Nigeria has recorded a significant drop in the number of imported tokunbo vehicles into the country through the Ports & Terminal Multipurpose Limited.
A document obtained from the Customs Public Relations Officer in charge of the PTML terminal, Muhammad Yakubu, revealed that the drop in imported tokunbo vehicles into Nigeria through the terminal, which serves as an entry channel for most used vehicles, was about 40%, between January and October when compared to the first 10 months of 2021.
It is pertinent to note that while a total of 192,287 units of vehicles came into Nigeria in the first 10 months of 2021, only 114,159 units were imported through the same terminal in the same period in 2022.
Clearing agents debate drop in import tokunbo vehicles
Clearing agents operating at the nation’s maritime industry have blamed inconsistent government policies and the newly introduced Vehicles Identification Number for clearing of imported vehicles as reasons behind the decrease.
The PTML chapter Chairman of the National Association of Government Approved Freight Forwarders (NAGAFF), Thomas Alor, also blamed the levy imposed on imported cars by the government for the decline, adding that the VIN was not giving them the value they paid for.
He said, “The levy, which they imposed on imported used cars, is what is affecting car importation. What is causing the drop in the importation of vehicles is the value in clearance. The VIN valuation is not giving us the value, which we are paying now.
“What made the value high is because of the levy imposed on older vehicles; it is the reason for the high cost of clearance of those vehicles. When we started the VIN valuation, we were paying normal duty with the percentage of the duty until the government now imposed levies on old vehicles, which now increased the prices.”
Though he admitted that the levy had been there before now, Alor, however, said it was not up to five percent as against the 15 percent the clearing agents were now being asked to pay.
He stated, “The levy has been there but it was below five percent, but now, it is about 15 percent. Any time we engage Customs on the issue of value, they tell us that we requested the VIN. And we are saying yes, we requested the VIN, but the VIN was not well articulated the way we asked them to do it; they later imposed levies on it and the high levy is bringing the value up.
“Now, some vessels come with only 45 vehicles; some even come with less than that. The only time that they recorded a huge import of vehicles here was like two or three vessels that came with damaged vehicles. Following the introduction of the VIN and levy, vehicle importation has dropped drastically. There are times here at the PTML when nothing is happening and people just play around here. Some vehicles come through other terminals as containerised cargoes.”
