NIGERIANS, who thought 10-year-old used cars were too old, unsafe and mere junk, will see worse contraptions on our roads with the Federal Government’s extension of age imported used vehicles to 15 years. The decision is baffling; it lacks all considerations that informed earlier positions.

When the age of imported vehicles was pegged at 10 years, older vehicles still got into Nigeria. What will happen when 15-year-old scraps are allowed? The environment is already littered with these vehicles, most of which look like they were taken straight from junkyards to Nigeria.

Their safety standards have been a major concern for the Federal Roads Safety Corps, FRSC, which has statistics that support the contributions of these vehicles to accidents on Nigerian roads.

How did government reach decisions that are at variance with the Presidential Committee on the Review of Tariffs and Fiscal Incentives in Nigeria, which submitted its report two months ago?

The committee asked government to peg age of imported cars at five years, commercial vehicles at seven years and ban vehicles that are 10 years old. Government decided to allow vehicles that are up to 15 years old into Nigeria.

Other items government took off the import prohibition list are tooth-picks, furniture and  textiles.
While the committee suggested that, “Government should require that all brands of vehicles for which more than 5,000 units are imported annually into the country should be assembled locally, either by setting up a factory in Nigeria or partner with existing plants on contract manufacturing,” government is silent on this recommendation.

Perhaps, more immediately damaging to local manufacturers is the lifting of the ban on textiles. The committee recommended  total ban on importation of textiles that are produced locally. Government instead lifted the ban, a move that endangers the ability of local manufacturers to repay loans the Bank of Industry, BoI, granted them under the Cotton, Textile, Garment Revival Fund, a government initiative to revive textile manufacturing.

BoI announced last month, that under the scheme,  it had granted loans worth about N30 billion. The new government policy threatens local manufacturers’ ability to remain in business.

It is difficult to see how these measures will address the difficulties of the economy, especially the revival of local manufacturing. Government is throwing its doors open for imports at a time local industries are groaning under the weight of poor infrastructure, particularly electricity supply that is simply abysmal.

These  industries are to compete against  industries in countries that do not have our constraints.
Nigeria will also fund the massive imports that will follow. Where will she find the money at a time the foreign reserves have been depleted?

We expect protection of local industries. Every country protects local manufacturers. The reasoning that the lifting of the ban will curb smuggling is a poor excuse. The dangers of turning Nigeria into a junkyard, a dumping ground for all sorts of goods and the negative impact of the decision on local manufacturing should make government to reconsider its position.