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Nigeria Loses 50% Duties On Imported Vehicles
For five consecutive years, the Federal Government of Nigeria has lost half of its revenue accruing from duties paid on imported vehicles as 50 per cent of vehicles come in illegally.
These vehicles come through the closed borders and seaports without payment of duties to the government treasury, an investigation by the Nigeria Auto Journalists Association (NAJA) has revealed.
The economic sabotage, which gained traction in the first quarter of 2016, when the land borders were closed by President Muhammadu Buhari-led Federal Government is perpetrated by either influential people/dealers who hand out signed documents to the Customs or bribe their way to clear the vehicles without due process.
In connivance with unscrupulous government officials, some dealers are treated as sacred cows and they are quick to get away with anything at the ports.
It was learnt that the illegal business does not stop at seaports alone; similar dealings have been reported in major land borders across the country, including Kpobe (Ogun State), Ijowu (Ogun State), Seme (Lagos State), Idiroko (Ogun State), Shaki (Oyo State), Daura (Katsina State), Baga (Borno State), etc.
It would be recalled that the Nigeria Customs Service (NCS) had September, 2019, raided some top car marts in Lagos.
The comptroller general’s Strike Force and officers attached to the Federal Operations Unit (FOU), Zone ‘A’, Ikeja stormed Berger along Apapa-Oshodi Express Road and other premises across the state.
Many of them were closed on the orders of the CG Service, Col. Hameed Ali (rtd), for allegedly retailing smuggled vehicles in the shops.
Major car dealers including Affordable Cars Limited, Carlink Limited, Ineh Mic Autos, Globe, Coscharis, Skymit, Arrowhead Motors, Wonder Wheels, Auto Point, among others, were raided. Showrooms in other states, including, Sokoto, Katsina were equally affected.
The second-hand vehicles dealers were not spared as most of their showrooms were equally closed too due to reasons that have to do with documentation.
Commenting, the Executive Secretary, Nigeria Automotive Manufacturers Association (NAMA), Remi Olaofe, said, “you can’t say there is no smuggling in Nigeria; our borders are porous and we have done everything we needed to do to improve it, by shutting down the borders, but they are still porous.
Olaofe said it is a fallacy to say for every vehicle coming into the country, appropriate duties are being paid.
Stating that NAMA has proffered solution to the menace, Olaofe said that with their portal and that of the National Automotive Design and Development Council (NADDC, it will be 100 per cent impossible for anybody to import a vehicle and not properly register in Nigeria because the portal will indicate that the appropriate amount of money is not paid.
“It is just as simple as that, but for the reason best known to the operators and the players in that market, they have refused to allow that portal to work”, he said.
Advising that vehicles must be registered for them to be driven on the road, Olaofe added that “You can’t be driving a vehicle that is not registered. To know this, they should go to the licensing office because the licensing office cannot license a vehicle without first clarifying from the portal and that clears the vehicle. If that is not there, we have what is called the BIN number, will throw up a red flag”.
Explaining further, Olaofe said, “I don’t represent the (FBU) Fully-Built Vehicle, mine advocacy is for us to shut our doors against the FBUs. Assembling of vehicles in Nigeria is what I represent”.
Confirming that the duty waiver for vehicles has been adjusted, but there is no difference in the rate of vehicles, the executive secretary said, “We are saying that it is not a duty that is affecting the rate we are paying as transportation fare.
“But the factors are the cost of fuel, infrastructure, security on the road, wear and tear, replacement of these spare parts and the conditions of the vehicles. They bring a lot of junks into this country.
“Africa Bilateral Free Trade Agreement has taken off, where is Nigeria in the scheme of things? Assembly plants are now moved to Ghana, what do we stand to benefit from?
“Toyota, Hyundai and co are being assembled in Ghana, are those for Ghana economy? They are for Nigeria economy”, Olaofe added.
The Deputy Managing Director, Massilia Motors, dealers of Mitsubishi brand of vehicles, Kunle Jaiyesimi, said most car dealers, including Massilia Motors, are still selling their old stock and that his company had stocked up to December for the 2021 business.
According to him, the car market has really shrunk and that dealers have not really made major decisions in 2021 in terms of vehicle imports.
Jaiyesimi said “to the assemblers, they are not happy with the Finance Act; it’s making the locally assembled vehicles uncompetitive compared to the Fully Built Units. For instance, Fuso and Canter (Mitsubishi) that we are assembling, it is cheaper to bring them in as FBU than locally assembling them. And that has affected our production lines.
Jaiyesimi, who is also the chairman, Auto Group of the LCCI proffered solutions, saying that “the only way for us have some gain on the assembly line is for govt to remove the import duty or reduce it. If they cannot remove it, they can bring it down to five per cent”.
The DMD said that, for now, they are charging 40 per cent (35 per cent import duty and five per cent for levy) on passenger cars for FBU; 10 per cent on (Semi Knocked Down (SKD) and 10 per cent on FBU buses.
He argued that whatever duty reduction the government has put in place for them to enjoy is being wiped off by the exchange rate fluctuations, stressing that the CBN is not supporting vehicle importers at SKD or FBU level.
Rather, he informed that stakeholders rely on the black market to pay their suppliers.
“Once you are getting your FX from the black market, whatever gain that is coming from the import duty reduction is lost in the over 25 per cent increase in the FX rate”, Jaiyesimi added.
Further investigations, however, show that both new vehicle dealers and second-hand vehicles merchants are deeply involved in this business of short-changing the government.
A key member of the United Bergers Motor Dealers’ Association (UBMDA), Chike Ejogu, said that dealers evade Apapa ports because of the high duties paid to clear the vehicles there.
According to him, that is the major reason why dealers resort to smuggling in vehicles at cheap rates, to make big gains.
Ejiogu said, “the whole thing worsened in early 2016 when the land borders were closed. Before the closure we used to pay N74, 000 and N96, 000 for small cars while we were paying about N170, 0003 for big vehicles like SUVs”.
Ejiogu revealed that about 5,000 vehicles are smuggled through the Idiroko land border every month.
The Chairman, Allen B Motors Nig Limited, Lawal Azeez, said that car smuggling has caused the government a fortune.
According to the auto dealer, a reduction of duties paid to the government will help to discourage smugglers from their illegal operation.
Meanwhile, efforts made to get statistics of imported vehicles from various auto companies proved abortive.
Figures from Kia were not available as of the time of filing this report.
Although, Coscharis was also approached for the statistics the auto firm is yet to respond as of the time of filing this report.
The story is basically the same at West Star Associates Nigeria Limited, the sole distributor of Mercedes-Benz vehicles in Nigeria.
While different regions of the world make available sales statistics regularly, Mercedes-Benz representatives in Nigeria always turn down a request for sales statistics.
When contacted, a source promised to make necessary contacts within the company and get back to.
The source did not get back as at press time.
However, for the first quarter of 2021, despite the challenges associated with Covid-19, Mercedes-Benz Cars sold 590,999 passenger cars across the world driven by China and United States retail sales as well as strong demand for plug-in hybrids and all-electric vehicles
One of the implications of vehicle smuggling or duty evasion, is that the vehicles of these illegal auto dealers are sold easily at cheap prices because they never pay the right duty to get them into the country.
Consequently, the genuine dealers are left to suffer the outcome as they cannot sell vehicles lower than the actual cost of bringing them to the showrooms.
News
RSG Moves To Diversify Rivers Economy …As Farmers, Others Laud Ibas Over Implementation Of RAAMP
The Rivers State Government has restated its readiness to diversify the economy of the state from oil to Agriculture.
This is as farmers and other stakeholders have commended the Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ibas (Retd) for approving the implementation of Rural Access and Agricultural Marketing project (RAAMP) in the state.
Permanent Secretary, Rivers State Ministry of Agriculture, Mr Maurice Ogolo, said this during a meeting on implementation of RAAMP in Ikwerre, Eleme and Ogba Egbema Ndoni Local Government Areas.
Ogolo said the programme would create an agricultural industrial hub in the 23 local government areas, and urged the people to embrace the project.
Meanwhile, rural farmers and other stakeholders in the State have lauded Ibas for approving the implementation of RAAMP in the State.
RAAMP is a world bank program with support from the International Development Association ( IDA), the French Development Agency and the Federal Government of Nigeria.
According to a statement made available to newsmen, the programme aims to strengthen the institutional and financial base for sustainable management of state and rural networks, fostering historic development to enhance food security, creating access in rural communities to boost agricultural processes through creation of durable access roads and agro logistics centres/hub.
Tide source confirms that the program has been in operation since 2020 with 19 states benefitting.
The benefitting states are Kano, Katsina, Sokoto, Kebbi and Bauchi.
Other beneficiaries are Plateau, Kwarra, Ondo, Niger, Gombe, Anambra, Cross River, Taraba and Benue states.
The source said that 12 new states including Rivers State recently completed their requirements for inclusion into the RAAMP 3.
Speaking at the stakeholders’ meeting at Isiokpo, Nchia and Omoku, headquarters of Ikwerre, Eleme and Ogba/Egbema/Ndoni local government areas respectively, a cross section of farmers described the programme as timely as it would boost food production as well as create markets for agricultural produce.
At Eleme, HRH Emere J D Nkpe warned against politicising the project.
The people also complained against incessant destruction of crops by herdsmen and called for it to be checked.
Also speaking at Omoku headquarters of Ogba Egbema Ndoni Local Government Area,Eze Allison Dan and Barrister Lola Nwaribe commendation the government for the program but warned against it going the way of other programmes.
For Barrister Nwaribe Women in the area needs assistance to break free from subsistence agriculture
Speaking at the three ocal government areas Ogolo said Rear Admiral Ibok Ete Ibas rtd needs to be commended for approving the implementation of the program in the state.
Ogolo said the program is aims at diversifying Rivers economy from oil to Agriculture.
He said the program will also enable farmers to move from subsistence farming to commercial agriculture, adding that access roads will not only be created to farms but markets will be built for farmers to sell their produce.
He listed other benefits to include creation of employment for the youths and helping small traders to boost sales.
Also speaking the state RAAMP Coordinator,Mr Joshua Kpakol said the “the essence of this project is to provide rural access roads and improve agricultural marketing systems across the 23 Local Government Areas of the state”
Kpakol said the project is divided into three components which are improvement of Rural Access and Trading Infrastructure, Sector Reform,Asset management and Agro logistics performance Enhancement and Institutional Development, Project Management and Risk Mitigation.
He urged farmers and traders to embrace the project as it would go along way in changing their fortunes.
At Ikwerre and Eleme local government areas respectively, the sole administrators of the two councils Hon Isaiah Christian and Dr Gloria Obo Dibiah said the councils will work towards the success of the program.
They commended President Bola Ahmed Tinubu and the Sole Administrator of Rivers state for ensuring that their respective councils benefits from the programme.
John Bibor
The FCT High Court in Abuja, yesterday, granted the suspended Senator representing Kogi Central Senatorial District, Natasha Akpoti-Uduaghan, bail in the sum of N50 million and one surety who must be a person of reasonable integrity resident in F.C.T Abuja and owns a landed property within the Abuja Municipal Area Council.
The trial judge, Justice Chizoba Orji, made the declaration in a ruling after taking arguments for and against the bail application from the parties in the suit.
The Attorney General of the Federation, in a three-count criminal charge marked CR/297/25, accused Akpoti-Uduaghan, the sole defendant, of making defamatory statements against the Senate President, Godswill Akpabio, during a live television broadcast.
The charge, which lists Akpabio and the former Kogi State Governor, Yahaya Bello, as nominal complainants, alleged that Akpoti-Uduaghan claimed Bello had conspired with Akpabio to orchestrate her assassination outside Abuja, disguising it as a mob or local attack.
According to the Federal Government, these allegations were made during a live broadcast on Channels Television’s Politics Today on April 3, 2025.
The Federal Government claimed that Akpoti-Uduaghan knowingly or recklessly made these imputations, fully aware that they could harm the reputation of the individuals involved.
The charge alleged that she said, “Let’s ask the Senate President, why in the first instance did he withdraw my security, if not to make me vulnerable to attacks? He then emphasised that I should be killed, but I should be killed in Kogi. What is important to me is to stay alive, because dead men tell no tales. Who is going to get justice for me?”
The charge also cites her statements during the programme as saying, “That you, Senator Natasha Akpoti-Uduaghan, on or about the 3rd day of April 2025, during the same Politics Today programme on Channels Television in Abuja, Federal Capital Territory, made the following imputation concerning Yahaya Adoza Bello, former Governor of Kogi State.
“It was part of the meeting, the discussions that Akpabio had with Yahaya Bello that night, to eliminate me. When he met with him, he then emphasised that I should be killed, but I should be killed in Kogi. You knew or had reason to believe that such imputations would harm the reputation of Yahaya Adoza Bello, former Governor of Kogi State.”
The senator is also accused of making defamatory statements about Akpabio during a telephone conversation with Sandra C. Duru in Abuja on March 27, 2025.
The alleged statement is as follows, “That girl that was killed, what’s her name, umm…. Imoren Iniubong, her organs were actually used for the wife, because the wife was really ill… when they killed the girl, and her organs were used for the wife.”
The Federal Government contends that Senator Akpoti-Uduaghan knew or ought to have known that this claim would harm the reputation of Senator Godswill Akpabio.
Meanwhile, the Senate President, Bello, and four others have been listed as witnesses in the trial.
The arraignment of Akpoti-Uduaghan was initially scheduled for June 3, 2025. However, the strike action of the Judiciary Staff Union of Nigeria stalled the arraignment.
Meanwhile, a similar matter is also lodged before Justice Muhammed Umar, of the Federal High Court in Abuja.
While Senator Akpoti-Uduaghan was slated for arraignment before Justice Umar, she, however, did not appear for the arraignment since the prosecution had not been able to serve her as stated in court.
The prosecution, however, applied for a bench warrant to be issued on the suspended senator, which the court refused.
At the commencement of the hearing, the counsel to the Attorney General of the Federation, David Kaswe, told the Court that the matter is for arraignment of the defendant (Senator Akpoti-Uduaghan).
Natasha was docked, and the three-count read to her. She pleaded not guilty to all the charges.
Akpoti-Uduaghan’s legal team, led by Professor Roland Otaru (SAN), afterwards informed the Court that a bail application filed on May 27 has been submitted to the court.
Kaswe, however, informed the court that the Federal Government is opposing the bail application and called the attention of the judge to a counter-affidavit filed before the court to this effect.
He proceeded to ask the court to remand the Kogi Senator in prison as she poses a flight risk.
He said, “In view of the charge, we will be asking for a remand in a correctional facility.
The defence counsel, however, interjected, stating, “We already filed an application for bail. We are in a court of law for Justice. We have a motion on Notice dated May 27, 2025. You represent the Ministry of Justice, not the Ministry of Injustice.
“If your lordship graciously will, we urge your lordship to grant the bail application. This is a case where your lordship has the discretion to grant bail, and nobody can query it, not even the president can query it. Even on self-recognition because it is not a case of murder.”
Referencing the Administration of Criminal Justice Act, Otaru added that anybody who is charged with a criminal offence shall be presumed innocent until proven guilty. “And she pleaded not guilty. As she is standing there, she is innocent until proven otherwise,” he added.
Justice Chizoba Orji, after listening to both arguments, however, granted Natasha bail in the sum of N50 million, with one surety who must be a person of reasonable integrity resident in F.C.T Abuja and owns a landed property within the Abuja Municipal Area Council.
Oba of Benin, Ewuare II, has received 119 stolen artefacts from the Netherlands.
The Oba who disclosed this on Wednesday in Benin, the Edo State capital, said plans by some international cartel to re-loot the artefacts were thwarted after he prayed to God and the ancestors.
He said, “I thank President Bola Tinubu for supporting and committing to the efforts former President Buhari put in place to ensure the artifacts are not re-looted because there were groups in this country believed to be an international cartel that had all sorts of conspiracy to re-loot our artifacts.
“They stole and burnt our Kingdom. They killed my people and tried to kill their spirit and their morale. Today, the boldness, courage, and bravery of the Benin people are still there. Events of 1897 reduced that to a significant level that Sometimes when I see my people, they are afraid of the unknown.
“The return of these objects has reawakened the courage we had in our people. We do not want modern-day politics and partisan politics to diminish the courage of our people.
“The Director General of the National Commission for Museums and Monuments has been doing wonderful work. His predecessor was part of the conspiracy to re-loot our artefacts. We had a running battle in this hall.
“I addressed my Chiefs in Benin language, and I said these artefacts belong to my ancestors, and I will not sit on the ancient throne and watch the artefacts re-looted. They would rather remain where they are than be re-looted. I thank the government of the Netherlands for working with us. This is part of the efforts to reawaken the morale and spirit of my people.
“After 1897, the kingdom was reduced. There was a government in this state that wanted to reduce the kingdom more and scatter it. I am angry when I speak about it. Why would anybody want to scatter the kingdom.
“The youths were courageous like the youths of those days. They were not afraid of anybody. I vowed that it would not happen. Not in my reign. Not while I am sitting on this throne. God heard my prayers. My ancestors heard my prayers. This throne is not partisan, but I should support what is good for my people.
“I urge the youths to be tough and strong in the face of adversity. This is not for anybody else. It is for my ancestors.”
The Benin Monarch further prayed for the return of more artefacts.
The NCMM DG, Olugbile Holloway, said the commission and the Benin Royal Palace were working hard to ensure more artefacts were returned.
Edo State Governor, Monday Okpebholo, who was represented by the Secretary to State Government, Barr. Musa Ikhilor said his administration would continue to build necessary infrastructure to preserve the returned artefacts as well as collaborate with the Federal Government to improve the storage system for the artefacts.
The General Director of the Wereld Museum, Marieke Van Bommel, said, “The artefacts are looted, and we have a policy in the Netherlands to bring them back. We are bringing back 119 artefacts. We don’t have more. These are the collections in the Netherlands. There are more collections in Europe, but that is not up to us. They have been with us for over 100 years.”