THE Federal Government needs to look into the dwindling fortunes of the Nigerian manufacturing sector, as the country is said to be loosing N30billion yearly on importation of tyres.It was stated that the current tariff structure operating in the tyre production industry, aside other infrastructural challenges was seriously weighing heavily on tyre production in the country.The Group Managing Director, DN Tyre & Rubber Plc, Mohammed Jimoh Yinusa, in an interview with The Guardian at the 48th yearly general meeting of the company, in Lagos on Friday explained that the company abandoned production due to the current tariff structure on tyre production which was 10 per cent to truck tyres, while 40 per cent goes to car tyres could no longer sustain local manufactures in Nigeria.He said that the current tariff structure was contrary to the earlier stipulated structure of 40 per cent for all imported products.'By 2006 when we opened our new factory, the guaranty that we got from the Obasanjo government that made us to go into it, because the project took over two years to finish was that tariff will be maintained at 40 per cent for imported products and by so doing, that protects the local manufacturers.'This is because in other countries where these imported goods are coming from do not face same infrastructural challenge we have in Nigeria. It is only in Nigeria that you make tyres using generators because when power goes in the process of production of tyre, whatever you are processing at that time is scrapped, it cannot be re-introduced.'He added, 'now, people bring in all the tyres and declare them as truck tyres and that does not make sense. There should not be any dichotomy, there should be just one tariff because of the reality of our environment for no, if not, we will just be wasting our time.'He explained that the tyre market generates about N100 billion for the economy annually, of which the company was controlling 35per cent of the market when still in production, while Michelin tyre was providing between 25-30 per cent of the market.The size of importation at that time, according to him was so insignificant, as both tyre companies were controlling over 60 per cent of the entire market size.Speaking on the current situation of the company, Yinusa however explained that the company was on the negotiation table with the government on how to make tariff structure more favourable to the sector, even as government had given the company the mandate to discuss with the Asset Management Company of Nigeria (AMCON) on how to restore the company financially.'We started new negotiations with the government in 2009, we told government that it is not about giving us money that if they give us money without addressing the issue of tariff, we will still end up in square one and they made all the promises that they were going to look into it while we go and discuss with AMCON on the financing side and the two issues were handled simultaneously.
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