Investigations have revealed how Nigerian automobile dealers conceal vehicles with minor dents as salvage cars to qualify for 40 to 60 per cent duty rebates for such vehicles, a practice that may have become a survival measure against lull in the retail...
Investigations have revealed how Nigerian automobile dealers conceal vehicles with minor dents as salvage cars to qualify for 40 to 60 per cent duty rebates for such vehicles, a practice that may have become a survival measure against lull in the retail sector...
The Nigerian Ports Consultative Council Port Performance Report, last year, put the number of imported used vehicles at 132,296 units, a 32 per cent decline from 194,550 imported the previous year. The Guardian had reported that the cheapest cars were being cleared at about N2.5 million in March when the import duty exchange rate was raised to over N1600/$.
During a visit by The Guardian to the Roll on Roll off terminals at Tin Can Island Port, most vehicles awaiting clearance were salvaged. The importation of accident vehicles has surged due to economic hardships and the steep cost of clearing new vehicles, with prices of popular models increasing by about 400 per cent in the last four years.
The report indicates that Nigeria has approximately 14 million cars on its roads, with used cars constituting about 70 per cent of vehicle sales. Notably, estimates suggest that over 80 per cent of the used imports were previously damaged. Many of these imports are severely damaged vehicles that were once dismantled for parts. But even those with significant structural damage are repaired and used by owners out of necessity, experts have disclosed.
According to the National Public Relations Officer for the Association of Registered Freight Forwarders of Nigeria , Taiwo Fatomilola, both damaged and clean used vehicles are subject to the same import duties except that there is a rebate on the former. Julius Okechukwu Mbah, who is based in Maryland, noted that the pricing of such vehicles varies depending on their make, model and extent of damage.
A mechanic in the UK said because the cost of repairing accident vehicles is high in the West, they are written off and either taken to the scrap yards where they are dismantled or sold to dealers from Africa.He said Toyota and other foreign-made vehicles’ parts are very expensive in the United States, while the cost of parts for Ford and American cars is moderate.
Meanwhile, the cost of repairing accident vehicles in Nigeria is much cheaper owing to the flourishing of the second-hand auto part market and roadside mechanics. For instance, the Ladipo Used Part Market in Lagos has become where mechanics from all parts of Africa source parts. However, despite the skills of Nigerian mechanics, the longevity and safety of these repaired vehicles remain questionable.
However, some of these accident vehicles develop problems for the rest of their life cycle, thereby costing the buyer more money to repair, which affects their safety and leads to road crashes. Unfortunately, there are currently no regulations specifically addressing the importation of damaged vehicles in Nigeria, allowing such cars to be driven without stringent checks on their roadworthiness or safety.
The ministries of transportation of the United Kingdom and the United States take a serious approach to inspection to help maintain these vehicles, keep the roads safe and spot potential problems to avoid and reduce the number of vehicle crashes and deaths. The agencies under the ministry, which are saddled with the mandate to ensure issuance, technical inspection, test and determination of Road Worthiness Certificates to all vehicles as well as investigating and inspecting accident vehicles, are not properly regulating such vehicles.
Investigations have revealed how Nigerian automobile dealers conceal vehicles with minor dents as salvage cars to qualify for 40 to 60 per cent duty rebates for such vehicles, a practice that may have become a survival measure against lull in the retail sector...
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