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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.
The General Overseer of Firstlove Assembly and renowned preacher, Senior Pastor Simeon Afolabi, has highlighted the significance of thanksgiving, saying it remains one of the best ways to show gratitude to God, and also one of the ways to please God Almighty.
Pastor Afolabi gave the indication as the guest preacher at the annual thanksgiving celebration of Holy Hills Church in Port Harcourt last Saturday.
The 2025 Holy Hills Church annual thanksgiving, tagged, “Thanksgiving of God’s Mercies”, witnessed the gathering of christian faithful to celebrate God’s unwavering love and mercies despite insurmountable challenges.
The General Overseer said the essence of thanking God cannot be over-emphasised, considering the good things He is doing for mankind.
The renowned man of God said one of the ways to please God is not to take His act for granted but to thank Him for everything He has done.
He urged churches to endeavour to make thanksgiving their priority so as to attract more blessings from God.
Pastor Afolabi noted that gratitude is a way of God, hence, “it behooves us to do it every moment of the day,” and opined that the Holy Hills Church was on the right track by recognising God’s mercy and kindness through thanksgiving.
In his remarks, the General Overseer of Holy Hills Church and Chief Host, Pastor Sunny Ikonwa said the aim of the annual thanks- giving celebration was to thank God for His mercy, saying, the annual event which is like Christ Mass to his members could best be described as God’s faithfulness upon their lives.
He said the annuall meeting remains God’s project which the church attaches great importance to and ensures its success every year.
He noted that the church under him will continue to sensitise people and preach to them on the way of peace.
The cleric recalled that the church that started under a palm tree has made tremendous improvement by God’s grace.
Pastor Ikonwa said his mission which is doing what pleases his Maker remains his watchword.
The Holy Hills Church pastor said the mercy of God has been able to sustain his people, saying, the prayer of a Christian goes a long way to rekindle the heart of God, stressing that it is for this singular reason that the church had come in His presence with something measurable to it, as a way of showing appreciation.
According to him, anything big starts small just as his church has done.
He said to the glory of God, today, the church has been growing in His direction.
He, therefore, admonished Christians to have hope and faith in God in the face difficulties, urging the government to always put the interest of the people first, as it has everything it takes to make life meaningful for the citizenry.
Pastor Ikonwa noted that government should be able to implement policies geared towards bettering the lives of the people.
The climax of the programme was the cutting of the thanksgiving cake by the General Overseer and his wife .Various organs of the church also made special presentations to God.
The Nigeria Police Force has indicted the dreaded group, Indigenous People of Biafra (IPOB) over the killing of two police officers, and injuring of one civilian who was rushed to the hospital after sustaining bullet wounds in a coordinated attack in Imo State on June 11, 2024.
The State Police Command, had in a press release accused the Eastern Security Network (ESN), a wing of the Indigenous People of Biafra(IPOB) of being responsible for the killing of the two police officers and injuring of a civilian at Akabo community in Ikeduru Council Area of Imo State.
According to the police, the incident was perpetrated in the early hours of the day by the hoodlums. They attacked one Christian Ama Chukwu in front of his shop at 79, Umudike, Umunnemoche Abazu, Akabo in Ikeduru Local Government Area of Imo State.
Operatives of the Nigeria Police Force, engaged them in a prolonged gun battle and ultimately repelled the attack. Unfortunately, two police personnel lost their lives in the attack. An unnamed civilian was also critically injured in the attack,and he sustained serious injuries in the course of the shootout.
Some residents who spoke with newsmen said the hoodlums were first noticed alighting from their vehicles and harassing residents for not participating in the seat-in or seat-at-home protests. They said the situation got out of control when they opened fire on an approaching police vehicle.
Another eye witness, IfechukwuOpara, said the gunmen then moved around the village in the community,shooting sporadically to aid their escape. “They were driving around the community in a reckless manner while shooting in the air to scare people away before they finally left”, he said.
The Police Public Relations Officer (PPRO), Imo State Police Command, DSP Henry Okoye had confirmed the incident.
He described it as “a senseless, unwarranted and unprovoked act of violence which must not go unsolved.”
According to him, the police would not leave any stone unturned in the quest to arrest and prosecute the criminals.
Subsequently, the Imo State Commissioner of Police, Aboki Danjuma, had mobilised a Police Tactical Squad of the Command to track down the killers, and said, “As I am talking to you now, an intense operation is currently going on in Ikeduru Local Government Area with a view to apprehending the hoodlums responsible for the attack.”
DSP Okoye noted that killings were another painful and stark reminder of the sacrifices police officers make in the commitment to secure the country.
As the Ogoni cleanup programme being implemented by the Hydrocarbon Pollution Remediation Project (HYPREP) continues to record significant milestones across thematic areas, the Federal Government says such gestures further demonstrate President Bola Tinubu’s commitment under the Renewed Hope Agenda to environmental sustainability and ensuring the Project brings benefits to Ogoni people.
The Minister of Environment, Malam Balarabe Abbas Lawal, who made this assertion during the commissioning of the Bane and Gwara water schemes in Khana Local Government Area of Rivers State, in line with HYPREP’s mandate to provide potable water to Ogoniland, said the provision of potable water is a critical step towards improving public health, reducing waterborne diseases and enhancing the overall quality of life.
The latest commissioning brings the water stations to 16, providing access to potable water to 45 Ogoni communities , a development the Minister explains as part of President Tinubu’s commitment to peace ,environmental justice and socio-economic empowerment in Ogoniland, a beacon of hope for communities long affected by environmental degradation.
Lawal noted that the latest commissioning is restoring hope and dignity to the communities long deprived of this essential resource .
‘’The provision of potable water is a critical step towards improving public health, reducing waterborne diseases and enhancing the overall quality of life. It also signifies a renewed commitment to ensuring that the people of Ogoniland reap the full benefits of environmental remediation efforts.We
will continue to ensure that communities in Ogoniland have access to clean, safe and sustainable drinking water. With this initiative, we are not just commissioning infrastructure but restoring hope and dignity to the communities long deprived of this essential resource”, he said.
While commending the Project Coordinator of HYPREP, Prof Nenibarini Zabbey, development partners, stakeholders and traditional rulers, among others for their relentless commitment towards the actualisation of these projects, he urged communities to protect and take ownership of the projects, emphasising that their longevity and effectiveness depend on their collective efforts of maintaining and protecting them for posterity.
In his speech at the event, the Project Coordinator of HYPREP, Prof Nenibarini Zabbey maintained that the Project remains resolute in its resolve to ensure that it completes and delivers all projects initiated within the time frame for the use and benefit of Ogoni people in line with the directives of the Governing Council and under the leadership of the Minister of Environment, Malam Balarabe Abbas Lawal.
To achieve this, Zabbey explained that “We
continue to work closely with community leaders, youth and women, contractors and other stakeholders to ensure solutions are identified and implementation continues smoothly.
‘’We remain guided by the principle of partnership, dialogue, transparency and accountability, knowing that sustainable progress is best achieved through collaboration and mutual understanding. That is the hallmark of HYPREP,” he said.
He appealed to the people to continue to reinforce peace and understanding, using dialogue as a vital tool for resolving disputes, especially around project sites and within communities, noting that the concurrent implementation of over 100 projects across Ogoniland reflects the seriousness and dedication of HYPREP, a momentum that must be sustained through mutual trust and collaboration.
For the Project Coordinator, the event was an ideal opportunity to provide a project status update to Ogoni people, as he excitedly announced the milestone achievements recorded so far to include environmental remediation-94 percent completion in Phase 1 of mangrove restoration; shoreline at 67.1percent; Phase 2 land remediation at 36.55 percent; potable water-14 completed water facilities inaugurated, supplying potable water to 40 Ogoni communities, while the commissioning of the Bane and Gwara water facilities last Saturday increased the number of communities with access to clean and safe water to 45.
Other milestones are the Centre of Excellence for Environmental Restoration (CEER) at 92 percent complete and the processes of operationalising the Centre has begun with the just concluded colloquium, while the Ogoni Power Project is progressing steadily with wayleave compensation and construction works at Bodo and Wiiyaakara substations ongoing. The Ogoni Specialist Hospital is at 76.8 percent with 98.7 percent achieved in the Buan Cottage Hospital. The Ogoni public study being conducted by the World Health Organisation’s (WHO) International Agency for Research on Cancer (IARC); over 7,000 women and youths have benefited from various employment opportunities, while over 5,000 have been trained in multiple skills and provided start-up skits, among other programmes.
Zabbey further hinted of the commencement of some demand-driven skills areas this quarter, which include cybersecurity, full-stack development, mud logging, software development, GIS and commercial diving.
In their separate goodwill messages, the member representing Khana/Gokana Federal Constituency in the House of Representatives, Rt Hon Dumnamene Deekor; Chairman,Great Green Wall, Senator Magnus Ngei Abe; Chairman, Board of Trustees, Ogoni Trust Fund Incorporated, Hon Emmanuel Deeyah; Permanent Secretary, Rivers State Ministry of Water Resources and Rural Development, MrNwizug Gordon; representative of the Managing Director/Chief Executive Officer, Renaissance Africa Energy Company Limited and General Manager, Relations and Sustainable Development, MrIgoWeli; former Secretary to Rivers State Government, Chief Kenneth Kobani; and former Rivers State Commissioner for Environment, Prof Roseline Konya; all commended the Minister of Environment and HYPREP for their commitment to the Ogoni cleanup programme.
Earlier, the Minister and his entourage had paid a courtesy call on Mene Bua Kenwigbara, King D.Y Barile, at his palace, where the former was conferred a chieftaincy title of MeneAnua Le Maa 1 of Ken-Khana Kingdom; and the Project Coordinator of HYPREP as Mene doo Letam 1 of Ken-Khana Kingdom.
Also decorated were the Chairman of Ogoni Trust Fund Incorporated, Hon Emmanuel Deeyah; and the Permanent Secretary, Federal Ministry of Environment, Mahmud Kambari.
Highpoints of the event were the formal commissioning of the Bane and Gwara water facilities by the Minister and the Managing Director/ Chief Executive Officer, Renaissance Africa Energy Company Limited, Engr Tony Attach,represented by MrIgoWeli; the symbolic issuance of education support Items;and the visit to the Ken Saro-Wiwa Memorial Park for symbolic tree planting by the Minister; the Project Coordinator; BoT Chairman; Senator Abe; IgoWeli; Director General, NEASRA, Prof Innocent Barikor; and Zina Wiwa, the daughter of the legendary environmentalist; and the visit to the CEER.
In two years, the Minister of Environment, has visited Ogoniland five times to commission 16 water stations, supplying potable water to 45 Ogoni communities and ensuring that other projects get equal attention, a clear demonstration of his unflinching commitment to the accelerated implementation of the Ogoni cleanup programme in line with Priority 3, Deliverable 3 of President Bola Ahmed Tinubu’s Renewed Hope Agenda and driven under the visionary and passionate leadership of Prof NenibariniZabbey as Project Coordinator.
By: Donatus Ebi