Automobile dealers have complained about their inability to import fairly used cars into the country due to the increase in import duty, hike in tariffs, scarcity of foreign exchange (FX) and other related taxes.
Reports show that while some dealers have now resorted to recycling of Nigerian used cars, others have abandoned the automobile business totally.
Importers have complained of a hike in the amount used to clear containers at the custom duties office. One Mr Onyeoma CY took to social media to lament that it used to cost N5m to clear a container, now it costs N21m to clear the same container.
The President of the Association of Motor Dealers of Nigeria (AMDON) who spoke with Daily Sun said the hikes taxes, fuel and tariffs have affected the importation of cars into Nigeria. A situation which he says have driven a lot of importers out of business.
“The implication of this is that there would be safety related issues because most of what is happening now is recycling of Nigerian used cars.
“Importers can no longer bring in cars due to high foreign exchange rate. Apart from exchange rate, there is the increase in import duty, which we have made clear to the government is affecting us negatively and have asked that something be done about it. The hike has had adverse effects on our members because it has chased away some of them away from the business.
“Even when you buy a car and sell it at a profit, you cannot buy another one with the current price we use to import and that is why some people have abandoned the business. The government needs to take urgent steps to address the situation,” he said.
He said if the government fails to do something about it, apart from the transportation that will be badly affected, the safety of Nigerians and the economy will be affected.
“The economy is all about the movement of goods, services and people from one place to another. That is what forms the economy. So, anything that affects transportation affects the economy of the country,” he said.
He warned that the consequences of recycling old Nigerian used vehicles is the possibilty of increased accident rates due to the wear and tear suffered from over use.
