Sergio Anthonio, Rua Arapuru 132, Sao Paulo, Brazil. 09290-470
RE: ESTABLISHMENT OF CKD BUS ASSEMBLY PLANT IN NIGERIA
Reference to our discussion with officials of Federal Government of Nigeria National Automotive Industry Development Plan (NAIDP) Mr. Luqman Mahmood today 26th June, 2017. This is to inform you of our telephone conversation this morning with the above Federal Government of Nigeria, NAIDP officials confirming that if we apply for a license to be granted to Nationwide Transport for the proposed importation of 15,000 medium 31-seater buses using the Volkswagen chassis to be assembled at Li ventis factory in Ibadan and that the importation arrive Nigeria between October-December 2017. We shall be granted license at 1CKD 0% duty and 1FBU at 20% duty as against current 30% duty, it is therefore summarized as follows: 1. We have examined the Nigeria automotive policy (NAIDP, 2014- 2024) and find that it will be best to enter the industry as a CKD Assembly plant rather as SKD. 2. Importation of CKD kits (even if bus body parts are stamped and treated for corrosion) from Brazil will attract 0% duty. We only then need to invest in final painting. 3. We have to invest in body shop to weld the parts together. We think this will reduce overall cost as we deliver on the 15,000 buses. 4. We are also at the same time entitled to import FBU buses on a ratio of 1:1 till 2018 to speed up supplies but this will be at 20% tariff rate. Inview of the above you are expected to commence discussion with COMIL of Brazil as the lead technical team to enable Nationwide Unity Transport, Bepo and Li ventis commence Assembly of the Buses using the Li ventis facility at Ibadan. Subsequently COMIL as the lead technical team shall commence delivery of 5,000 buses under FBU to enable Lagos State Government commence allocation to beneficiaries of the scheme provided the CKD and FBU arrived Lagos port before December 2017, this will enable us take delivery of 10,000 buses CKD and FBU from January 2018.
Prior to the shipment of first 5,000 CKD to be followed by 5,000
FBU we are to sign agreement between Nationwide Unity Transport and Li ventis on a working relationship, Nationwide Unity Transport will then submit application to NAIDP for license to establish CKD buses in Nigeria. This will enable us get license for 15,000 buses under CKD and FBU from Federal Government licensing Agency (NADDC) for further information contact the website: www.naddc.gov.ng. The permanent site to be allocated by the Lagos state Government at Epe shall therefore be develop within number of years without any rushing and it will be used for assembly of city buses while the Li ventis factory be converted for CKD coach buses using also Volkswagen chassis. This project shall create employment to thousands of Nigeria together with technological transfer to Nigerians through training of Nigerians in Brazil in particular and in Ngeria in general. On behalf of the board of Directors of Nationwide Transport of Implementing our obligation and obtaining the license from the Nigeria Government including land allocation as specify during your recent submission of layout plan and factory design to Lagos state Government. We look forward to receive COMIL respond through you. Thank you for the opportunity granted in improving both Brazilian- Nigerian business opportunity. Yours faithfully
Alhaji (Dr) Bawa Garba
Chairman CC: Mr. Nikos Li ventis-Nigeria General Manager CC: COMIL of Brazil CC: Bepo of Brazil