A Nigerian car dealer has called his business associates on social media to confirm current prices before making customer quote estimates.
In a post shared on his social media page, the dealer stated:
“New custom duty for clearing goods now!!!
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20ft. 6,500,000
40ft. 10,500,000
Biko confirm my new prices before giving your customers quote because E dey red every where now!!”
The outcry is coming only shortly after Business Day announced that the Nigerian Government is set to reduce the custom tariff on car importation by a whopping 42%.
Many car dealers the publication contacted noted that the customs duty reduction will be a good development and aid more Nigerians to easily afford decent used vehicles without settling for accident vehicles.
Speaking to the publication on the matter, Tony Anakebe, managing director of Gold-Link Investment Limited, noted: “This would be good for low-income Nigerians who may be able to afford imported ‘Tokunbo’ cars rather than depend on Nigerian used cars. It will help grow the nation’s automobile industry and may increase the importation of new cars into the country.”
Another car dealer, Chukwu Emmanuel, a dealer at Berger Car Mart in Lagos, told Business Day that it is cheaper to import accident cars, and the duty payable on them is also small because it comes with a rebate. He said that car dealers in Nigeria bring in accident vehicles and repair them before putting up the cars for sale.
Business Day also conducted research that realized that 70% of cars imported into Nigeria are accident cars as they are cheaper on the part of importers and also cheaper for citizens.
The publication noted that the government’s move to reduce customs tariffs on imported cars will reduce the cost of buying cars in Nigeria, benefiting citizens. However, the tariff reduction plan is yet to be activated. The Nigerian Customs says it’s yet to receive authorization from the Federal Ministry of Finance, its supervisory ministry, giving the Service the ‘go ahead’ to begin implementation.
The ripple effect of it is that car importers in Nigeria will continue clearing cars using the above price of 20ft N6.5 million and 40ft. N10.5 million will equally impact the prices of cars until the new tariff reduction plan takes effect.
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