Despite the removal of fuel subsidy by the Federal Government of Nigeria, auto dealers in some part of Lagos have said that the price of fairly used vehicles commonly called ‘Tokunboh’ remained the same as it was in 2011.
According to them, the Christmas and New Year celebrations did not put smiles on their faces before the removal of subsidy.
Despite the removal of fuel subsidy by the Federal Government of Nigeria, auto dealers in some part of Lagos have said that the price of fairly used vehicles commonly called ‘Tokunboh’ remained the same as it was in 2011.
According to them, the Christmas and New Year celebrations did not put smiles on their faces before the removal of subsidy.
Speaking with some of the dealers in Lagos last week, one of the major dealers at the popular freedom park in Mile 2, Mr. Evans Ukaonu, explained that the prices of vehicles are still the same and that the subsidy removal has nothing to do with the business at the moment.
The dealer said that the auto market has no fixed price on vehicles. He said that instead of the price of a vehicle to appreciate in sale, it depreciate as some of the traders are ready to sell below what is obtainable in the market.
‘’The Fuel subsidy removal has no direct effect on the sale of cars, even though people are yearning for the price of fuel to be reverted to N65 per litre. The only problem on ground is that some of the dealers that travelled out of Lagos are yet to come back because of the unforeseen occurrence which of course is the hike in transportation’’ he explained.
Ukaonu said that the sale of vehicle has dropped for the past three years due to less money in circulation, which buyers had been complaining about even though they were able to to buy.
He however added that the few dealers available at the moment are also finding it difficult to transport themselves from their houses down to the market as most of them come from a very far distance.
‘’As at the moment, some of the dealers that are in Lagos have difficulties of coming to the market to sale due to the transport situation in the country. Some live in Badagry while others come all the way from Ikorodu to sell cars and it is uneasy to sell a single vehicle’’.
At the popular Berger market price of vehicles also remain static as some of the dealers affirmed that the removal of subsidy has nothing to do the sale of vehicles at the moment.
Mr. Emeka Ozomena, also a car dealer, said that the prices of vehicles remain the same at the moment but disclosed that certain factors might affect the increase in price
According to him, since price of all commodities have increased there is tendency that later in the year the price of vehicles will also increase.
Ozoemena noted that in few weeks’ time, when business activities fully commence, there might be an increase in the sale of fairly used vehicles.
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