Bayo Akomolafe 
Shipments of used vehicles into Nigerian ports have slumped by 35 per cent within two months from 2,150 units in August 2024 to 1,400 units in September.
It was learnt that the Central Bank of Nigeria (CBN)’s customs duty of N1,650/ $1 had discouraged importers from bringing vehicles into the country.
This month, data obtained from the Nigerian Ports Authority (NPA)’s Shipping Position indicated that only 300 units of used vehicles were ferried to Five Stars Logistics at Tincan Island Port by Glovis Champion.
Also, at the Port and Terminal Multi-services Limited (PTML), 1,100 units were ferried by Grande Cameroon with 350 units; Grande Lagos, 400 units and Grande Congo, 350 units.
In August, six vehicles berthed at PTML, Five Stars Logistics and Greenview Development Nigerian Limited (GDNL) with 2,150 units, while 1,600 units of the vehicles were offloaded at PTML from Grande Cotonou with 500 units; Grande Benin, 350 units; Grande Angola, 350 units and Grande Lagos, 400 units, only 350 units were discharged at Five Stars by Grand Aurora and 200 units from Yangtze at GNDL.
Findings revealed that despite the Nigeria Customs Service suspending a 25 per cent penalty on unlawfully imported cars in March 2024, only 18,000 units were imported between January and June 2024 to the nation’s roll-on roll-off terminals at PTML and Five Stars Logistics Limited, in first six months of the year, when compared to 45,000 units of vehicle it received in the first half of 2023.
In 2023, no fewer than 132,293 units were shipped to the country while 194,550 unites was recorded in 2022, leading to a decline in import by 28.3 per cent.
Findings revealed that a total of 326,843 units of used vehicles were shipped into the country between 2022 and 2023, while the cost increased from N325.05 billion in 2022 to N1.063 trillion in 2023, while N138.62 billion was spent to ferry vehicles in the first six months of 2024.
Recalled that data by National Bureau of Statistics (NBS)’s Terms of Trade (ToT) explained that Nigeria’s used vehicles import bill plummeted by 83 per cent to N138.62 billion in the first half of 2024 compared to N819.15 billion in the same period in 2023.
In Q2’24, the imported used vehicles were valued at N138.62 billion, marking an 81.5 per cent decrease compared to N749.92 billion in Q2’23 on a year-on-year basis as data also revealed that a significant portion of the used vehicles were imported from the United States.
Recall that the PTML’s General Manager, Mr Tunde Keshinro, had blamed the imposition of import levies on imported vehicles for the drop in the port, adding that PTML was a foremost roll-on-roll-off terminal in the country handling between 60 per cent and 70 per cent of imported vehicles.
He added that the sudden decline in the volume of used vehicles importation into Nigeria could be traced to high import duty and taxes for used vehicles, imposition of import levy on used vehicles, restriction of rebate on ex-factory prices used for assessment of import duty to 10 years, saying that whereas the law allows importation of 12-year old vehicles.
Also, the National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Emenike Nwokeji, had explained that the incessant fall in the value of Naira and high import duty rates on vehicles had put off importers from the trade.
According to him, “the scarcity and high cost of forex is the lead issue responsible for the drop in vehicle importation. As at today, it is over 1,400/$1. This is the major reason and it is for the same reason that the cost of vehicles have also gone up in Nigeria.
If you buy a car for $1,000 and without paying for any other thing the value here translate to N1.4 million automatically. “So, a small vehicle that people use for Uber that cost about N3 million before, now goes for as much as N5 million.
The Naira had recorded unprecedented depreciation in 2023 with the official exchange rate closing at average N820/ $1 as against N460/$1 the previous year while the parallel market rate closed at N1,090/$1 down from N720/$1 in 2022.”
