Folashade Alli
The National Association of Government Approved Freight Forwarders (NAGAFF) on Friday said the new import duties and levies on vehicles would negatively affect their sale.
Mr Eugene Nweke, the National President of NAGAFF, made the observation in Lagos.
The Federal Executive Council (FEC), had in October, approved a new national automotive policy aimed at encouraging local production of new vehicles.
The government had also raised the import duties and levies on imported new and used vehicles from 20 per cent to 70 per cent.
Nweke said the Federal Government should have rehabilitated the motor vehicle assembling plants in the country before making the policy.
“What is the state of Volkswagen of Nigeria in Lagos, the Anambra Motor Manufacturing Company (ANAMMCO), Steyr Nigeria in Bauchi, Leyland Nigeria in Ibadan and the National Truck Manufacturers in Kano?
“The policy will make the desired impact in creating jobs and attracting billions of naira in revenue if these assembling plants are working effectively,’’ he said.
He said that price of imported cars, currently being sold between N1.4 million and N3 million, would go up to about N5 million.
“Also the price of the fairly used vehicles popularly called “Tokunbo’’ being sold for N800, 000, will rise to N1.3 million or more.
The NAGAFF leader said it was regrettable that while government’s new tariff on cars showed an increase of 48 per cent over the old rate, it failed to put into consideration the state of its borders.
“We have 37 approved borders guarded by security officials, but we have about 200 unapproved routes where smugglers can use to bring in cars.
“I am afraid that the country will lose revenue through this policy and insecurity problem will also rise.
“Many people will be out of job as a result of the new policy,’’ Nweke said.
He said that some importers who were bringing in cars for sale would no longer be able to do so and some of their staff would be disengaged.
