New Telegraph

Surcharge: Vehicle Import To Nigeria Drops By 71% In 2 Weeks

Import Adjustment Tax (IAT) has led to a massive drop in vehicle importation into Nigeria. Findings revealed that the levy had resulted to a 71 per cent drop from 1,960 units in December 2024 to 586 units within the first two week in January 2025.

The new tax regime stipulates that only imported vehicles between 2,000 capacity (two litres) and 3,999 capacity (3.9 litres) engine would pay an additional charge known IAT levy, while vehicles with 4,000 capacity (four litres) and above engines would attract IAT of four per cent of their value.

Data obtained from Nigerian Ports Authority (NPA)’s Shipping Position indicated only three rollon roll- off vessels berthed at the Port and Terminal Multi-services Limited (PTML) and Five Stars Logistics terminals at Tincan Island Port last week with the vehicles.

Of the total imports, 136 unit are are new vehicles, while 450 are used vehicles shipped from Europe, Asia and united States.

Five Star Logistics took delivery 136 units of the new vehicles Southern Highway and 100 units from Piranha, while PTML received 350 units from Grande Congo.

Last month, the shipping data indicated that 460 units of new vehicles were offloaded at Five Stars from Sunrise Ace, while Glovis Spirit brought 350 units of used vehicles.

Also, at PTML, Repubblica Del Brasile discharged 350 units, while Grande Argentina and Grande Cotonou offloaded 400 units each.

In November, 1,470 units were imported, through the Five Stars Logistics terminals as 1,200 units cleared at PTML from Great Lagos laden 500 units; Grande Luanda, 400 units and Grande Angola, 300 units.

Also in October, only 300 units of used vehicles were ferried to Five Stars Logistics by Glovis Champion. Also at PTML, 1,100 units were ferried by Grande Cameroon with 350 units; Grande Lagos, 400 units and Grande Congo, 350 units in September 2024.

Meanwhile, the General Manager of PTML, Mr Tunde Keshinro had explained that the unprecedented decline in the volume of used vehicles importation into Nigeria could be located around 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 whereas the law allows importation of 12-year old vehicles.

He noted: “Vehicles above 10 years of age are forced to pay higher import duties, and high exchange rates resulting in excessive-high landing costs above the affordable level for the majority of Nigerians, who depend on private vehicles for private and commercial transportation.”

Recall that Spiro, an electric mobility company operating in seven African countries, has decided to launch its first Electric Vehicle (EV) assembly plant in Ogun State, Nigeria in March 2025.

It was learnt that the move would reduce reliance on imported vehicles and batteries, primarily from China, while becoming a key player in West Africa’s electric vehicle market.

Also, it was learnt that the plant would ramp up production to 100,000 bikes in the first quarter of 2025, including local manufacturing of three-wheelers and batteries.

Also the company said that it would increase its production from the current 1,000 units in 2024, adding that the new facility would expand the company’s entry into the three-wheeler segment.

This month, the company will start testing three-wheelers across various Nigerian states. The vehicles are expected to have a range of 100 km on a single charge.

The compnay’s expansion is backed by strong government support, with partnerships in Uganda and Kenya aiming to deploy 140,000 and 1.2 million EVs, respectively.

The company has already deployed 22,000 electric motorbikes across sub-Saharan Africa, and its growth plans include entering Tanzania, Ghana and Cameroon, with further expansion into DRC and Angola by 2025.

With over $143 million in funding, Spiro has invested heavily in scaling its operations and will require an additional $100 million for further expansion.

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