The fall in the naira has made some car dealers in Lagos to appeal to vehicle shippers to stop importation of vehicles at the moment because of continuous hike in dollar.
Some of the dealers in Lagos expressed worries over the rising naira devaluation and the attitude of buyers.
A Dollar sells for N199.28 as at Friday last week and the exchange rate is affecting importation of vehicles and other cargoes into Nigeria.
The fall in the naira has made some car dealers in Lagos to appeal to vehicle shippers to stop importation of vehicles at the moment because of continuous hike in dollar.
Some of the dealers in Lagos expressed worries over the rising naira devaluation and the attitude of buyers.
A Dollar sells for N199.28 as at Friday last week and the exchange rate is affecting importation of vehicles and other cargoes into Nigeria.
A cross section of dealers who spoke with Auto Port Weekly in the last two weeks advised importers of used vehicles to halt importation of vehicles because it there is no value added dealers who sells such vehicles.
According to them, sale of vehicles have been very poor since the exchange rate dropped.
Though, importers has reduced their volume of importation by half of what they normal do in time past, dealers said cost of buying and that of clearing the vehicles will further affect all parties involved in business chain.
It would be recalled that the Central Bank of Nigeria (CBN) had on November 25, last year further devalued the naira by 8% due to the falling prices of crude oil in the international market
Mr. Edwards Osahon , a dealer at Berger Market along Apapa Oshodi expressway , said that at a time when vehicle sale has dropped there is no need for the importers to ship used vehicles into Nigerians because of the price of selling used cars at the market.
Osahon lamented that the naira is getting weaker by the day, yet adamant importers continue to import.
He appealed to importers to take precaution at the moment because used cars available for sale are yet unsold.
He described importers attitude of importing used vehicles despite the lull at the moment as "penny wise and pounds foolish", pointing out that "it makes no sense importing used or even new ones at the moment.
Also speaking, another dealer; Stephen Uzonuoma reiterated that the number of vehicles put on sale within the Ikeja environs has increased ,even as he appealed to importers to shun vehicle import at a time when the naira is getting weaker.
"I don't think it makes any sense at the moment when people hardly buy used and even new cars because of the price", he said.
It will be wise for shippers of vehicles to stop importing cars at this time, because we spend more naira to exchange for dollars overseas and even freight charges and transport cost of those fairly used imported cars are all in foreign currencies, therefore it is not the right time for them to bring in more vehicles for overseas", he stated.
He appealed to importers to concentrate on vehicles already at their disposal on the need to sell them off their parks and shops, adding that selling what is on ground is more important.
Uzonuoma however admitted that despite importers’ move to ship their vehicles through Cotonou ports, the exchange rate still plays a major role in the chain.
He said presently, most of car dealers are struggling to remain in business and there is need to understand how the trade works.
Discussion about this post