Worries for importers of used cars as FG moves to clamp down on their activities

• A large manufacture shakeup is astir to deed the automobile manufacture successful Nigeria arsenic the authorities moves against utilized car imports
• The Director General of the National Automotive Design and Development Council (NADDC), has explained the strategies
• The authorities besides has a lineup of plans to promote the section accumulation and assembling of cars successful Nigeria

Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

An manufacture shakeup is underway, arsenic the national authorities has unveiled caller strategies to clamp down connected unregulated importation of utilized cars.

The regulators successful this industry will, with 1 move, clamp down connected the activities of amerciable importers, and besides promote section production.

Speaking successful a gathering successful Lagos, the Director General of the National Automotive Design and Development Council (NADDC), Mr. Joseph Osanipin announced that the regulator would beryllium enforcing stricter dealership regulations.

The automobile importation assemblage volition present look stricter regulatory scrutiny Photo Credit: Picture alliance
Source: Getty Images

FG to halt unauthorized importation of utilized cars

Osanipin stated that Executive Order 005 mandates ministries and agencies to promote and adjacent prioritise patronage of locally produced products implicit imports, Leadership quality reports.

He noted that by stricter rules connected dealers, the regulator would support Nigeria from becoming a dumping crushed for substandard and high-emission products that compromise the maturation of section industry.

This, helium said, would guarantee biology sustainability, and turn section manufacture to presumption Nigeria arsenic a notable subordinate successful the automobile accumulation industry.

Motor dealers respond to caller move

The Association of Motor Dealers of Nigeria (AMDON) President, Prince Ajibola Adedoyin, who was besides contiguous astatine the gathering commended the government’s move.

Adedoyin, however, noted that affordability is simply a cardinal situation successful the manufacture arsenic Nigerians are struggling with debased purchasing power, and imported utilized cars are often the astir affordable.

He called connected the authorities to collaborate with and enactment the Nigerian Automotive Manufacturers Association (NAMA) to marque locally assembled cars arsenic affordable for the mean Nigerian.

Adedoyin noted that Nigerian consumers often look retired for affordability, a metric that imported utilized cars meet. Photo credit: Picture alliance
Source: Getty Images

Adedoyin promised that the Motor Dealers would enactment intimately with the regulators to enforce compliance, and requested the entrenchment of clearer processes successful the dealership registration system.

Recall that importers of utilized cars continually person to set the prices of their products to bespeak the alteration successful FX rates and expanding charges and duties from the Nigeria Customs Service.

In February 2024, the FX rates for clearing imported cars changed six times owed to the naira devaluation.

This has further led to a clang successful the income of imported utilized cars, besides referred to arsenic Tokunbo cars.

A car trader who spoke to Legit.ng, Mr. Ifeanyi Knorac, disclosed that car income had declined due to the fact that of the driblet successful purchasing power, and affording the locally assembled cars could beryllium adjacent much burdensome.

"The government's determination is to halt Nigeria from becoming a dumping tract for each kinds of mishap vehicles, but the existent contented is however galore Nigerians tin spend it. These locally assembled vehicles commencement from N15 cardinal oregon thereabouts, and with the existent economical realities, not galore Nigerians tin spend that. A mean civilian servant cannot adjacent spend it. "For this to work, the prices of the locally assembled vehicles conscionable person to crash. If that doesn't happen, past radical volition support going down the scenes to import and merchantability these cars"

FG to modulate merchantability of utilized cars

In related news, the national authorities moved to regulate car importation and dealers operating successful the country.

The authorities said the determination was to curb the influx of accident-prone and condemned vehicles entering Nigeria done smuggling routes, and sold astatine exorbitant prices.

Motor dealers nether the aegis of AMDON welcomed the move, noting that unregulated imports by individuals posed risks to consumers and the industry’s reputation, arsenic buyers hardly differentiate unregulated individuals from registered dealers.

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Source: Legit.ng