Only N16b NAC Levy Remitted In 14 Years | Independent Newspapers Limited
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Only N16b NAC Levy Remitted In 14 Years

Posted: May 20, 2015 at 1:02 am   /   by   /   comments (0)

By Andrew Airahuobhor –  Lagos


For the 14 years Nigeria Customs Service (NCS) collected two percent National Automotive Council (NAC) levy on vehicle imports into Nigeria from 1993 to 2007, only about N16 billion was accounted for. Part of which is being used to grant loans to companies investing in the auto industry.

Director, Industrial Infrastructure, Engr. Kolapo Adetoro who disclosed this on Tuesday during a Townhall Meeting in Lagos, said, contrary to claims that more than N500 million accrued to the NAC within the period, only about N16 billion was recorded.

Nigeria Customs Service (NCS) is responsible for collecting Customs and Excise duties and other charges on international trade, including two percent for National Automotive Council (NAC).

Adetoro said all the funds have been moved to Bank of Industry (BoI), and nothing is directly disbursed by NAC, adding that once feasibility study of any company that desires to produce parts locally is approved, the BOI grants loans to assist them develop.

He said: “Peugeot Automobile was given loan of N2 billion to retool. Innoson Technical received N1 billion as part of auto development fund.”

“Dunlop Tyre was given N2.5 billion for production in Nigeria. Within few months, there was a sectoral policy that reduced duty on importation of tyres. That was why Dunlop could not pay back its debt coupled with the issue of epileptic power supply, which made the company spend N200 million to buy diesel within the period and went under”, he added.

He said the company is planning to come back because rubber, which is basic raw material is available in the country and that Nigeria has no business importing tyres.

He noted that Michelin was given loan, but could not even start manufacturing. He also said military including Army, Navy and Customs were also given loan of N3.8 billion to buy made-in-Nigeria vehicles.

According to Adetoro , a major factor that has militated against the development of the auto sub-sector has been inadequate capitalization and funding.

He emphasised that apart from working capital requirements, a lot of foreign exchange is needed because currently, more than 70 percent of the sector’s material inputs are imported, adding that the current high interest rate charged by Commercial banks makes long – term loans unattractive.