The National President of the Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin has warned that the inconsistency in the Naira exchange rate against the Dollar will only mean that the prices of imported vehicles will continue to rise.
Speaking with the Nigerian Tribune exclusively, the AMDON National President asked Nigerians to compare the difference between the exchange rate of the Naira to the Dollar between 2015 and 2022, and know the difference in what is being used to source for Dollar by vehicle importers.
According to Prince Adedoyin, “Vehicle importation is tied to the Dollar. It is the Dollar that we use when we want to import vehicles into Nigeria. For many of us, we source for Dollars from the black market because we cannot get it from the banks due to very stringent conditions.
“With the Naira sliding to N610 against the Dollar just recently and the gap between the official and parallel market exchange rate rising to N191, it only means Nigerians will have to pay more to buy imported vehicles because it is the Dollar that we use to bring in these vehicles.
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“We are in business to make profit, so it is what we buy that we will sell. As the Naira continues to slide, the prices of imported vehicles, both new and Tokunbo continue to rise. Nigerians should be braced to pay more for imported vehicles except a miracle happens, that’s if the Naira appreciates against the Dollar.”
On the commencement of the Vehicle Identification Number (VIN) Valuation by the Nigeria Customs Service on imported vehicles at the ports, the AMDON National President said that all hitherto raised observations have been factored in by the Customs and vehicle importers are still observing the implementation process to ensure it goes as agreed.
“Yes, on the Customs VIN, we objected to some issues alongside the clearing agents at the ports. We stood by the clearing agents because we are the ones putting down the money to import these vehicles from overseas. So, together with the clearing agents, we resisted the first VIN that was introduced and it has been reviewed.
“We are still observing the implementation process and will give our views maybe after one or two weeks of implementation,” Prince Ajibola Adedoyin told the Nigerian Tribune.
Recall that the Naira slid to N610 per dollar over the weekend at the parallel market in Lagos and Abuja, thus widening the gap between the official and parallel market exchange rates to N191. According to Bureau De Change sources, the recent rise in the exchange rate of the dollar at the black market is due to heightened political activities as the political parties will hold their primary elections this week. It is believed that many politicians seeking election use dollars to ‘settle’ delegates to vote for them.
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