The policy will also affect the fate of the transportation system in Nigeria that very soon, the movement of persons and goods will be affected by high cost and short supply.”

Amiwero said the policy had led to capital flight and increased smuggling of vehicles into Nigeria from neighboring countries.

“The policy had led to the diversion of cars carrying vessels to neighbouring West African ports as a result of high tarrific of 35% and 70% for new cars,” he said.

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