By Isapa Toromoyan
Following the ongoing scarcity of foreign exchange, increase in import duty and other related taxes, automobile dealers have decried inability to import fairly used cars into the country.
This unpalatable situation has forced the car dealers to resort to recycling of old cars (Nigerian used cars) while many importers have now abandoning the business for another business.
The President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, said the hikes in taxes, fuel and tariffs have affected importation of cars into the Nigerian ports.
According to him, the situation has driven a lot of importers out of the car business and the consequences are so much on their members.
“The further consequences on the populace, which at the end of the day, it might have serious safety issue because most of what is happening now is recycling of old cars that is used in Nigerian car.
“Importers can no longer bring in cars due to high foreign exchange rate. Apart from exchange rate, increase in import duty, which we have made it clear to government to do something about it. The hikes have adverse effects on our members because it has chase away some of our members from the business.
“Even when you buy a car and sold it at a profit, you cannot buy another one with the current price we used to import and that is why it made some people to leave the business. Government needs to take some urgent steps to address the situation,” he said.
He said if government fails to do something about it, apart from the transportation that will be badly affected, the safety of the people and the economy will be affected.
“You know, like I always say, the simple meaning of economy is the movement of goods and services and people from one place to another. That is what form the economy. So anything that affects the transportation affects the economy of the country.
“We believe we are part of the people that close to that sector and with the fx, which is high and then what put pressure upon it is the increase in import duty and which we have told government to do something about it. If not the after effects will be very drastic.
He said due to non-importation of these vehicles, which has to do with the transportation sector and every aspect of the nation’s economy, it has made people to be recycling old vehicles.
He warned that what it means to be recycling the old vehicles, accident and breakdown of these vehicles will be rampant, saying the situation has affected dealers’ members, which they are now out of business and look for other means of business.
