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FG May Slash Import Tariff on Cars

Published

10 years ago

October 18, 2015

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Reprieve appears underway for car dealers and buyers following plans by the Federal Government to review its import tariff on vehicles, according to Punch newspapers

This is expected to bring down the cost of new vehicles and increase the tempo of business in the nation’s automotive sector.

According to Punch, sources at the Federal Ministry of Industry, Trade and Investment gave the indication on Sunday that the current 70 per cent tariff on imported cars could get a downward review as a way to force down the prices of vehicles.

Although the National Automotive Design and Development Council, an agency under the ministry, said on Friday that 14 out of the 25 registered automakers had started assembling vehicles in the country, Nigerians have yet to enjoy the expected benefits of the new policy as the prices of vehicles are still high.

Even car dealers have had to adopt different strategies to encourage buyers and boost sales.

The sources, however, said the planned review, which is in tandem with the change mantra of the Muhammadu Buhari-led administration, should not be interpreted as an outright cancellation of the auto policy, which was announced in September 2013.

“It is likely to come in the form of a review of the import tariff on vehicles so as make it easy for people to buy new cars. The decision on the entire auto policy is expected to be part of the economic policy of the government, which will be unveiled as soon as the new ministers settle down,” one of the sources said.

Car prices were increased last year by about 60 per cent shortly after the import tariff went up from 22 per cent to 70 per cent, a situation, which made it difficult for many to buy new cars, just as fleet buyers such as corporate firms have had to cut down on the number of vehicles purchased.

The imposition of the new import tariff, which also affects imported used vehicles, according to the government, is to encourage local assembling/production of vehicles, with the attendant benefits of creating more jobs and boosting the nation’s economy.

A zero per cent was announced as tariff on imported vehicle components (Completely Knocked Down units) and auto assemblers are also allowed to bring in fully built vehicles at very low import tariff.

But some stakeholders, including major dealers such as Toyota Nigeria Limited, had complained about the timing of the policy and the seeming poor state of the needed infrastructural facilities for the sustenance of local assembly plants.

Mr. Oseme Oigiagbe, chairman of the automotive group, Lagos Chamber of Commerce and Industry, confirmed that the group had written to the Presidency and suggested a number of proposals on the implementation of the auto policy, and recently participated in some meeting sessions called by relevant government agencies/officials on the issue.

In an interview with our correspondent, he specifically called attention to the issue of unstable power supply and the commencement date for the new import tariff as contentious issues that needed to be urgently reviewed.

An auto expert and consultant, Dr. Oscar Odiboh, said the review of the tariff was expected, arguing that it was hurriedly put in place by the last regime and should, therefore, be suspended.

“The high tariff (on imported vehicles) should make itself necessary; it should not be forced down on the people. It should be suspended and introduced in phases – one to a five-year period,” he said.

Odiboh, who is the Managing Director, Newsletters Nigeria Limited, however, said the auto policy was a necessity for the development of the nation’s industry and the good of the economy.

“The project will take Nigeria from a lower stage to the next level and sit us among top economies of the world,” he stated.

But he warned that unless the implementation of the policy was made systemic and allowed to follow due process, it could derail the project.

He said, “Since this government says it has come to change things, it must change the policy. It is not a yam and beans policy. You must give people time.

“It requires certain basic things to be put in place. Power is necessary. There are other infrastructural facilities that will make the system run efficiently. Those things must be in place before enforcing the import tariff.”

Odiboh alleged that some firms had obtained the auto assembly plant licences to enable them to bring in fully built vehicles at low tariff and labelling those vehicles as being locally assembled.

But the Stallion Auto Group, currently assembling Nissan, Hyundai and Ashok Leyland brands of vehicles, and Dana Motors doing the Kia vehicles locally are optimistic that any review of the auto policy will not in any way affect their plants and business operations in Nigeria.

For instance, Mr. Parvir Sighn, managing director, Stallion NMN Limited, said, “As far as the group is concerned, we have no doubt that the government will sustain the policy. Anywhere in the world, the automobile industry is a high contributor to the Gross Domestic Product. It is also a significant employer of labour. The state of the auto development of a nation is a reflection of the development of that country.

“The policy will be sustained. There is no shortcut to it. You need a robust industry to support the high demand for vehicles in the country. The demand is there.”

Mr. Olawale Jimoh, spokesperson for Kia Motors Nigeria, said the company had in conjunction with its technical partners, Kia Motor Corporation, invested billions of naira in the local assembly plant and had in the process created jobs for Nigerians.

The government said the response of the automakers to the auto policy, particularly the call for the establishment of assembly plants in Nigeria, had been overwhelming.

Indeed, the NADDC said on Friday that the “response to the policy so far has exceeded our expectations.”

This must have prompted the Director-General of the NADDC, Mr. Aminu Jalal, to announce the suspension of licence issuance to new auto assembly plants.

He said the decision was taken to enable the council to set up some test centres that would “ensure that imported vehicles and components meet international safety and environmental standards.”

But the LCCI said the 70 per cent tariff on imported cars would bring about a higher transport cost.

The President, LCCI, Alhaji Remi Bello, said in a statement, “Vehicle ownership will be put further beyond the reach of the Nigerian middle class, especially in the face of poor credit access and high lending rates in the economy.”

He called for the development of ancillary industries for the production of batteries, glass, radiators, tyres and other vehicle components as well as affordable finance for the investors.

The LCCI president stated that the auto industry should be predicated on strong engineering infrastructure, including the production of flat sheets, foundries and fabrication of components needed in vehicle production.

When contacted, the Special Adviser to the President on Media, Mr. Femi Adesina, said he had no information on the auto policy, while the Special Assistant on Media to Vice President Yemi Osinbajo, Mr. Laolu Akande, promised to get back to our correspondent on the matter but never did up till the time of filing this report.

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Lasaco Assurance Gets Shareholders Approval to Advance Capitalization Plans

Published

2 hours ago

February 10, 2026

Chike Onwuegbuchi

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Lasaco Assurance Plc has received formal commitment letters from shareholders following its recent Extraordinary General Meeting, strengthening confidence in the company’s plan to raise additional capital in line with regulatory requirements and ongoing insurance sector reforms.

Speaking on the development, Ademoye Shobo, acting managing director of Lasaco Assurance Plc, said the confirmation from shareholders provides clarity and certainty as the company moves to execute its approved capital-raising strategy.

“The commitment letters from our shareholders give us the confidence to proceed with our capitalisation plans in line with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other regulatory requirements guiding the insurance industry.

“We will leverage all available opportunities to raise the approved capital, and our existing shareholders should watch out for our rights issue as part of the process,” Shobo said.

With shareholders’ backing now formally documented, Lasaco Assurance Plc plans to actively pursue available funding options to deliver the approved capital raise. The company plans to deploy a mix of market-based instruments, including a rights issue and other permissible fundraising structures, to ensure timely and effective capital mobilisation.

The Management noted that the commitment letters reinforce investor confidence in the company’s growth strategy, governance framework, and long-term outlook. The capital raise is expected to support balance sheet strengthening, improve underwriting capacity, and provide greater flexibility for business expansion across core insurance segments.

As part of the process, existing shareholders have been advised to watch out for the forthcoming rights issue, which will provide them with the opportunity to participate proportionately in capital expansion. The company reaffirmed its intention to ensure transparency and regulatory compliance throughout the fundraising exercise.

Lasaco Assurance Plc views the capitalization drive as a strategic step toward sustaining competitiveness, enhancing risk-bearing capacity, and positioning the company for future growth within Nigeria’s insurance market. The initiative also aligns with broader industry efforts aimed at strengthening the company’s financial resilience and protecting policyholders’ interests.

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Ecobank Nigeria to Host Customer Forum on Strengthening Regional Integration for Economic Transformation

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2 hours ago

February 10, 2026

Chike Onwuegbuchi

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Ecobank Nigeria is set to host the second edition of its Customer Forum, at the Ecobank Pan-African Centre, Ozumba Mbadiwe Avenue, Victoria Island, Lagos.

The forum, organised by the bank’s Fixed Income, Currencies and Commodities (FICC) Business (Treasury), is themed ‘Strengthening Regional Integration for Economic Transformation.’

It is designed to examine critical issues shaping Nigeria’s and Africa’s economic outlook in 2026, with particular focus on trade, financial markets, foreign exchange liquidity and regional integration, especially as the African Continental Free Trade Area (AfCFTA) agreement enters a strategic phase of implementation.

Announcing the event in Lagos, the Regional Treasurer, Ecobank Nigeria Limited, Olumide Adebayo, said the one-day programme reinforces the bank’s role as a trusted financial partner and customer-focused institution, with intention to foster dialogue, support informed decision-making and deeper regional economic integration across Africa.

According to him, the programme will open with welcome remarks by the Managing Director/Regional Executive, Ecobank Nigeria, Mr. Bolaji Lawal, who will underscore the bank’s commitment to supporting customers and driving inclusive growth through strategic dialogue, innovation and pan-African collaboration.

The keynote address, titled ‘The Future of Trade in Africa: Harnessing the AfCFTA for Economic Transformation,’ will be delivered by the Group Chief Economist & Managing Director, Research and Trade Intelligence, African Export-Import Bank (Afreximbank), Dr. Yemi Kale.

His address will provide insights into Africa’s trade prospects and the transformative potential of the AfCFTA.

The forum will feature two high-level panel discussions: balancing the Risk between Interest Rate and Exchange Rate: Business Expectations and Outlook in 2026 and Export Proceeds, Oil Receipts and Remittances in 2026: Exploring Options that Best Support FX Liquidity and Flows in Nigeria.

The event would be moderated by Messrs. Aruoture Oddiri, Host and Producer of Global Business Report on Arise News and Barnabas Vajeh of Ecobank Nigeria Limited.

Ecobank Nigeria is a member of the Ecobank Group, the leading pan-African banking institution with operations in 33 African countries and international offices in London, Paris, Beijing and Dubai.

With over 220 branches, more than 36,000 agency banking locations, and robust digital platforms, Ecobank delivers accessible, affordable, and instant banking services. The bank is strategically positioned to support pan-African trade, particularly under the African Continental Free Trade Area (AfCFTA).

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Lagos to Establish West Africa’s Premier International Financial Centre

Published

2 hours ago

February 10, 2026

Chike Onwuegbuchi

Jonny Baxter, British Deputy High Commissioner; Babajide Sanwo-Olu, Lagos State Governor; Anna Rogers, Director, International Development, TheCityUK; and Aigboje Aig-Imoukhuede, Board Chairman, EntrepriseNGR, at the launch of the LIFU report, last week at State House Marina, Lagos.

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TheCityUK, in partnership with the UK Government, Lagos State Government, Lagos International Financial Centre Council (LIFCC), and EnterpriseNGR, have unveiled a landmark report, “Establishing an International Financial Centre in Lagos (LIFC), Nigeria”, outlining a strategic roadmap to transform Lagos into the West African hub for international investment capital driving innovation, and sustainable growth across the country and the wider region.

The LIFC initiative aligns with Nigeria’s Agenda 2050 and the Lagos State Development Plan 2052, to deliver long-term economic prosperity, deepen financial markets, and attract productive global investment. The project showcases the power of public-private partnership, bringing visionary leadership from the government together with private sector companies seeking to tap into Nigeria’s young, dynamic market to deliver economic growth.

The report was launched at an event at State House Marina with guests including Lagos State Governor, Babajide Sanwo-Olu, British Deputy High Commissioner Jonny Baxter, and EnterpriseNGR Board Chairman and CEO, Aigboje Aig-Imoukhuede and Obi Ibekwe.

Key Highlights from the Report:

Strategic Vision: The LIFC will support Nigeria’s ambition to become an upper-middle-income country by 2050, driving inclusive growth, reducing poverty, and creating high-value jobs, especially for Nigeria’s talented youth.
International Collaboration: The report highlights the benefit of strong UK-Nigerian co-operation, building on best practices and global benchmarks to align the LIFC with international standards.
Model Recommendation: The report recommends the development of an independent IFC model for Lagos, and the steps to achieve this. An IFCwill deliver, regulatory clarity, simplified tax and policy settings and offer greater investor confidence and economic benefits for the wider Nigerian economy.
Unique Selling Points: The LIFC should focus on areas which can deliver the greatest economic benefits matched to investor interest. Consultations have suggested three areas for its initial focus: Green and Sustainable Finance, FinTech & Innovation, and Commodities Trading & Capital Markets. These sectors are identified as key drivers for Nigeria’s future competitiveness and growth.
Governance and Legal Reform: The report calls for robust legal and regulatory frameworks, an independent governance framework, and strong collaboration between Lagos State, Federal Government, and private sector stakeholders to drive the implementation of the IFC.
Talent and Human Capital: A focus on developing domestic talent, easing visa regimes for international professionals, and building a pipeline of skilled workers will underpin the LIFC’s success.
Tax and Incentives: Recommendations include competitive tax regimes, tailored incentives for investment that aligns to the national vision, and streamlined business processes to attract global capital.

On the report, Babajide Sanwo-Olu, Lagos State Governor, said, “Lagos is fully committed to the birth of the International Financial Centre. We know that it is a veritable means of supporting seamless trading and to enhance competitiveness of financial markets.

As Nigeria’s largest economic and financial centre, Lagos plays a critical role in driving the nation’s capital markets. We need to create an ecosystem that will help to facilitate investment flows, enhance market liquidity, and promote financial literacy.

“The LIFC initiative will not only strengthen our market infrastructure but also unlock new opportunities for public-private partnerships in technology and capital market development. It will support seamless trading, attract foreign investment and enhance competitiveness of financial markets.”

Jonny Baxter, British Deputy High Commissioner, commented; “The launch of the Lagos International Financial Centre report reflects the deepening of UK-Nigeria partnership, combining Lagos’s comparative strengths with UK expertise.

Anchored in clear, evidence‑based analysis and launched at a pivotal moment in Nigeria’s reform journey, the LIFC has the potential to unlock major domestic and international investment, deepen capital markets, create jobs, and drive sustainable economic growth across the country, not just in Lagos State.”

Nicola Watkinson, Managing Director, International, TheCityUK, said, “Nigeria is a high-growth, dynamic and large market and the Lagos International Financial Centre could be vital to its future.

By building a modern, integrated business and regulatory environment and financial ecosystem, the LIFC will support the attraction of global and domestic capital, deepen domestic markets, facilitate innovation in FinTech and green finance, and create high‑value jobs for Nigeria’s youth.

“Supporting the development of Lagos as an international financial centre is a clear example of how the UK and Nigeria are deepening their strategic partnership.”

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