Fresh insights have emerged on why majority of vehicles on Nigerian roads are fairly used rather than brand new cars.
Explaining the buildup in an interview, Immediate past President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu said the misguided introduction of the prevailing National Auto Policy robbed Nigerians both the peace of driving new cars and even the targeted promotion of local content in auto manufacturing.
He said “If you go to Ghana, you see brand new vehicles on the road because the newer your vehicle, the lesser your rate of duty but the older your vehicle, the higher the duty.
“But look at Nigeria, what we see is old vehicles everywhere, people are bringing in accidented vehicles and then we are looking at it.
According to him, “Smuggling will continue to persist if we don’t give people the free choice. There must be choice. If we must do Made in Nigeria vehicles, we need to look at the pricing, the quality and the people having the source of money to buy”.
“All these years, for every vehicle that comes into the country, the federal government charges two percent National Automotive Council (NAC) levy. What did they do with the money? They said they are going to use it to do automobile. How many people who were given licenses to assemble vehicles have been able to meet up to the standard?
“Even as recent as last two years, Volkswagon that was considering coming to set up a factory in Nigeria is also considering going to Ethopia or Kenya because our people just do things for how much they can get from it. It was a scam!
“We gave them example of India and how they come to have their own Made in India vehicles. They had a period of moratorium, not by force. You bring in a car whether old or new, you are required to pay 35 percent duty and 35 percent levy.
Continuing, Shittu averred that “I think the government is missing the target here. We even told the CG to get software in Customs where anywhere in the world, once you put the Vehicle Identification Number (VIN) number of that vehicle, it will tell you how much money you are paying to government and you will pay the money and carry your vehicle, but some senior officers did not want it to work and it has not worked up till today”.
“That is why you have to be doing manual request for assessment of a vehicle so that you can pass something behind. If they like they should not implement the reduction in duty rate. Are we not going to suffer it? All the while they ignored it, who has been the loser? Customs officers are dying daily because they are chasing vehicles across the border.
“All the West African countries are improving their port because all vehicles destined for Nigeria are going there. I don’t know why people don’t learn,” former ANLCA boss decried.
