Auto Policy Fuels Vehicle Smuggling in Nigeria - Clearing Agents

ABIOLA Seun |

Clearing Agents operating at the nation’s seaports have called on the federal government for a downward review of the national automotive policy saying it is fuelling massive vehicle smuggling.

In a press statement, the National President of the National Council of Managing Directors of Customs Licensed Agents (NCMDLCA), Lucky Amiwero who made this appeal in a letter he addressed to the Minister of Finance, Hajia Zainab Ahmed said the government should review the nation’s automotive policy in line with the international standard.

The body said the development was killing most business and investments in the country.

Worried by the negative implications of the policy on the economy, the body urged the Federal Government to consider the appeal in line with the campaign promises made to the masses to make life meaningful to them.

NACMDCA noted that the present automotive policy had resulted in huge loss of Customs revenue to government that depended on the 7% collection from import duty.

Also the licenced agents noted that there was massive smuggling due to high demand of motor vehicles in the country as a result of non-availability of affordable domestic production that was in place to meet up with domestic demand.

The association also decried high cost of purchase of vehicles in the country, due to the increase of tariff from previous duty rate of 5%,10%20% and 35% to the present rate of 35%-70% on all imported vehicles as against in the neighbouring West African countries rate.

The development, the association stated has led to the diversion of motor carrying vessels to neighbouring West African Ports, as a result of the non-availability and affordability of the domestic production, lack of mass transit in the country and local demand on the missing link in transportation in the country.

Further on the negative consequences of the tariff, Amiwero said it had led to reduction of the maritime work force by 70%, which affected mostly customs agents, importers, dealers and other Nigerians both home and abroad.

At the port the tariff has also led to reduction of activities by 40% in the operation of terminal operators who were to pay Federal Government based on cargo throughput earnings and shipping companies, which had retrenched large numbers of their staff.