E-VIN Valuation Implementation Will Deprive Nigerians Of Car Ownership – Uche Nlechin

 

Harboursandport.com: Lagos, 15/06/2022 - Chairman of New Park, United Berger Motor Association of Nigeria, UBMAN, Uche Nlechin, recently spoke with Harboursandport.com on the E-VIN Valuation introduced by the Nigeria Customs Service. Nlechin said the new policy will drive away "Tokunbo" vehicle importers from the business, shoot up the cost of such imported vehicles, drop in revenue collection by Customs and so much more.

 

Excerpts:

 

What is your opinion about the new e-Vin valuation introduced by the Nigeria Customs Service?

 

The truth is that the policy is not well articulated, the idea behind it is good but the way they are estimating it is not the right way, I think they want to raise money but they are supposed to consider the effect of the implementation on the final consumer.  

Now that they have raised duty on vehicles, the majority of vehicles used by Nigerians will stop being shipped into the country. Any imported vehicle lower than 2013 will attract almost the same duty you use to clear a 2005 Corolla, the same price you are expected to pay for a 2013 Corolla.

So the implication is that the Corolla that we use to clear with about N550,000 will now be cleared with about N1.47 million. It makes the price of smaller vehicles very expensive for the common man.

In a few months' time, when the old stock of imported vehicles runs out; the prices of the new utility vehicles in Nigeria like the Corolla, the Camry, and all those vehicles that are readily available for medium-income in Nigerians, the implication is that the cost will increase tremendously. For example, for a Corolla (2005, 2006, or 2007 models), a buyer will have to pay about N5 million before purchasing the vehicle. The normal E.S (2008) that the young men are buying that is sold about N4 million-plus will become about N6 million and that is the implication.

 

It is like the policy affects smaller vehicles more than the luxury ones?

 

Yes. The smaller vehicles will be out of the reach of the common man, it is understandable for bigger cars that are not everyday vehicles for the average Nigerians. If the rich people can afford to pay for the clearing, at least it would have been the order way round for higher-level vehicles to pay more duty so that privileged Nigerians can pay more for clearing their cars and still achieve what they want.

 

The implication of the policy presently is that owners of luxury vehicles are paying less duty for their vehicles compared to duty paid for smaller vehicles.

 

Except the government come out and tell us clearly that they do not want these vehicles to come into the country anymore.