FG's Policy Causing Drop in Value, Revenue of Tokunbo Cars, Dealers Lament
- Vehicle dealers and port operators are lamenting the decline in imported cars in Nigeria
- A document containing the number of imported vehicles into Nigeria shows that about 1,050 cars are expected in the country this month
- The port operators blamed the problem on the naira float and scarcity of foreign exchange
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Vehicle imports into Nigeria have declined as the country's biggest roll-on-roll off the terminal. Ports & Terminal Multipurpose Limited says it expects 1.050 units of vehicles in 11 days.
The company disclosed this on Tuesday, October 17, 2023.
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A breakdown shows the number of vehicles expected in Nigeria
Punch reports that a document by the firm indicates that between October 16 and 27, 1,050 used cars are expected to arrive at the terminal.
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The decline in imports has been blamed on Nigeria's scarcity of foreign exchange.
Daily Shipping Position is a document displaying the name, time of arrival, and what vessel is coming into the country.
According to the breakdown in the document, 400 units of used vehicles came in on October 16, 2023, while 350 units of used cars are expected at the terminal on the 20th and 300 units on October 27, 2023.
Customs boss laments the decline in vehicle imports
The Acting Comptroller General of Customs, Adewale Adeniyi, addressed the situation during his recent visit to the terminal.
He said:
"We have walked around the whole of this terminal. You have seen the situation. We can see the direct effect on this particular terminal alone. So in terms of cargoes, we know the volume is also decreasing by the day."
The Chairman of licensed customs agents and the CEO of Silkremstar Logistics, Sikiru Remilekun, said the volume is low compared to the past.
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Remilekun blamed the hike in the exchange rate for the decline.
The Association of Nigerian Licensed Customs Agents youth leader said that some vessels with larger vehicle units do not call at the ports again.
Nigeria reopens land borders for vehicle imports
Recently, the Nigerian government lifted the ban on the importation of vehicles through land borders.
The development is expected to boost economic activities within the corridor.
The government of President Muhammadu Buhari had closed land borders between Nigeria and Cotonou, Benin Republic, and banned vehicle importation via the areas.
On June 30, 2023, the Director of Road Transport in the Ministry of Transportation, Ibrahim Musa, said the Nigerian government had approved re-opening the Seme border for vehicle imports.
Musa disclosed the development at the ECOWAS meeting organised between Nigeria and Benin.
He said the development followed complaints by freight forwarders operating the Seme-Cotonou border.
Proof of ownership: FG to generate N12bn from 12 million vehicles in Nigeria
Legit.ng earlier reported the Federal Government's imposition of an N1,000 annual charge for a Proof of Ownership Certificate on all vehicles in the country would generate about N12 billion in revenue.
The figure was calculated based on the number of vehicles available within the country's borders.
The Federal Government of Nigeria recently introduced a new policy mandating motorists to pay an annual fee of N1,000 to verify their Proof of Ownership Certificate.
Source: Legit.ng
