2 BUSINESS DAY C002D5556 Thursday <strong>17</strong> <strong>Aug</strong>ust 20<strong>17</strong> NEWS Nigerians pay N400 billion as bribes in 2016 ...customs officers, judges, police are highest bribe takers A National Bureau of Statistics’ (NBS) survey has shown that Nigerians paid about N400 billion or $4.6 billion as bribes in 2016. The survey, which was conducted between June 2015 and May 2016, was supported by the United Nations Office on Drugs and Crime (UNODC) and the European Union, wanted to assess the quality and integrity of public services in Nigeria. The amount paid as bribes by Nigerians to public officials was TELIAT SULE equivalent to 50 percent of the internally generated revenue (IGR) of the 36 states of the federation in 2016. Ninety-two percent (92%) of the bribes paid were in cash. And when compared with countries such as Afghanistan, Iraq and Western Balkans, surveyed by UNODC on similar issue, at 92 percent, Nigeria and Iraq are countries where bribes are paid the most in cash. “Corruption is the bane of any progressive society. It stifles entrepreneurship, professionalism and erodes the value of hard work and honesty, and is Nigeria’s bogus auto policy pushes car... Continued from page 1 changing cars for top executives every four years, have suspended the practice, due to high cost of procuring the new vehicles. The impact has been seen in a sharp drop in the sale of new vehicles in the country, resulting in the closure of many car dealerships and the consequent loss of jobs. The Federal Government had in 2013 increased the duties and levies on imported new vehicles, to encourage local auto assemblers through some incentives under the 2013-2023 National Automotive Industrial Development Plan (NAIDP) as supervised by the National Automotive Design and Development Council (NADDC). A sample list of car prices from the Koreans, Japanese and German manufacturers, which come in various engine capacities across model ranges, exclusively obtained by <strong>BusinessDay</strong>, showed that prices have more than doubled between 2014 and 20<strong>17</strong>. In 2014, a brand new Kia Cerato 1.6 litre automatic transmission saloon car sold for N3.96 million but now costs N9.54 million in 20<strong>17</strong>, while a Kia Picanto 1-liter engine capacity, which cost N2.25m three years ago, is now sold for N4.95 million in 20<strong>17</strong>. Toyota Corolla 1.6 liter GLI automatic transmission fabric sold for N4.45 million three years ago, now costs N18.9 million. In the same period, a Mercedes- Benz C200 luxury sedan, which was sold with a dealership price tag of N10.5 million, costs N25 million in 20<strong>17</strong>, while a Mercedes G63AMG model which previously sold at N50 million, presently wears a price tag of N78 million. This shows a price jump of over 100 percent and this applies to other brands of vehicles in the market, apart from those manufactured in Korea, Japan or Germany. According to Kunle Ade-Ojo, Managing Director/CEO, Toyota Nigeria Limited, the rise in vehicle prices is majorly due to the unfavourable exchange rate of the naira. Ade-Ojo explained that as the dollar is scarce, so also is the naira pretty much scarce and that bank’s interest rates have gone up. “Even though the exchange rate has moderated from a high of about N520 to the dollar at a very critical period and trading at about N366 to the dollar and below, from the end of 2016 to 20<strong>17</strong>, it is still not available.” Ade-Ojo estimated that the country’s auto industry is expected to import and sell between 8,000 and 10,000 new vehicles this year, which is lower than the 15,000 projected at the end of last year. The forecast, Ade-Ojo said, was based on the industry’s performance in the first quarter of 20<strong>17</strong>, adding that at the end of the first quarter of 20<strong>17</strong>, total import figures in the nation’s automobile industry, from the nation’s ports, came to about 350 units, compared to about 3,500 units that came in at the same period last year. He said with this statistics, “imports dropped by about 90 percent between 2016 and 20<strong>17</strong> first quarter. one of the root causes of underdevelopment in our society. bribes were paid 82.3 million bribe payments, meaning that Over the years, we have seen the times by Nigerians during the effect of corruption manifesting period. across all sectors of society, with Furthermore, 62 out of every collusion across the public to 100 Nigerian adults that paid private sectors to sports bodies bribes during the period, paid and even civil society”, the survey at least once and at most three report stated. times in a year. Furthermore, 19 The exercise covered 33,067 out of every 100 adults that paid households in the 36 states of bribes, did so at least four times the federation and the Federal and at most six times in year, Capital Territory (FCT), Abuja. just as 13 out of 100 Nigerian The survey findings further show adults paid bribes at least seven that 52.2 percent of Nigerian times and at most 15 times in a adults had contact with public year. Three out of every 100 paid officials, of which 32.3 percent bribes at least 16 times and at of such interactions resulted in Continues on page 4 “In terms of retail sales, we are estimating, based on the information we have, that the auto market did about 2,000 vehicles, compared to about 5,000 vehicles that was done in first quarter of 2015, a drop of over 50 percent in retail sales. “Passenger cars reduced more than commercial cars and of course, when you look at the duties on passenger cars also at 70 percent, compared to 35 percent for commercial, the impact is more on passenger vehicles.” Retail sales went from about 32,000 in 2015 to about 18,000 last year, representing a market drop of about 42 percent. While giving the status of the implementation report of the NAIDP between October 2013 and June 20<strong>17</strong> at a recent stakeholders meeting involving local auto assemblers and other stakeholders in Lagos recently, Luqman Mamudu, Director of Policy & Planning, National Automotive Design & Development Council (NADDC) revealed that the automotive policy is seeing tremendous progress, despite doubts in some quarters and that soon, Nigerians will begin to see positive result. He disclosed that at the inception of the automotive policy in 2013, the number of approved local assemblers by the NADDC was 11 companies and grew to 53 companies in 20<strong>17</strong>. Production capacity rose from 108,380 units in 2013 to 408,870 units in 20<strong>17</strong>. Actual production size increased from 1665 in 2013; 4776 in 2014; 11,332 in 2015 and started witnessing a drop from to 11, 332 in 2015 to 10,673 in 2016 and 8,473 in 20<strong>17</strong>. Reacting on the astronomical jump in prices of new vehicles, Olawale Jimoh, Marketing Manager, FG seeks new economic frontiers on $41bn rail modernisation investment ... With GE and China’s Eximbank as principal actors MIKE OCHONMA with agency report Nigeria’s quest to explore new areas of revenue generation and diversification of its economy from oil is gaining traction, as the country seeks new opportunities through massive investment Continues on page 4 L-R: Jean Ngbwo, president, Financial Markets Commission of Cameroon; Mounir Gwarzo, director-general, Securities and Exchange Commission (SEC), and Joe Mekwiliuwa, general manager, operations, Central Securities Clearing System plc, during a news conference by SEC on implementation of e-dividend registration, in Lagos, yesterday. NAN Kia Motors Nigeria Limited, stated that for over two years now, the steady increase in the prices of cars in Nigeria has been misconstrued by some industry followers. He argued that the local assembly of cars will invariably bring a new dawn that will result in affordable “Made in Nigeria” cars. That expectation should ideally not be out of place, if Nigeria’s economy over the years has been stable. He lamented that with the fast depreciation in the value of the naira, prices of cars have increased by more than 100 percent, which may still not totally compensate for the drop in the value of the naira. Jimoh lamented that at this stage of the country’s auto development, assembly plants still import SKD kits to assemble, on account of the dearth of component manufacturers in the country, among the interplay of other factors.
Thursday <strong>17</strong> <strong>Aug</strong>ust 20<strong>17</strong> C002D5556 BUSINESS DAY 3