Land border ban yet to spark off massive importation at seaport

Abiola Seun |

The Federal Government land import ban on importation of vehicles through the land borders is yet to spark off massive importation of vehicles through the nation’s seaports more than one year after its implementation.

The federal government had in December 2016 placed ban on importation of vehicles through the land borders citing loss of revenue. But, instead of the ban to influence massive importation of vehicles through the nation’s seaports, it has only encouraged smuggling at porous land borders of Seme and Idiroko.

According to data made available by the PTML Command of the Nigeria Customs Service, only 108, 538 vehicles were imported into Nigeria from January – December, 2017- first year of implementation of the policy.

The data made available by the Public Relations Officer, Yakubu Muhammed, shows that all vehicles which passed through the command in 2017 was 108, 538. It was gathered that 27,083 was imported from January to March while 34,216 was imported from April to June 2017 while 47, 239 were imported from July to December 2017.

The number was 12,316 higher than what was imported in 2016 when the policy was not enacted. While 96,222 were imported through the seaport in 2016, 131,994 were imported through nation’s seaports in 2015.

Industry stakeholders have identified the high import tariff on imported used and new vehicles as one of the reasons why the policy is yet to spark massive importation through the seaports.

Recall, that the former President Goodluck Jonathan had imposed 70 percent on importation of new vehicles and 35 percent on used vehicles with the aim of boosting local production. The tariff even though reduced the number of vehicles brought into the country, failed to boost local production but instead fuelled smuggling from neighbouring Benin Republic and Togo.

Speaking on vehicle ban through land borders not impacting on importation at seaports, the immediate past President Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shittu advised the government to reduce tariff on brand new vehicles and maintain tariff on used one.

He said Nigeria is a victim of smuggling as lots of people are bringing vehicles into the country through un-approved routes, adding that, that is not good for a developing economy like Nigeria.

“The greatest incentive is to reduce tariff on newer vehicles and increase tariff on old vehicles. If you go to West African coast, the newer your vehicle the lower your tariff but when a brand new vehicle pays 70 percent and someone doing assemblage pay 20 percent that is what stops people from importation.”

“Also, because people are using unapproved routes to bring in their vehicles. There are no records of how many vehicles have come into the country through unapproved routes and that is not good for the economy. It also means the locally assembled vehicles effort which government has supported so much has not impacted on the vehicles production because if the price of locally assembled vehicles are cheaper enough, there won’t be any need of going abroad to bring in vehicles especially accident vehicles even though it gives jobs to our local artisans but it is not good for a growing economy like ours.

Government needs to have a deliberate policy on how to stop vehicle importation through the land borders.”