Importation of vehicles to Nigeria from Europe, Asia and United States has reduced by 81.25 per cent or N490.5 billion in the last three years because of the Federal Government’s auto policy, New Telegraph has gathered.
The implementation of the 70 per cent tariff on imported vehicles started in January, 2015.
Importers and car dealers, who formerly paid 20 per cent duty and two per cent levy on new cars, are now paying 35 per cent duty and another 35 per cent levy as contained in the policy.
Government took the decision in 2014 to encourage local auto assembly plants and to cut N600 billion spent annually on importation of vehicles.
Director General, National Automotive Council (NAC), Mr. Aminu Jalal, said Nigeria was spending about N600 billion to import 400,000 units yearly of used and new vehicles.
However, statistics by the Nigerian Ports Authority (NPA)’s shipping position revealed that the policy has cut importation drastically since its introduction almost four years ago.
In 2017, the country imported 73,000 vehicles worth N109.5 billion or 18.25 per cent of the 400,000 units it used to import before the policy was introduced.
It was gathered that the imports may further drop this year as only eight vessels were laden with 3,210 units of used vehicles in January, 2018.
The vessels include Grande Cotonou with 400 units; Grande Gabon, 300 units; Grande Dakar, 400 units and Grande Morocco, 350 units. Others are Grande Coastal Davorto, 350 units; Grande Luanda, 400 units; Grande Senegal, 350 units; Pagna, 380 units; Parana, 280 units, bringing the total to 3,210 units
Between last November and December, a total of 8,300 used vehicles were shipped to the Port and Terminal Multi-services Limited (PTML) at Tincan Island Port in Lagos.
The vehicles were conveyed to the port by 16 vessels from United States and Europe through direct shipments.
In December, 2017, 3,550 units were brought to the terminal by 10 vessels led by Grande Coastal Davoria with 350 units; Grand Lagos, 450 units; Grande Togo, 300 units; Grande Tema, 400 units and Grande Luanda, 400 units. Also included are Grande Guinea, 350 units; Rep Argentian, 300 units; Paran, 300 units; Grande Abdjan, 400 units; and Grande Congo, 300 units.
It would be recalled that before the hike in import duties on second-hand vehicles, Nigeria imported more than 100,000 cars per year from the US.
However, in 2015, imports from the U S plunged to less than 40, 000 units because of the auto policy.
The Managing Director of Toyota Nigeria, Mr. Kunle Ade Ojo, had said in Lagos that forex and high interest rates were the major challenges of bringing vehicles into the country.
Besides, he noted that retail sales had reduced from about 32,000 cars in 2015 to about 18,000units in 2016.
Ade Ojo added that car imports dropped by about 60per cent from about 18,000 units in 2015 to 7,000 units in 2016.
He said: “In terms of our share of the imports, we had about 43 per cent in 2015 and that has dropped to about 38 per cent in 2016.”
*New Telegraph
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