FG Moves to Ban Import of Used Vehicles, Designates Age Limits, Innoson, Others to Benefit
- The Nigerian Automotive Design and Development Council (NADDC) is proposing a ban on the importation of used vehicles
- The council said the move is to prevent Nigeria from becoming a dumpsite for all kinds of vehicles
- The commission said it enforce a ban on the import of used cars above 20 years of age
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The Nigerian Automotive Design and Development Council (NADDC) has suggested a ban on importing used vehicles over 20 years old.
The move is to stop Nigeria from becoming a dumpsite for old cars and to encourage local production.
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NADDC specifies an age limit for imported cars
According to the Director-General of NADDC, Joseph Osaniyin, the council planned to collaborate with relevant bodies to enforce the age limits on used cars and specify minimum standards for imported vehicles.
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The NADDC boss said the council will request that the policy contained in the NAIDP be reviewed because it is the only way to grow the local automobile industry.
He said:
“That is the only way we can develop our parts. We are working to identify the parts we can produce in Nigeria.”
According to him, producing those local parts would allow the council and relevant bodies to delete the import of all items produced locally.
Nigeria relies heavily on imported used vehicles as the local industry still needs to grow.
Nigeria sees a surge in imported vehicles in 2023
Information from the International Trade Administration of the United States indicates that Nigeria’s annual vehicle demand was around 720,000 units. In comparison, local factories produce a fraction of 14,000 units per annum, resulting in a deficit filled by imports.
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The Nigeria Bureau of Statistics said that in the first nine months of 2023, Nigeria imported used vehicles valued at N926.09 billion from the US and UAE.
In Q1 of 2023, the country witnessed used car imports worth about N59.53 billion. It later surged to N721.79 billion in Q2 and dipped to N144.77 billion in Q3.
The former Controller-General of Customers, Hameed Ali, had suggested a ban on used vehicles over seven years old when he appeared before the national assembly in 2021.
Ali stated that the service was working on a policy proposal to reduce the years of vehicles brought into Nigeria as used vehicles.
He said:
“We hope that our industries will begin to produce vehicles that we can afford to buy and reduce the importation of used vehicles.”
Punch reports that industry watchers argued that the measure could stimulate local production.
Nigerians reject NADDC proposal
Others stated that the industry’s energy relies on imported vehicles, including damaged ones, which are sources of spare parts.
But Nwafor Ikem, a used vehicle dealer in Lagos, frowned at the move, stating that it would impact Nigerians severely.
He said most Nigerians abroad rely on imported used cars for survival, stating that Nigerians in the diaspora rely on sending cars back home for income.
He said:
“I know four siblings in Germany whose jobs are to shop for such vehicles and send them back home as an income source. It helps them and helps those at home.
Most car automobile dealers in Nigeria sell cars within the age limit suggested by NADDC. If the ban becomes effective, it will put many of them out of business.”
FG's policy caused a drop in value, the revenue of Tokunbo cars, and dealers lament
Legit.ng reported that 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.
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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