N490.BILLION EXCESS: NIGERIA GAINS MORE AS USED VEHICLE IMPORTATION DROPS

Local Car News #Update

Vehicle importation into the country has dropped to 19.75% and a whooping N490. Billion has been gained in the Last three years, this is as a result of the Federal Government’s Auto Policy. According to New Telegraph, the implementation of the 70 percent tariff on imported vehicles started in January, 2015.

The Federal Government made the decision in 2014 to encourage local auto assembly plants and to cut the N600 billion spent annually on importation of vehicles into the country. In a statement made by the National Automotive Council (NAC) Director General, Mr. Aminu Jalal, he said: “Nigeria spends nothing less than about N600 billion to import 400,000 units of used and new vehicles annually.”

However, statistics by the Nigerian Ports Authority (NPA) shipping position revealed that the policy has cut importation drastically since its introduction almost four years ago.

However, in 2015, imports from the United States of America plunged to less than 40,000 units because of the auto policy. In 2017, over 73,000 vehicles worth N109.5 billion were imported into the country, this was 18.25 percent of the 400,000 units it used to import before the policy was introduced.

The Managing Director of Toyota Nigeria, Mr. Kunle Ade Ojo, had said in Lagos that forex and high interest rates were the major challenges of bringing vehicles into the country.
Besides, he noted that retail sales had reduced from about 32,000 cars in 2015 to about 18,000 units in 2016.

In terms of our share of the imports, we had about 43% in 2015 and that has dropped to about 38% in 2016, we hope for a better score this year as well” he said.

Between last November and December, a total of 8,300 used vehicles were shipped to the Port and Terminal Multi-services Limited (PTML) located at the Tincan Island Port in Lagos  following the fact that over 100,000 cars were being imported into the country from the United States in the past years.


These vehicles were conveyed to the port by 16 vessels from United States and Europe through direct shipments.

 

 

Source:

New Telegraph

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