Customs
Nigeria records N177.2 billion drop in vehicle importation to VIN valuation implementation in 6 months
The Federal Government may have lost a whopping sum of N 1772.2 billion in revenue in the first half of the year to the implementation of the Vehicles Identification Number (VIN) valuation policy of the Nigeria Customs Service.
In comparison, during the same period of 2021, N174.2 billion worth of used cars were imported in Q1 and N172 billion in Q2.
Analysts claimed that the drop might not be unconnected with the introduction of the VIN policy by Customs for proper valuation of imported used vehicles.
Importers had challenged the Nigerian Customs Service over the implementation of the VIN Valuation policy.
They noted that the scheme had increased the cost of clearing vehicles at the various ports of the country.
The costs of used vehicles, popularly known as Tokunbo, imported into Nigeria dropped in the first half of 2022 (January to June) by N177.2 billion, according to data released by the National Bureau of Statistics (NBS).
Data from NBS titled ‘Foreign Trade in Goods Statistics’, showed that N72.3 billion and N96.7 billion worth of used vehicles were imported in the first and second quarter of 2022 respectively, which amounted to N169bn.
In comparison, Nigerians spent N346.2 billion to import used vehicles during the same period of 2021, including N174.2 billion worth of used cars in Q1 and N172 billion in Q2.
Also, in the second half of 2021, N185.4 billion and N85.7 billion were spent on used vehicles in Q3 and Q4 respectively, which amounted to N271.1 billion.
The drop in the cost of used cars imported into the country might be connected with the introduction of the Vehicle Identification Number (VIN) early this year for proper valuation of imported used vehicles.
The National Automotive Industry Development Plan Bill, popularly known as Auto Policy, is central to the development of the automotive industry.
“What happens is that they started their valuation from 2013. I remember sending a letter to the CG of Customs about this particular issue.
He said that the VIN had created more problems, noting that the government needed to intervene, if not there would be more problems.
“What they have done is that they are creating a lot of problems. They call it VIN valuation, but it is wrong. It is the vehicle identification number, which is the chassis number.
Meanwhile, a member of the National Association of Government Approved Freight Forwarders, Nnadi Ugochukwu, accused the government of punishing people unnecessarily with the policy.
He said that the government was forcing people to pay for vehicles of nine years old and above instead of the 15 years the law stipulated.
According to him, “The government policy is 15 years, so, it is supposed to start from 2008 for private vehicles.
But the Federal Government, through the Minister of Finance, Budget and National Planning, Zainab Ahmed, stated that the VIN which is under the National Vehicle Registry (VREG) was to increase revenue and curb smuggling and other criminal activities.
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