Will Ban On Vehicle Importation Through Land Borders Help Economy?

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In my view, the ban will not help the economy. What I actually thought the government should have done before taking such an action is to reduce tariff on cars brought into the country through the ports. It is high tariff that encouraged people to bring in cars through land borders.

In neighbouring Benin Republic, Cotonou to be precise, irrespective of the vehicle you are bringing in, the duty is the same. Importers bringing in vehicles through Benin Republic pay all the charges – cost of clearing and customs duty without hassle; but the story is different when it comes to Nigeria. Most of the vehicles which come in don’t pay duty to government, largely because of the systemic problems we are facing.

Government should take a second look at this policy, because apart from the issue of revenue, there are also a lot of citizens engaged in this business, which also has a multiplier effect.The borders are so porous that some people will clear their vehicles in Cotonou; drive all the way to Nigerian border without paying any duty. If the main objective of the ban is for government to raise money, the best thing to do is for it to reduce tariff and encourage supervised imports. How many Nigerians can afford brand new cars using honest means today? If you argue that banks have loan facilities, how many banks are giving out these facilities and at what rate?

Tajudeen Ajibade (A communication consultant).

The ban on the importation of ‘used cars’ by the Federal Government is fantastic for the economy. I have my reasons. It is only a mad country that has six motor industries and allow them to die; and then allow ‘scraps’ into the country in the name of used vehicles.

It is not done anywhere in the world. But the government did not even ban importation of used cars. What the government did was that if car dealers are importing used vehicles to say Benin Republic and can afford to pay tax to the government of that country, why can’t they import it directly to Nigerian ports and pay the necessary charges instead of smuggling it through the bush?

What the government is saying is that if you want to sell used cars, let it pass through the normal channels. For instance, you pay taxes on the used vehicles in Benin Republic, but choose to pass through the bush to avoid paying some charges to the Nigerian government, thereby subverting the economy; that’s not fair.

What the government is actually saying is that, if you want to sell used cars, we are not banning you, but you must pay all the charges. Is it not through the sea that the vehicles come? Ok, let them come through Tin can Island, Apapa Warf, Warri and Port Harcourt, and if you bring them down there, you pay the tax to the Nigeria government.

Bala Zaka (Technical Director, Template Design Limited)
Generally, the timing given for the ban is too short. Secondly, the economy is very fragile now. Banning importation of vehicles through land borders is not the same thing as banning goods like rice, shoes toothpick, and honey. There is nothing wrong in allowing cars to come through land borders. The government just needs to make sure that Nigerian customs is strengthened.

The government should also strengthen the land borders and come up with mechanism that will ensure that anybody, who is bringing in vehicles or any other goods does not escape the necessary customs charges. If the government thinks that bringing vehicles through land borders will encourage corruption, there will also be corruption at sea ports if the agency is not strengthened.

Mobolaji Ojibara, (Former Chairman of the Nigerian Bar Association, Ilorin branch, Kwara State).
It is a good plan for the economy, but the time of its introduction is wrong. I believe the intention for the ban is to ensure the growth of the economy by stimulating the purchase and use of locally-manufactured cars, which in the long run will bring about a boost in the economy.

But I think before the government introduced this kind of policy, it should have put in place certain measures to cushion the effects the policy would have on the people.

For instance, with the ban on the purchase of used cars, you expect that people will buy new cars that are imported or the ones that are manufactured in the country. But are the made-in-Nigeria cars affordable to the citizens?

If we are being encouraged to patronize made-in-Nigeria goods, they should have them readily available. But in a situation where they are not even available, and it is made so difficult to get those goods that are being imported, I think it is not a policy that will be welcome by the people. If a policy is being introduced to develop the economy of a particular country, it should be such that the people of the society or nation will benefit immensely from.

The policy should have been a welcome development, but with the situation of the country; I think the introduction at this point is wrong. The timing for the introduction is wrong. We do not have on the ground the necessary measures that will ensure the success of the policy. I do not think the companies or the plants that will produce the cars that are expected to be made-in-Nigeria are well established to ensure that the policy is effective or will be successful.

The government should suspend the policy and put in place the necessary measures that will cushion the effects of lack of importation of those used cars.

For instance, if you are importing cars and you are told that you will probably pay higher import duties on the car; can an average Nigerian afford this kind of duties at this time? I believe that the government means well for the citizens, but then they have to also gauge the pulse of the populace when policies are being introduced.

Chief Chekwas Okorie (National Chairman of the United Peoples Party)
The ban is not good for our economy especially at this time of recession when we need to engage our people in economic activities. The Nigeria Customs Service has a duty to man our borders to ensure that goods being brought in pay the correct duties and levies and prevent smuggling. This ban has the potential to increase smuggling activities, because some importers may become desperate. And since our borders are porous, smugglers will become more daring thereby further denying the country the revenue it seriously needs.

To me, this ban is unhealthy for our economic growth. There is no country in the world where there are no importation of goods and services. What we need to do is to ensure that such imports follow due processes and appropriate duties paid. I suggest that officers of the Nigerian Customs should be motivated and encouraged to do their jobs but banning the importation of vehicles through the land borders is not the way to go.

Tunji Ogunlola (Director, FAMYEM Motors, Ekiti State)
The ban on importation of used vehicles through land borders may curb smuggling to some extent; but the overall effect of the policy on the economy will be negative.

If you look at the majority of Nigerians, they are in a group of low income earners. So, with this policy, the prices of used cars will skyrocket and most of them will automatically be excluded from the category of people who can drive manageable cars.

Most workers get car loan of about N500,000; so tell me what brand of car will this amount buy? The effect is that masses, who have rickety cars, will continue to drive them about until the cars break down completely. The effect of rickety vehicles on the environment is massive. The health effect is there as well and this will affect our economy negatively at the end.

How many transporters do you think can afford to purchase new buses? Most buy third-hand vehicles and some of them who can buy used cars will be shut out of the market with the implementation of the policy.

So, I am appealing to the Federal Government to rescind the decision because it will also throw many of us, who are dealers, out of jobs and many of those who depend on us will be negatively a