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The Federal Government on Monday announced banned the importation of vehicles into the country through the land borders.
The National Public Relations Officer of the Customs Service, Mr. Wale Adeniyi, confirmed the development in a statement. He said that the ban covered both new and used vehicles.
While stating that the ban was sequel to Presidential directive restricting all vehicle import to Nigerian seaports only, the Customs spokesman disclosed that the ban was to take effect from January 1, 2017.
He therefore requested importers of vehicles through the land borders to make effective use of the grace period of up till December 31 to clear their vehicle import landed in the neighbouring ports.
According to Adeniyi, “Importation of vehicles into Nigeria through the land borders has been banned by the Federal Government. The prohibition order covers all new and used vehicles.
“The ban is sequel to a Presidential Directive restricting all vehicle imports to Nigeria Sea Ports only. The order takes effect from 1st January 2017.
“The restriction on importation of vehicles follows that of rice, whose imports have been banned through the land borders since April 2016.
“Importers of vehicles through the land borders are requested to utilize the grace period up till 31st December 2016 to clear their vehicle imports landed in neighbouring ports”.
Meanwhile, the policy is eliciting some mixed reactions barely 24 hours after it was announced.
While some view the policy as not well thought out, others laud it as one that will increase patronage and expand opportunities for Nigerians through the nation’s underutilized ports.
Seaports Terminal Operators Association of Nigeria (STOAN) has lauded the new policy, while a section of importers, licensed customs agents and freight forwarders frown at the policy.
STOAN Chairman, Princess Vicky Haastrup, while reacting to the ban on Monday said that the move, if well implemented by the Nigeria Customs Service, will reduce the smuggling of vehicles into Nigeria and revive the operations of Roll-On-Roll-Off (RORO) terminals in the country.
RORO terminals are specialised port terminals that handle all types of vehicles.
Haastrup asked the government to take a step further by scrapping the high import duty regime imposed on vehicles by the administration of former President Goodluck Jonathan in 2013.
Haastrup said: “We are confident of the ability of President Muhammadu Buhari to turn the economy around. The earlier ban on importation of rice, and now of vehicles, through the land borders is a welcome development.
Prince Olayiwola Shittu, the national president of Association of Nigeria Licensed Customs Agents (ANLCA) said that the policy would give room for car smuggling to thrive.
According to him, the stakes will increase for those wishing to bring in vehicles through the land borders and their desperation will be spurred by the reality that they will not pay anything to government if they succeed in bringing such cars in.
Shittu advised government to urgently review its auto policy and halt a situation where some persons pay 70% duty rate while others pay 20% for the same class of vehicle imports.
Shittu further called for fairness and equal treatment for all involved in the business of shipping cars into Nigeria.
Chief Eddy Akwaeze, an importer operating at the borders, described the policy as one capable of increasing unemployment in the country.
He said, “A lot of young graduates at the border communities are now involved in legitimate car importation for which they pay duty to Customs and contribute to our national GDP. With this policy, they will be jobless now.”
Customs officials at Seme Border, according to Akwaeze, have been meeting and surpassing their monthly target through revenue collected from car importation after rice was banned.
Akwaeze also faulted the policy over what he described as wrong timing. He said that the government ought to have given 90 days notice for its implementation.
According to him, many Nigeria-bound vehicles that are yet to arrive Cotonou ports will be caught up by the policy.
“Since 1996 when I got involved in the industry, government always gives 90 days notice for implementation of any new policy.”
For Eugene Nweke, an ace freight forwarder and former President of National Association of Government Approved Freight Forwarders (NAGAFF), Nigerian ports are not competitive enough.
He alleged that Nigerian ports are made unattractive by high charges, high handedness, extortion and other unofficial means of corruption.
“Cargoes shipped from China to Cotonou pay far less than what is paid if they come to Nigerian ports. Cumulatively, they pay up to 19,000 euros including NIMASA and NPA charges if they come to Nigeria. In Cotonou (Benin Republic) they pay 2000 euros, Togo 1000 euros while in Ghana they pay a little above 3000 euros.
“Nigerian ports are exorbitant compared with ports of neighbouring countries. This area should be addressed. The difference in ocean freight is not competitive,” Nweke added.
The Public Relations Officer of the Nigeria Customs Service, NCS, Mr. Wale Adeniyi, stated that the ban was a presidential directive.
He added that all vehicles coming into the country should henceforth come through the seaports only even as he added that the directive takes effect. From January 1, 2017.
He added that the ban covered both new and used vehicles.
However, importers of vehicles through land border were given the grace period of 26 days to clear their vehicles still hanging in neighbouring countries within the period.
The grace to clear outstanding vehicles lapses on December 31, 2016.
