The Nigeria Automotive Manufacturers Association (NAMA) has assured that the federal government could earn about N213.5billion as duty payment from vehicle importation through the Nigerian seaports if the ban on importation through the land borders is effectively implemented,
The umbrella body of automotive manufacturers said last week that going by the National Automotive Design and Development Council’s (NADDC) report that the level of automotive imports to Nigeria in 2014 was over $5.0 billion, importation of vehicles through the nation’s land borders could not be less than $2.0 billion, which was not accounted for.
The association also projected that duty payments from such value could translate to over $700 million, but was lost to smugglers.
Executive Director, NAMA, Remi Olaofe, concurred that vehicle importation through the land borders constituted a major revenue leakage to the government.
“Import duties payable have all the while been going to the purses of our neighbours. Meanwhile, we as a nation are struggling to make ends meet.
“With the drive towards the full implementation of the National Auto Policy, the place of accurate data cannot be over emphasised. Investors need to be well aware of the size of the market in making investment decisions. The level of damage to our economy, both from fiscal and monetary policies’ perspective is overwhelming when we come to the realisation that the data we plan with are greatly distorted by the unreported imports going through our land borders.
“This explains why investors, foreign and local, are constantly at a loss when they compare observed market potential with what is officially reported,” Olaofe said.
He further pointed out that NAMA was not surprised to see the pressure being mounted on the Upper and Lower Chambers of the National Assembly by some parties to have the ban reversed, saying that it was worrisome that the legislators would succumb so easily.
According to him, the association considered it expedient to urgently disabuse the fear of job losses as a result of this policy initiative.
“The Federal Government, through the closure of our land borders to vehicle importation, has not placed any ban on the importation of vehicles. Its intervention is to avert the painful activities of smugglers of vehicles through our land borders and loss of revenue to our neighbouring countries and legitimate stakeholders in the auto industry.
“We also consider it paramount to enlighten everyone that inbuilt in the new Auto Policy are Distributors’ Schemes, Auto Finance Schemes and an organised Second Hand Market for the locally-used vehicles. We envisage a creation of over 4,000 direct jobs and much higher figure for indirect jobs coming with the policy.
“One is at a loss as to why Nigerians would prefer to bring in their vehicles through the neighbouring countries, knowing well that these vehicles are mostly from America and Europe by sea,” he said.
He also wondered why importers were unwilling to pay the duties and associated costs to Nigeria but would rather pay same to the neighbouring countries.
Olaofe further stated that the association was aware that the National Automotive Design and Development Council (NADDC) and the Nigerian Customs Service were working on a joint scheme to further curtail the avoidance of duty payments, especially by smugglers.
“This scheme, when operational, will complement the closure of land borders to vehicle importers and would eventually assist Nigerian Customs in realising duties accruable to government in full.
“We are equally aware that the Nigerian Customs Service is gearing up to ensure the increased traffic that will be passing through the sea ports are efficiently handled so as to reduce delays and avoidable costs at port of entry,” he said.
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