Three Years after Auto Policy, Nigerian Importers Return to Massive Vehicular Importation

By ZION Olalekan |

Fresh indications have emerged that three years after the administration of President Goodluck Jonathan introduced the Auto Policy in 2015 which automatically imposed 35% levy and 35% duty on all new vehicles, importers have now gone back into vehicle importation.

Investigations carried out by nigeriamaritime360.com at one of the largest vehicle importing terminals in Nigeria, PTML Terminal showed that the terminal is once again bubbling with activities as its vehicle terminal is now filled up.

However, freight forwarders at the terminal have said that most of the vehicles sighted by our correspondent are mostly damaged vehicles ravaged by flood and imported into Nigeria.

In a recent interview, the Customs Area Controller of Tin Can Island Customs, Compt Musa Baba Abdullahi said importers have resulted into damaged

vehicles in order enjoy 30% rebate in duty.

However, one of the operators at PTML Terminal, Mr Ugochukwu Nnadi said that three years after the Auto Policy of the federal government, importers are now going back into importation of vehicles and this is why there is an increase in vehicle importation at PTML terminal.

Nnadi, a chieftain of National Association of Government Approved Freight Forwarders (NAGAFF) however noted that presently, no importer goes to Europe or America to buy a new standard vehicle and bring it to Nigeria, he said this is because the vehicles are usually over-valued and over-taxed by Nigeria Customs.

He equally attributed the increase in importation of vehicles to the valuation officer at PTML customs, Deputy Comptroller Abiakam. According to Nnadi, whenever you want to put up a suggestion to her, she listens, whether she makes use of it or not.

He said “Importers are now going back into importation and this is why there is an increase in importation at PTML”

“The auto policy of 2013 put so many people out of business, I personally lost about fourteen million naira to that policy, but five years later, people are now going back into importation, people have started adjusting to the current situation”

“No matter the exchange rate, whenever there is a change in government policy, people are affected”

“Imported vehicles in Nigeria are highly overvalued, from the manufacturer standard and World Customs Organisation standard, every vehicle losses ten percent of its value every year, after three years, the value you place on that vehicle is just your own imagination, but you see vehicles that are fifteen years old coming into Nigeria and they are out over-valued, and the amount the customs give is more than the price the used vehicle is sold, so the other ones Nigerians can buy is the damaged vehicles, it is sold to them as salvage vehicles, it is sold as giveaway price.

“Nigerians manage to bring it down here, they repair and sell”.

Tin Can Customs boss, Baba Abdullahi had said recently that for any vehicle to be considered accidented in order for it to enjoy the 30% rebate, the chassis of the vehicle, the airbag and other key components of the vehicles must be clearly seen to be affected.

“We discovered that some of these accidented vehicles are cheaper even from their countries of origin, and for some of the vehicles that they might want to sell thereafter, they might decide to bring these ones just to make some profit”

“If you go to the car parks now, most of the vehicles there are actually accidented vehicles and there is nothing customs can do about it, if tomorrow the federal government decides that customs should stop giving rebate on accidented vehicles, our own is to enforce fiscal policies in terms of trade”.