[size=14pt]Auto makers decry 15 yrs age limit for Tokunbo vehicles [/size]
By Moses Akaigwe [igwemos@sunnewsonline]

Friday, December 10, 2010
• ’Used vehicles hurt economy’




http://odili.net/news/source/2010/dec/10/503.html

“The Federal Government seems to be more focused on short term goal of earning more revenue than the implications of its action on industrialization, economic activities, employment and vision 20:20:20”.

Last week’s extension of the age limit for used vehicles imported into the country from eight to 15 years by the Federal Government, has continued to draw the ire of stakeholders in the Nigerian auto industry, including the Nigerian Automotive Manufacturers Association.

In a statement issued in Lagos, NAMA, which is an association of all vehicle companies, like the older PAN Nigeria Limited and ANAMMCO, as well new comers like Innoson in Nnewi, argued that the negative impact of the policy shift on the economy will outweigh the short term benefits.

Signed by the Executive Director, Mr Arthur Madueke, statement said: “The Federal Government seems to be more focused on short term goal of earning more revenue than the implications of its action on industrialization, economic activities, employment and vision 20:20:20”. It, therefore, called for stricter control of the inflow of the vehicles.

Government’s new position on the importation of used vehicles was made known last week when the Finance Minister, Olusegun Aganga, announced that the second-hand automobiles would continue to come into the country provided they are not older than 15 years. Hitherto, the age limit for imported used car was 8 years while there was none for commercial motor vehicles.

The effect, Madueke remarked, had been the importation of motor vehicles, which could no longer satisfy the emission standards in their countries of origin, and which now add to Nigeria’s environmental problems as well as drain the resources which would been invested in other enterprising sectors, with high yield returns on employment and rapid industrialization.

This has always been the stand of the local auto industry stakeholders, who have over the years decried the influx of the used vehicles like cars, buses and trucks – a situation which, according to them has contributed to the woos of the manufacturers, apart from the implication on the economy generally, the environment and road safety.

It was in response to these concerns that government placed a ceiling on the age imported vehicles, but even though the age limit was not strictly adhered to, no thanks to the importers, the colluding Customs and the patronage of the ports of neighbouring countries, an official extension of the age limit of the tokunbo vehicles was a near summersault the NAMA members never expected.

The Executive Secretary gave another reason why his association disagrees with government on the issue: “It is an established fact that the useful age of a car is estimated at nine years. Subsequent use of such a car after this period is inefficient and not cost effective, therefore the advocacy for limiting the age to eight years is borne out by technical and economic facts. The age limit for commercial motor vehicles should be pegged at 10 years for the reasons given above”.