Changing Nigeria’s approach to industrialisation (3)

been undergone by exporters, including approval by both houses of the National Assembly.

The level of policy failures in recent times has been worrisome. Think about the cassava bread policy, which has now died a natural death. The Goodluck Jonathan administration, which promoted it, did not follow it through and those who invested money into cassava production with an eye on that policy might have lost a lot of money.

Consider the Automotive Policy, which was sincerely meant to enable Nigeria make its own cars at cheaper rates. Today, the policy is not implemented, though government officials make it seem otherwise. The 2013 National Automotive Policy imposed 35 percent levy and 35 percent duty on imported vehicles, amounting to a total of 70 percent.

Even with 70 percent fees paid on imported vehicles, importers of damaged or ‘accidented’ vehicles officially enjoy a rebate of 30 percent. What this has done is to encourage the importation of rickety vehicles, which make up 70 percent of imported cars today.

The age of most imported used cars in Nigeria is 15 years, whereas that of Algeria, Angola, Chad, Mauritius and Seychelles is three, according to a research done by Pwc’s Andrew Nevin, partner and chief economist at PWC Nigeria.

This has kept most car assemblers out of business. The prohibitive levy and duty paid on imported cars have encouraged smuggling of vehicles into Nigeria. Officially, market for cars in the country is just 6,999 as against 555,716 in South Africa; 181,001 in Egypt; 168,913 in Morocco, and 94,408 in Algeria.

But hundreds of thousands of vehicles come into the country each year. So, of what merit is the policy?

Finally, the Goodluck Jonathan administration had genuine technocrats willing to industrialise Nigeria, though some players took advantage of loopholes in the policies to make money. But the 2013 National Industrial Revolution Plan (NIRP) represents Nigeria’s most comprehensive industrial policy since Independence. Where is that policy, prepared by experts from reputable global and local institutions, including UNIDO? Like others before it, major sections of that policy have been abandoned and left in the shelves by the current Muhammadu Buhari administration. Assuming that investors banked their investments on that policy, what happens to those humongous investments?