The Nigeria Customs Service seized 533 vehicles worth N2.92 billion in duty-paid value between January and November 2023. Car dealers have blamed this seizure on the high duty rate for clearing imported products, especially vehicles.
The PUNCH reported that the dealers stated that the high tariff rate imposed by the Federal Government through the Central Bank of Nigeria had encouraged car importers to seek ways to circumvent the conventional importation process.
Earlier this month, tariffs due on imported products at Nigerian ports had increased as a result of the Federal Government’s increase in the exchange rate for cargo clearance via the Central Bank of Nigeria.
It was also stated that the recent increase marked the fourth time this year that the exchange rate for cargo clearance had been raised.
In June, the CBN changed the currency rate from N422.30 to N589 per dollar. It was modified to N770.88/$1 in July, then it was adjusted to N783.174/$1 in November.
According to the National Public Relations Officer of the NCS, Abdullahi Maiwada, 533 units of vehicles with a duty paid value of N2,919 billion were confiscated between January and December 2023.
However, in response, the Secretary-General of the Lagos State Motor Dealers Association, Tai Olaniran, stated that the high tariff rate for imported products, including automobiles, has prompted vehicles imported to invent ways of smuggling them in.
“The government is not serious, and I say that because they are supposed to lower the duties for clearing goods, including cars, as is done in other countries. Lowering duties discourages smuggling or transporting vehicles through illegal methods, and the government makes more money.
“We dealers have decided to buy used vehicles from Nigeria; we no longer buy direct tokunbo. The duty should be reduced because everyone need transport, allowing the government to earn more money. People will not smuggle if the duties are modest, and even if they do, it will be little,” he said.
A car dealer of Mezie Motors at the popular Berger Automobile Market, Mr Chinonso Amariwu, also spoke up, saying, “The impression that high duty rates have increased smuggling is true. One of our coworkers has been a victim of this. He was duped; his car was not properly cleared, and he was stopped by NCS officers on his way to Abuja.
As a result, the increase in duty rates has encouraged many people to bring in vehicles via illegal channels. So this is the primary reason they seize these cars,” he said.
