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Vehicle dealers urge Nigerian authorities to reduce tariffs on cars

A Car Mart in Nigeria

*The Association of Motor Dealers of Nigeria says there is a need for governmental authorities to reduce levies and tariffs on imported used vehicles into the country

Emmanuel Akosile | ConsumerConnect

Sequel to their several presentations to the relevant authorities with a view to enhancing car affordability by more Nigerians, the Association of Motor Dealers of Nigeria (AMDON) has urged the Federal Government to extend the reduction of five percent on imported vehicles to cars and minivans.

Prince Ajibola Adedoyin, National President of AMDON, who stated this during a media interview in Abuja, FCT, at the weekend, noted these vehicles carry less than 10 persons, making up the bulk of the vehicles used for intra-city and intercity transportation in the country.

The Association, however, eulogised President Muhammadu Buhari and Col. Hameed Ali (Rtd.), Comptroller-General of the Nigeria Customs Service (NCS), for heeding its call for a tariff slash on imported vehicles.

It was a way of improving Nigerians’ livelihood, and ultimately solving the transportation nightmare, said the car dealers.

The decision to reduce the duties and tariffs on imported vehicles that carry more than 10 persons from 35 percent to 5 percent was a soothing development that must be applauded, said Adedoyin.

On the need for reduction of duties on cars and minivans, the AMDON Chair stated: “It’s a welcome development.

“We’ve been at the forefront of this for some years now, trying to let the government know that there is a need to allow levies be reduced on imported used vehicles. We’ve made several presentations to relevant authorities.

“In fact, in this part of our world, that is the only means of transportation accessible to over 200 million people and that is why it’s been part of our cry for the government to bring down the price of imported vehicles.”

He stressed that “the cars should be included in this tariff reduction. We are not making a case for luxurious ones.

“They shouldn’t have limited it to vehicles that can carry more than 10 persons.

“These sorts of vehicles are widely used commercially. We are talking of Toyota Sienna, Volkswagen Sharon and others. These vehicles are everywhere for commercial purposes. Even cars, too.

Adedoyin added: “They are used for intracity and intercity transportation. That is why we said the government needs to do more and capture this category of vehicles in the tariff reduction.

“We’re giving him kudos for what he has done so far because it takes a strong political will to do so. But we urge him to do more.”

He, however, challenged the Nigerian Automotive Design and Development Council (NADDC) and other Nigerian vehicle assemblers to collaboratively come up with a locally designed and produced car that will cost between N1.5-N1.7 million.

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