From next month, importation of vehicles through the land borders will be prohibited, according to a new prohibition order issued by the Federal Government to that effect. The prohibition order covers all new and used vehicles.
A statement issued on Monday by the Nigeria Customs Service indicated that the ban was sequel to a presidential directive restricting all vehicle imports to the seaports with effect from January 1, 2017. The restriction on importation of vehicles follows that of rice, whose imports through the land borders had been banned since April 2016.
Issues around importation of cars have been old story in Nigeria.
The Goodluck Jonathan administration came up with a new automotive policy that raised the duty paid on imported vehicles from 20 percent to 70 percent, covering 35 percent duty and 35 percent levy, and this took effect in 2014.
The policy, which aimed to discourage importation and increase patronage for locally assembled cars, as Nigeria is yet to join the league of countries manufacturing cars, became counterproductive as many Nigerians who could not afford to buy ‘expensive’ locally assembled cars, abandoned the seaports, and started patronising port in the neighbouring countries of Benin Republic and Togo, where it was cheaper to import and bring into the Nigerian markets through the land borders.
Many investors that built roll-out, roll-off (RORO) terminals, which specialise in handling imported vehicles, were out of business as over 60 percent of their cargoes were diverted to the above mentioned ports. This also led to massive loss of jobs for employees of these roll-roll ports and revenue for the port owners and the Federal Government.
Worried by these loses, the Federal Government last Monday took the decision to ban importation of vehicles through the land borders. The new policy, which was highly welcomed by stakeholders, especially terminal operators under the aegis of the Seaport Terminal Operators of Nigeria (STOAN), was also seen to be ineffective in bridging the already existing gap. But The House of Representatives, yesterday, asked the Federal Government to suspend the ban on importation of vehicles through land borders in Nigeria.
Consequently, the lawmakers, at plenary, mandated the Committees on Governmental Affairs and Customs and Excise to ensure implementation and report back to the House within six weeks for further legislative input. This development was based on a motion, entitled ‘’Need to suspend The Ban On Importation of Vehicles Through Land Borders, promoted by Abdulahi Salame, APC, Sokoto.
Meantime, stakeholders in the maritime industry were divided on the issue, yesterday. While some supported the ban, others kicked against it. Salame, in his presentation, argued that those making these policies have failed to patronise made-in-Nigeria goods, especially Nigerian assembled vehicles, which are, in any case unaffordable for 80 percent of Nigerians.
He said: “The percentage of Nigerians who can afford cars has declined drastically, following the decline in the value of the Naira, rising inflation, unemployment and high cost of living that have bedeviled Nigeria where over 80 per cent of Nigerians live below $2 a day
Salame also expressed worry that “the ban will cause more harm than good as it will certainly lead to increase in smuggling,deprive poor Nigerians access to acquiring vehicles, skyrocket the prices of cars cleared at the Wharf, increase inflation and further mount pressure on the already weak naira and lead to idleness, insecurity and criminality at the border points.’
Tags:
News