Vehicle import restriction favours Nigerian used vehicles

Reactions have continued to trail  the ban on the importation of vehicles through the land borders by the federal government.

 The Managing Director, Peugout Automobile Nigeria Limited PAN, Alhaji Ibrahim Boyi hailed the Federal government’s ban of importation of vehicles into Nigeria through the land borders, saying it was a right step in the right direction.

Alhaji Boyi who spoke on the development in a telephone interview said that PAN as an organisation welcomed the new development.

The PAN boss however, pointed out that importation of vehicles through land borders in the country has denied the government and the Nigerian Customs Services (NCS) huge revenue.

Boyi added that such practice has also made second hand cars cheaper which ultimately denies the development of auto plants in the country.

But a major car dealer at Auto Berger Dealers Market in Apapa, Lagos and the Managing Director of Auto Links Nigeria Limited, Chief Peter Omefe said that even the second hand vehicles have equally gone up.

Reacting to the ban, Chief Omefe pointed out that the different laws arising from the new auto policy have ended up helping the fairly used vehicles market in Nigeria, otherwise known as the Nigerian used vehicles.

According to the  car dealer, the duties leveled on vehicles have made the prices go up, forcing Nigerians to settle for the fairly used Nigerian vehicles.

Omefe said: “The banning and duties placed on vehicles have made the prices go up. Before we used to sell a car for about N1.4 million but today it has gone up to N1.9 and even N2 million. It is very high because of the duties paid in the wharf. This is added to the exchange rate which is equally high. Gone are the days people go to Cotonou because it is even higher there now because of the new laws. So people are now going for Nigerian used vehicles”.

As part of government efforts to support local vehicle assemblers, the Chairman, Senate Committee on Privatisation, Senator Ben Murray-Bruce last week in Lagos criticized policy makers for the poor implementation of the auto policy.

According to Senator Murray Bruce some policy makers and patriots have failed to patronize made-in-Nigeria goods, particularly, vehicles that are assembled in the country.

Speaking  after a guarded tour of VON Automobile Nigeria Limited in Lagos, Senator Murray-Bruce said that it would be very difficult to implement the auto policy mooted by the Federal Government few years ago if policy makers refuse to patronize made-in-Nigeria vehicles.
The Senate Committee chairman was speaking against the backdrop that locally assembled vehicles which were built by VON Automobile Nigeria Limited over the last few years have not attracted the expected patronage from Nigerians especially the elites.

In his own views, automobile consultant, Mr Manny Phillipson corroborated Alhaji Boyi’s views, saying that it is the right step in the right direction just as he opined that such step will help the Nigerian Customs account for the volume of vehicle imports every year.

According to Phillipson, the government has not actually implemented the auto policy but seems to be serious now.

He said: “On used car import, the government at the moment is not considering the total ban. What they intend doing is to introduce the 35 % levy on vehicles imported through our ports. Usually, what they pay is the duty which is 35%. We are hoping that between now and June next year, the government will start implementation” .

“Apart from accountability, such step by the government will assist vehicle marketers to plan effectively. Planning has been very difficult and am sure auto assemblers will be happy about it”, he added”.

The federal government Monday announced ban of the importation of vehicles into Nigeria through the land borders with effect from January 2017.

According to the official statement signed by the Public Relations Officer of Customs, Wale Adeniyi, “The prohibition order covers all new and used vehicles. The ban is sequel to a Presidential Directive restricting all vehicle imports to Nigeria to Sea Ports only. The order takes effect from 1st January 2017“.

Adeniyi further explained that, “The restriction on importation of vehicles follows that of Rice, whose imports have been banned through the land borders since April 2016. Importers of vehicles through the land borders are requested to utilise the grace up till 31st December 2016 to clear their vehicle imports landed in neighbouring ports”.

A public relations officer in one of the agencies Mr Obinna Njoku described the development as a healthy one as most vehicles through the land borders evaded duties.

Njoku said it will curb the excesses of men of the customs and Immigration services who according to him were richer than the country. He said it will also lead to increase in revenue generation of the government