FG imposes additional charges on imported vehincles

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  • as 5,000 flood-damaged cars land in Nigeria

The Federal Government has imposed an additional fee on all vehicles being imported into the country. This is being done through the implementation of the Na tional Vehicle Registration Policy (VREG).

New Telegraph leanrt that the Federal Ministry of  Finance kick-started the project at the Tin Can Island Port, Lagos last week. This is coming just as the  nation’s Roll-On Roll-Off port tool delivery of 5, 000 flood damaged vehicles from the United States and Canada.

The Federal Government, had in August 2020, commenced plans to create VREG) to curb evasion of  duty payment on imported vehicles and to eliminate the sale of stolen, accidentwrecked and unsafe vehicles from the market. The situation has led to widespread complaint by Customs licensed clearing.

Agents, who believe that the move would further jack up the prices of vehicles in the market. The Public Relations Officer of the Association of Nigerian Licensed Clearing Agents (ANLCA), Tin-Can Island Chapter, Comrade Onome Joy Monije, said that the amount charged under the VREG policy varied from one vehicle to another, depending on the model and year of manufacture.

Monije noted that the amount was an additional charge imposed on vehicles by the government, aside from the normal value charge on imported vehicles by the Nigeria Customs Service (NCS). Meanwhile, no fewer than 5,260 units of damaged and cheap used vehicles have been ferried by 14 roll-on roll-off vessels into Nigeria between September and October, 2021.

It was gathered that most of the vehicles were those that have been damaged by  flood in the United States and Canada, while some of them, which failed safety and emissions standards came from Italy, Belgium and Germany and other European countries. Findings revealed that an estimated 350,000 vehicles in United States were damaged this year by flood.

Data from the Nigerian Ports Authority (NPA)’s shipping position revealed that 4,210 units of used vehicles would be offloaded at the Port and Terminal Mult-services Limited (PTML), Tin Can Island Port before the end October, 2021. At the terminal, Gral. Sal Martin will be moored with 400units before the end of the month, while Paglia and Grande Marocco, have arrived at the weekend with 359units and 400units respectively.

Also, Grande Gabon has offloaded 350 units; Wisteria Ace, 847 units; MSC Immacolata, 400units; Grande Benin, 350 Units; Grande Lagos,
300units; Grande Argentina, 300units; Horizon Leader, 300units and Grande Sicilia, 204units

In September, 2021, the terminal took delivery of 1,050 units from Aurora laden with 300units; Grande Abidjan, 400 units and Grande Sierra Leone, 350 units. In the first quarter of 2021, data by the National Bureau of Statistics (NBS) revealed that Nigeria imported used vehicles valued at N311.63 billion.

The bureau explained that N140.2 billion was spent on importing used vehicles from the United States in Q1’21, while N33.78 billion was spent in Q2 of this year.

According the bureau’s data, in the second quarter of 2021, imports of passenger cars rose by 14.03 per cent to N311.63 billion compared to the second quarter of 2020 when the imports was N273.28 billion.

It added that N1.09 trillion was spent on vehicle imports in 2020, noting that  used vehicles valued at N198.4 billion was imported in the second quarter of 2020, while N210.05 billion and N241.91billion used vehicles were ferried into country in the third quarter and fourth of 2020 respectively.

According to NBS report, different used cars valued at N824.58 billion were imported by the country between second quarter of 2020 and first quarter of 2021. Total global vehicles importation into the country was $2.24billion in 2018 and $5.63billion in 2019.

It would be recalled that in May 2021, eight vessels also offloaded 2,850 units of used vehicles at PTML with Republican Argentina led by 300units, while Grande Morocco and Grand Lagos discharged 350 units and 400units respectively.

Also, 2,200 units were offloaded in February, 2021 by Grande Tema with 400 units; Grande Dakar, 400units; Grande Abidjan, 400units and Grande Senegal, 300 units, Grande Lagos, 400 units and Grande Argentina, 300units.