The Chairman, Senate Committee
on Investment, Sen. Nenadi Usman, said that the committee would
investigate allegations that Stallion Group of Companies had insider
information on the new automotive policy.
Usman made the statement in Abuja on Tuesday during the committee’s meeting with the stakeholders.
The Federal Government announced the new automotive policy on Oct. 2.
However, some competitors alleged that an insider gave Stallion Group unfair advantage over other local dealers by informing it of the policy before it was made public.
The competitors alleged that while deliberations were ongoing at the Federal Executive Council on Oct. 2, the company rushed to open 382 million dollars letters of credit.
According to the competitors, the letter of credits are to cover three years of imports for 20,000 cars.
Usman said that the committee had received figures of vehicle importation over the years and would go back as a committee and verify.
According to her, “I am convinced that the stakeholders have no problem with the auto policy but have reservations over the manner of its implementation”.
The representative of the Auto Manufacturers in Nigeria, Chief Micheal Adeojo, said his group supported the new auto policy but appealed that the deadline should be extended by two years.
“We are not opposed to this policy, but we are not agreeable to the way it is to be implemented,” Adeojo said.
As at Oct. 2, the duty on Fully Built Units passenger cars were between 20 and 35 per cent while a 10 percent flat rate was imposed on commercial vehicles.
The automotive policy increased the duty on passenger vehicles to 70 per cent and 30 per cent for commercial vehicles to encourage local manufacture of cars.
This means that all Letters of Credit opened after Oct. 3 will attract the new duty while all L/Cs opened before Oct. 3 would attract the old duty until Feb. 28, 2014.
Speaking on behalf of the Stallion Group, the Managing Director of VON Automobile Nigeria Limited, Mr Tokunbo Aromolaran, refuted allegations of information leakage.
Aromolaran said that all the stakeholders received the information on the same day, adding that it was not his fault that they refused to act fast while he did.
“In business, when information comes, you can either act on it or otherwise. How fast you move is a function of how fast you are.
“There will never be a right time to start an automotive policy but over the next six months, Nigerians will be provided with low cost vehicles,” he said.
On his part, the Minister of Trade and Investment, Mr Olusegun Aganga, said that the ministry was fair to all stakeholders as everyone was being carried along.
Aganga said that with every new policy, there was bound to be initial hiccups.
However, he gave the assurance that the ministry was poised to tackle every challenge it encountered while implementing the new policy.
Usman made the statement in Abuja on Tuesday during the committee’s meeting with the stakeholders.
The Federal Government announced the new automotive policy on Oct. 2.
However, some competitors alleged that an insider gave Stallion Group unfair advantage over other local dealers by informing it of the policy before it was made public.
The competitors alleged that while deliberations were ongoing at the Federal Executive Council on Oct. 2, the company rushed to open 382 million dollars letters of credit.
According to the competitors, the letter of credits are to cover three years of imports for 20,000 cars.
Usman said that the committee had received figures of vehicle importation over the years and would go back as a committee and verify.
According to her, “I am convinced that the stakeholders have no problem with the auto policy but have reservations over the manner of its implementation”.
The representative of the Auto Manufacturers in Nigeria, Chief Micheal Adeojo, said his group supported the new auto policy but appealed that the deadline should be extended by two years.
“We are not opposed to this policy, but we are not agreeable to the way it is to be implemented,” Adeojo said.
As at Oct. 2, the duty on Fully Built Units passenger cars were between 20 and 35 per cent while a 10 percent flat rate was imposed on commercial vehicles.
The automotive policy increased the duty on passenger vehicles to 70 per cent and 30 per cent for commercial vehicles to encourage local manufacture of cars.
This means that all Letters of Credit opened after Oct. 3 will attract the new duty while all L/Cs opened before Oct. 3 would attract the old duty until Feb. 28, 2014.
Speaking on behalf of the Stallion Group, the Managing Director of VON Automobile Nigeria Limited, Mr Tokunbo Aromolaran, refuted allegations of information leakage.
Aromolaran said that all the stakeholders received the information on the same day, adding that it was not his fault that they refused to act fast while he did.
“In business, when information comes, you can either act on it or otherwise. How fast you move is a function of how fast you are.
“There will never be a right time to start an automotive policy but over the next six months, Nigerians will be provided with low cost vehicles,” he said.
On his part, the Minister of Trade and Investment, Mr Olusegun Aganga, said that the ministry was fair to all stakeholders as everyone was being carried along.
Aganga said that with every new policy, there was bound to be initial hiccups.
However, he gave the assurance that the ministry was poised to tackle every challenge it encountered while implementing the new policy.
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