The National Automotive Council (NAC) has said that the Federal government has retained the July 1, 2014 date for full implementation of the Nigerian Automotive Industrial Development Plan (NAIDP).

In a statement released during the flag off of the Peugeot 301 production in Nigeria and commissioning of the proposed site for automotive cluster Park at PAN Nigeria Limited, Kaduna.

The Director General of NAC, Engineer Aminu Jalal maintained that there is no going back on the earlier pronouncement for full implementation on July 1, 2014.

Full details of the statement: “Following the space of enquiries from stakeholder, the media and general public, the National Automotive Council (NAC) wishes to confirm that the July 1, 2014 date for full implementation of the Nigerian Automotive Industry Development Plan (NAIDP)  remains sacrosanct; and there is no intention whatsoever to suspend or post pone policy implementation.

The implementation of NAIDP, as published in the Federal Government Officials Gazette No.33 of January 2014, is still on course.

However, it may take up till December 2014 before two critical components of NAIDP are realized. These are the introduction of a nationwide Automotive Credit Purchase Scheme and attainment of the critical capacity by local assembly plants/new in investors to meet estimated national demand.

In view of this, the Honourable Minister of Industry, Trade and Investment, Dr. Olusegun Aganga has invoked a provision in the circular No. BD/FP/DO/09/1/224 OF 29TH February 2014 as clearly provided for the Minister / NAC to extend the waiver of only 35% levy on used vehicle imports from July 1, 2014 to December 31, 2014 in order to manage market condition. It means that used vehicles import at 35% tariff only without 35% levy is extended till December 31st, 2014.

The implementation of all other aspect of NAIDP remain in force as the policy is not all about tariff on used vehicles only. Those who engage in local value added will continue to import new fully built vehicles twice the number they assemble without levy as well. SKD 2 Kits they import at the easiest level of assembly will attract 10% tariff and the CKD kits will attract 0% duty.

Council is hopeful that by January 1, 2015, the local assembly plants would have developed sufficient combined capacity to supply affordable vehicles that can meet national demand.

By then also, the new automotive credit purchase scheme should have come on stream in order to enhance the capacity of Nigerians, who may otherwise buy used vehicles, to now acquire new ones on convenient payment terms. A payment spread over four to five years at single digit interest rate is anticipated.