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LequteMan
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Nigeria- The Chairman, Senate Committee on Investment, Sen. Nenadi Usman, during a meeting with stakeholders in Abuja on Tuesday stated that the committee would investigate allegations that Stallion Group of Companies had insider information on the new automotive policy.
The Federal Government announced the new automotive policy on Oct. 2, which put the duty on Fully Built Units (FBUs) passenger cars were between 20 and 35 per cent while a 10 percent flat rate was imposed on commercial vehicles.
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.
“I am convinced that the stakeholders have no problem with the auto policy but have reservations over the manner of its implementation'', she said.
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.
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.
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
The Federal Government announced the new automotive policy on Oct. 2, which put the duty on Fully Built Units (FBUs) passenger cars were between 20 and 35 per cent while a 10 percent flat rate was imposed on commercial vehicles.
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.
“I am convinced that the stakeholders have no problem with the auto policy but have reservations over the manner of its implementation'', she said.
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.
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.
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