House of Reps move to ban buying of imported vehicles for official use in Nigeria (Details, pics)

The House of Representatives during its Thursday, February 15, plenary session adopted a motion to ban the importation of vehicles for official use in Nigeria.

The House said Nigeria has become a dumping ground for substandard cars and urged the federal government to create a policy to stop ministries, agencies and other government establishments from importing vehicles for official use.

Vanguard reports that the House has also set up a committee to investigate why the automobile companies in Nigeria collapsed and proffer solutions.

The motion, titled “Need to Prioritise the Procurement of Cars Manufactured or Assembled in Nigeria by Government Ministries, Departments and Agencies, MDAs”, was sponsored by Omoregie Ogbeide-Ihama (Edo state).

Ihama in the motion, expressed worry that Nigeria had become a dumping ground for automobiles manufactured on foreign soil unlike in the past when car manufacturing companies flooded the country.

He said: “The House notes that the automobile market is a multi-billion Naira venture in Nigeria, given its large population and huge reliance on road transport.

“Aware that government at all levels being the highest spender in Nigeria is a major buyer of automobiles in Nigeria. “Worried that over 95 per cent of the automobiles procured by government Ministries, Departments and Agencies, MDAs, are neither manufactured nor assembled in Nigeria.

“Recall that a couple of years ago automobile manufacturing companies like Volkswagen, Mercedes Benz and Peugeot had functional assembling plants in Nigeria.”

“Informed that the automobile manufacturing companies outside Nigeria neither pay direct taxes in Nigeria nor are their activities beneficial to the economy of Nigeria.

"Cognizant that the benefits of having automobile manufacturing companies operate manufacturing or assembling plants within Nigeria include; technology transfer, employment for Nigerians, revenue generation through taxes, reduction in balance of trade deficit, increased GDP, safety specification etc.

"Concerned that Nigeria has been relegated to the role of a ready market for automobiles manufactured in more developed economies.

“Convinced that the only way Nigeria can break off the shackles of being a perpetual market for other economies, is by pursuing a deliberate policy on automobiles which will restrict patronage of automobiles by government Ministries, Departments and Agencies (MDAs) to automobile brands from companies which have their manufacturing or assembling plants within Nigeria.”

Other members of the House supported the motion and wondered why the government would waste money on importation of cars offshore, even in the era of change.

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