By GODWIN ORITSE

THE Association of Tyre Marketers has decried the newly introduced policy on tyre importation into the country saying that “there is no existing local tyre manufacturing plants operating in Nigeria”.

The group also noted that all existing manufacturing firms have either closed down or moved out of the country, leaving behind their import and marketing outlets.

In a statement, the President of the group, Alhaji Issa Kanbi Mohammed, said that the concession rate of five per cent to local manufacturers of tyre as against the 20 per cent Duty payment and five per cent VAT has a disadvantage of 15 per cent import duty payment and five per cent VAT for importers.

He said this   will eventually create extreme monopoly to non existing Local Manufacturers at the disadvantage of other stakeholders in the Tyre value chain.

Mohammed explained that importation of tryes at the rate of five per cent import duty rate by non-existing local manufacturers, will only encourage massive importation by the privilege few that are close to government with the ploy that they operate tyre manufacturing plant, a development that will rubbish the policy as there is no existing tyre plant in the country.

The policy of 5% (per cent) duty for Local Manufacturing Assembly plant, will enable very few that have access to government to stock pile their warehouses at the detriment of other stakeholders in the Tyre value chain, without any commitment to revive the tyre industry.

The group’s president suggested that for the development ,growth and sustainability of the Tyre industry in Nigeria, government should as a matter of urgency set up Joint Project Committee made up of various stakeholders in the tyre value Chain to oversee the initiatives that will bring about such development:

He   said “There is the need to revisit the type of equipment and energy in setting up or revitalising any of the existing plants, as tyre production requires considerable amount of electricity and heat.

“The implementation of energy efficiency measure and modernisation of technology equipment,   establishment of high-efficiency of equipment and optimisation of technological process, which will consequently reduce the electricity and heat consumption in Tyre production

“The government developmental plan needs to address waiver incentive for the components used in the production of Tyre, which is based on global revival scheme that will encourage investing in Tyre industry.

“The development program for expansion of new rubber plantation is imperative, as natural/ synthetic Rubber constitute 45% percent of the overall raw materials for the production of tyres.