FG Makes Moves on Car Importation, Dealers as Price of Tokunbo Vehicles Jumps Three Times
- The federal government has moved to regulate car importation and dealers operating in the country
- The government said the move was to curb the influx of accident-prone and condemned vehicles entering Nigeria through smuggling routes
- AMDON has welcomed the move, noting that unregulated imports by individuals posed risks to consumers and the industry’s reputation
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigeria Automotive Design and Development Council (NADDC) has announced the federal government’s plan to regulate car importation and dealership operations across Nigeria.
Source: Getty Images
Joseph Osanipin, the director-general of NADDC, disclosed this while speaking at a stakeholder engagement with members and executives of the Association of Motor Dealers of Nigeria (AMDON) titled ‘Import of Used Cars and Dealership Regulation in Nigeria'
According to Osanipin, there was a need for stricter regulations on the importation and sale of used cars due to the influx of accident-prone and condemned vehicles, many of which enter the country through smuggling routes.
He said:
“We have prioritised component development, recognising that the growth of Nigeria’s automotive industry relies on a strong supply chain.
“We are collaborating with local manufacturers to expand their production capacity and meet market demand, as no single parts manufacturer in the country can currently fulfil the entire need.”
The NADDC boss also underscored the need for collaboration among industry stakeholders, warning that without cooperation from dealers, regulatory efforts could be undermined, Punch reports.
He added:
“We are working closely with key stakeholders, including auto dealers, to uphold safety and environmental standards while tackling the illegal importation of smuggled, accident-damaged, and outdated vehicles.”
He also called on AMDON to uphold self-regulation by identifying and reporting those damaging the industry’s reputation through the importation of outdated vehicles that pose safety risks. He cited reports revealing that vehicles designated for scrapping had been illegally brought into Nigeria.
Osanipin told the dealers:
“We need you to realise that some vehicles in Nigeria should not be here, and we cannot fight this battle without your cooperation.
"AMDON must take responsibility for self-regulation by identifying those tarnishing the association’s image.
"A report once revealed that cars designated for scrapping were purchased and brought into Nigeria by Nigerians vehicles that other countries rejected but somehow ended up here. Why?”
In response, Ajibola Adedoyin, AMDON’s national president, welcomed the government’s regulatory move, stating that the association had been advocating such measures for years, BusinessDay reports.
Adedoyin explained:
“Most of the vehicles displayed at dealers’ stands were not imported by the dealers themselves; they were purchased and brought into the country by individuals, including civil servants.
"If anyone can import a car without any involvement with a registered dealer, it raises serious concerns. Without proper regulation, many of the challenges we are discussing cannot be effectively addressed.”
Prices of Tokunbo cars to skyrocket 3x
Legit.ng previously reported that the prices of Tokunbo (imported used) cars have surged in recent times due to the naira’s depreciation and high import taxes.
The average price of a Golf 3 sedan, commonly used for transport, jumped from N900,000–N1.2 million to N2.7 million, while a Toyota Sienna moved up from N6 million to N10 million.
Similarly, the 2012 Honda Accord rose from N6.5 million to between N8 million and N10 million.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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