Due to scarcity of foreign exchange (FX) hike in tariffs, increase in import duty and other related taxes, automobile dealers have lamented their inability to import fairly used cars into the country.
This is even as they have now resorted to the recycling of Nigerian used cars while others have abandoned the automobile business entirely.
Speaking with Daily Sun, the President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, said the hike in taxes, fuel and tariffs have affected importation of cars into Nigeria.…CONTINUE READING
According to him, the situation has driven a lot of importers out of the business.
“The implication of this is that there would be safety related issues because most of what is happening now is recycling of Nigerian used cars.
“Importers can no longer bring in cars due to high foreign exchange rate. Apart from exchange rate, there is the increase in import duty, which we have made clear to the government is affecting us negatively and have asked that something be done about it. The hike has had adverse effects on our members because it has chased away some of them away from the business.
“Even when you buy a car and sell it at a profit, you cannot buy another one with the current price we use to import and that is why some people have abandoned the business. The government needs to take urgent steps to address the situation,” he said.
He said if the government fails to do something about it, apart from the transportation that will be badly affected, the safety of Nigerians and the economy will be affected.
“The economy is all about the movement of goods, services and people from one place to another. That is what forms the economy. So, anything that affects transportation affects the economy of the country,” he said.
He warned that the consequences of recycling old Nigerian used vehicles is the possibilty of increase in tehe rate of accidents because they will suffer from wear and tear, causing them to breakdown.
