The decision of the Federal Government to increase the age of imported used vehicles from 10 years to 15 years has led to a marginal increase in the number of such vehicles brought into the country. However, the government is set to review the policy following criticisms by stakeholders, RASHEED BISIRIYU writes An increase of over 30 per cent may have been recorded in the importation of used cars into Nigeria, about three months after the Federal Government raised the age limit from 10 years to 15 years, investigation has shown.



But dealers of tokunbo cars, as the vehicles are popularly called, say nothing has changed in terms of sales figure. They claim that the new government policy, announced in November last year, had not translated into higher sales for them.



But a review of the policy may be in the offing, following continued criticism by local auto manufacturers, dealers and other concerned industrialists.



A circular from the Federal Ministry of Finance with reference number; BD.12237/S.403/Vol.1/206 and dated November 19, 2010, which was sent to relevant agencies, including the Nigeria Customs Service, stated that the President had granted an “extension of the age of used motor vehicles to be imported into the country from 10 years to 15 years from the year of manufacture.”



This has generated a heated debate from the public, with manufacturers and dealers of new vehicles vehemently condemning the policy as being retrogressive and capable of frustrating current plans to make more Nigerians drive new cars.



The Nigerian Automotive Manufacturers Association, which decried the policy, noted that its negative impact outweighed the short term benefits and, therefore, called for stricter control of the inflow of used vehicles.



The association also said that overused vehicles, which could no longer satisfy the emission standards in their countries of origin, would be imported to Nigeria. This, it stressed, would add to the country’s environmental problems and drain its resources.



An investigation conducted by our correspondent in Lagos on Saturday, indicated that a marginal increase had been recorded in the number of used vehicles imported into the country since January, when the 15 year age limit was expected to have taken effect.



The Public Relations Officer, NCS, PTML Command, Lagos, Mr. Chris Ogbonna, put the increase at about 30 per cent.



Although Ogbonna could not give accurate figure of vehicles that came into the country after the announcement because he was not with the record, he said, “Generally, there ought to be an increase in the cars. It may not be an upsurge. For instance, if we were having 100 cars before now, it should be between 120 cars and 130 cars now.”



Figures obtained by our correspondent from the Nigerian Ports Authority on the shipping position from January 28 to March 10, 2011, lent credence to the Customs man’s position.



For instance, the January 28 shipping position showed that 1,400 vehicles were imported as contained in some of the vessels waiting to berth at the ports. It also gave an average of 2,000 used vehicles on every shipping position list in February.



A similar trend followed in March. For instance, the March 4 list presented 2, 800 used vehicles; March 8, 2,250 vehicles, and March 10, 1,895 vehicles.



The Managing Director, Anafi Investment Nigeria Limited, Alhaji Shuaib Anafi, said it would take about five months to really know the impact of the new policy.



“It usually takes between 45 and 90 days for vehicles ordered from Europe to arrive the country,” he said.



He, however, admitted that there had been a marginal increase in the number of used vehicles being imported. The increase, he noted, was for vehicles whose ages ranged from 10 years to 15 years.



But the car dealers were of the view that the increase in the age limit of vehicles being imported had not affected their sales figure in any way. Government, they said, had only “snatched” some of the old vehicles away from the neighbouring countries’ ports and unauthorised borders.



The Managing Director, Sharp Cars Limited, a Lagos-based auto dealer, Mr. Ubani Chigozie, said that the ban on the importation of some old vehicles had not prevented over-aged vehicles from coming into the country.



He described the policy as an after-thought and that it had not changed anything. “No one dealer can say it has improved his business. When the ban was in force, the cars were still coming in,” he said.



But the Federal Government may soon reverse the policy, according to the Minister of Commerce and Industry, Senator Jubril Martins-Kuye. He gave the hint in an interview with our correspondent in Lagos on Saturday.



Although Martins-Kuye said that the policy was expected to assist people in the middle-class, who could not afford new cars, the government, he said, was worried about the spate of criticisms trailing the policy reversal and the concern expressed by local manufacturers.



He said, “The whole idea is that the Nigerian government wanted the middle class to come back to boost the economy. Government felt that the tokunbo vehicles were more affordable to the middle class.



“But that decision will be revisited as soon as possible. There is a new thinking in government and the issue may be revisited because this is a listening government. All the comments are being harvested and they will be acted upon. I don’t know how soon.”



The minister, who said that government was seriously thinking about bringing back more motor assembling plants, expressed regret that the project was not one of the things he could point at as an achievement since he returned to the government in the last one year.



He recalled that Nigeria used to have viable assembling plants in the 1970s, which increased from two to six.



“In South Africa, they currently have about 16 assembling plants producing vehicles, some of which come to Nigeria. We are importing about 80,000 Toyota vehicles; the albatross of our industrial development is electricity,” he said.






http://www.punchng.com/Articl.aspx?theartic=Art201103142391884

Jonathans method of boosting Industrialization; Opening the port to every garbage around the world

One day all the cars in Nigeria will come out and there will be a stand still if they don't build new roads. Already on the verge of happening in some towns.

wales:


This has generated a heated debate from the public, with manufacturers and dealers of new vehicles vehemently condemning the policy as being retrogressive and capable of frustrating current plans to make more Nigerians drive new cars.



The Nigerian Automotive Manufacturers Association, which decried the policy, noted that its negative impact outweighed the short term benefits and, therefore, called for stricter control of the inflow of used vehicles.

May God punish these criminals. Importing a $19,000 toyota and selling it for 6 million Naira. Their greed is the main thing preventing Nigerians from buying new cars.

fried-rice:

Jonathans method of boosting Industrialization; Opening the port to every garbage around the world

typical nna mentality; okrika reigns supreme

I luv this development, Tokunbo cars have reduced the number of 'tuke-tuke' on our roads. 504, 505, VW bettles no longer reign supreme on our roads because the middle class can now afford better second hand air baged/ABS etc compliant vehicles at a reasonable price.

THE PEOPLE BENEFITING FROM WILL PRESS FOR THE BAN

MY QUESTION IS, THE MONEY FOR THE CLEARANCE WHO DEY COLLECT AM?

texazzpete:

May God punish these criminals. Importing a $19,000 toyota and selling it for 6 million Naira. Their greed is the main thing preventing Nigerians from buying new cars.

, GOD bless u my brother, this is d stark truth! Hopefuly dis wil make cars more affordable. Even d so called new cars are refurbished junks!

wat do u xpect frm a 3rd world?

fried-rice:

Jonathans method of boosting Industrialization; Opening the port to every garbage around the world

Jonathan made d best decision because those vehicles wld still find there way into d country thru our borders thereby making those custom men richer and we dnt hv an enabling environment for any assembling plant to succeed due to power problem. Innoson motors is just an assembly plant and their vehicle is so inferior and yet very costly and they cnt meet our demand wtout foreign assembling plants and manufacturing doing it here,so lets make do wt Toks for nw.

turboman:

I luv this development, Tokunbo cars have reduced the number of 'tuke-tuke' on our roads. 504, 505, VW bettles no longer reign supreme on our roads because the middle class can now afford better second hand air baged/ABS etc compliant vehicles at a reasonable price.

You've made my day, LOL

does anyone know "yeri n beto", it means move your head so I can spit. 2

turboman:

I luv this development, Tokunbo cars have reduced the number of 'tuke-tuke' on our roads. 504, 505, VW bettles no longer reign supreme on our roads because the middle class can now afford better second hand air baged/ABS etc compliant vehicles at a reasonable price.

-door!

@ tlops,

what type of yeri-n-beto and how many do you want?

Is this devolopment already taken effect or the government is still thinking about it?
and pls i want to know from the house what deos the 30 percent increase means on vehicles from the por?
deos it mean that you will pay 30 percent of the total amount bought the vehicle?

to be honest, I think its those selfish wicked bastards Traitors Nigerians that are again against the 10 to 15 years old used cars importation policy, I can bet with you all that these same people had once held a strong post in the Nigerian government and had embezzled our billions and invested them into bringing new cars into the country , I mean to be honest how many of the middle class that we have in Nigeria today can afford a brand new car based on their monthly salary? pls my true bro/sis, lets us remind ourself that we buy tokunbo cars not because we desire to but because our leaders keep selling us out and leaving us all with little or no options. pls you bastards that are against this good policy remember that you don't (put the CART before THE HORSE rather you put the HORSE before THE CART) meaning that you guys should do the proper thing first , jump start the economy first and empower the the people then we shall be able to afford your cut throat prise brand new cars. thank you

BABA_ODU:

to be honest, I think its those selfish wicked bastards Traitors Nigerians that are again against the 10 to 15 years old used cars importation policy, I can bet with you all that these same people had once held a strong post in the Nigerian government and had embezzled our billions and invested them into bringing new cars into the country , I mean to be honest how many of the middle class that we have in Nigeria today can afford a brand new car based on their monthly salary? pls my true bro/sis, lets us remind ourself that we buy tokunbo cars not because we desire to but because our leaders keep selling us out and leaving us all with little or no options. pls you bastards that are against this good policy remember that you don't (put the CART before THE HORSE rather you put the HORSE before THE CART) meaning that you guys should do the proper thing first , jump start the economy first and empower the the people then we shall be able to afford your cut throat prise brand new cars. thank you

nicely said! leave the policy as it is now. create a conducive industrial atmosphere so new cars can be manufactured/assembled in nigeria, jumpstart the economy so the people are empowered and then just sit back and watch tokumbo business fizzle out naturally.

What wrong about importing used cars? In the true sence of it there should be no age limit on car imported into the country, what government should do is to set up technical inspection stations where, cars imported are inspected for road worthiness before there are allowed onto public roads. In western Europe where I live, most people don't buy new cars, simply because they cannot afford them.
Like someone said earlier, even if they completely banned, they will still find their way into the country and Nigeria will be loosing billions of naira in tax revenue. Mr. Jonathan knows this and it's a smart move on his part. I say; Let the policy stay.

this is yet to bring down the prices of tokunboh vehicles, They are still selling at over N1m