Forex: Dealers Halt Tokunbo Vehicles Import, Trade In Nigerian Used

Due to the increase in Naira against the United States dollar that has led to increase in Customs duty and other related taxes at the nation’s seaports, importers of fairly used vehicles also known as Tokunbo have lamented inability to import vehicles into the country.

LEADERSHIP reports that importers of This is even as they now result in recycling of old cars (Nigerian used).

Speaking to journalists, the President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, said hike in taxes, Premium Motor Spirit (PMS) also known as petrol and tariffs have slowed down vehicle import business.

According to him, the naira floatation and the fuel subsidy policies of the federal government have adversely affected importation of vehicles into the Nigerian ports.

Adedoyin stated that the situation has driven a lot of importers out of business, saying the consequences are so much on their members.

“The further consequences on the populace, which at the end of the day, might have serious safety issue because most of what is happening now is recycling of old cars that is used in Nigerian car.

“Importers can no longer bring in fairly used cars due to high foreign exchange rate. Apart from exchange rate, increase in import duty, which we have made it clear to government to do something about it. The hikes have adverse effects on our members because it has chased 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 of Importation and that is why some people left the business. Government needs to take urgent steps to address the situation,” Adedoyin said.

He, however, warned that should the government fail to do something about it, the increase in exchange rate, transportation and Safety of people will be threatened.

“You know, like I always say, the simple meaning of economy is the movement of goods and 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.

“Increasing the FX rate has put pressure on import duty and that has made it astronomical. Also, we have told the government to do something about it else, the effects on them will be catastrophic.”

He further revealed that since vehicle Importation has dropped drastically, importers now resort to recycling of old and used vehicles.

Adedoyin, however, warned that with recycling of old vehicles accidents will be consistent as well as breakdown of the vehicles.