Reconsider ban on vehicle importation through land borders, dealers urge FG

Some car dealers in Lagos and Kano state have urged the Federal Government to rescind the decision on the ban on importation of vehicles through land borders to aid inclusive economic growth and crime reduction.

The car dealers told the News Agency of Nigeria (NAN) in Lagos, on Wednesday, that the policy was ill-timed, considering the recession, high foreign exchange rate and increasing unemployment.

NAN recalled  that the Federal Government had, on December 5, 2016, announced a ban on importation of used and new vehicles through land borders with effect from January 1.

Prince Kingsley Godswill, Managing Director, Attitude Auto Mart, said the economic situation in the country had reduced ability of Nigerians to purchase automobiles.

“The car lots of many auto dealers that import massively into the country are almost empty.

“The exchange rate is killing the business and prices of automobiles are going beyond the reach of an average Nigerian.

“The land border ban will further worsen the situation, especially for new car dealers that prefer the land borders because of affordability.

“My appeal to the government is to reverse this order because we are only struggling to survive in this harsh economic climate.

“We understand that the government needs to improve its revenue base but it can be done by strengthening the customs service and instilling transparency in its operations,” he said.

Mr Olaseni Obafemi, the Chief Executive Officer (CEO), Emmoba Motors, Lagos, said a downward review of duties on imported automobiles would boost economic activities and generate more revenue for government.

“The current price of a vehicle could purchase three vehicles before now, due to the fluctuations in the foreign exchange rate.

“Due to the decline in the value of the naira, unemployment rate and increasing cost of living, the attraction for automobiles has reduced drastically.

“If duties paid to customs are reviewed, vehicles will be affordable for the citizens and life would be easier for all.”

Mr Felix Agbaje, the General Manager, Exotic Autos, warned that the ban would worsen unemployment, poverty and encourage smuggling.

“This policy is not thoughtful. It holds a lot of implications for the economic development of the country.

“There are many unemployed youths in the country striving to survive whether by legal or illegal means.

“In this business, we face a lot of challenges of auto snatching from armed robbers; the country has many porous borders and these daring groups may increase smuggling activities.

“Before the government rolled out policies, it should consult extensively with stakeholders to appreciate the likely effects on their businesses,” he said.

A car dealer in Kano State, Alhaji Isa Yusuf, said there was the  need for the  Federal Government to establish  dry ports, in view of the ban of imported cars through land borders.

Alhaji Yusuf  said he  had already  been informed   that  there was a  plan  by the  Federal Government to establish such ports in Kano and Katsina states  and expressed concern over the delay.

According to him, most of the major importers of cars in Cotonou, Benin Republic, would shift their business to Nigeria and this would be of economic benefit to the country.

He, however, said “if you import cars via the land borders, one is bound to spend huge amount of money and this would not be  of  benefit to the government.”

He said if government could establish  dry ports and  reduce  import duty  on cars, it would aid importation of cars and boost the economic development of the country.

He noted that  as a dealer, the money spent on importing vehicles through the Niger Republic and Maje land borders was higher than those imported through the seaports.