Post by Ismail AbdulAzeez on Sept 20, 2021 20:31:47 GMT 1
Nigeria Imported Motor Vehicles Valued At N601 Billion In First Half Of 2021 – National Bureau of Statistics (NBS)
Nigeria expended a total of N601.51 on the importation of motor vehicles in the first half (H1) of 2021 as disclosed by the National Bureau of Statistics (NBS).
The report stated that this amount represents a 15% increase when compared to the value of last year which was N523.57 expended in the first half of 2020.
According to the website of the National Bureau of Statistics (NBS), vehicle imports into the country during this period accounted for 4.4% of the total importation value of N13.8 trillion recorded during the period under review.
However, the sum of N1.09 trillion was spent on motor vehicle import during the last year.
It is also recorded that during the second quarter of 2021, import of passenger cars grew by 14.03% to the value of N311.63 billion compared to N273.28 billion spent on the same passenger cars during the same quarter in 2020.
When you look at the statistics deeply you can see that Nigeria has steadily increased its import of vehicles by 195% from N371.98 billion in 2018 to N1.09 trillion in 2020, a period of three years.
Experts are attributing this increase to the emergence of car hailing services like Uber, Bolt, and Taxify.
The import of motor vehicles in Quarter two of 2021, making up 39% of the total transport equipment and parts imported during the same period which was valued at N798.51 billion.
Under the same period, Nigeria imported used vehicles to the tune of N172.1 billion in the Q2 of the same year. This is the third highest imported item by value in the same period.
Recall that we brought you information that in January 2021, the Federal Government of Nigeria (FGN) revised the import duty tariff for transport vehicles from 35% to 10%. This was part of the measures Government took to ease the cost of transportation across the country, and also to reduce the effect of the pandemic on the citizens in the year 2020 through the transport sector.
Though the Federal Government had announced a slash in import duties for tractors, transport vehicles, among others to cushion the effect of the pandemic, people are still complaining that it has not had any positive effect on the operating environment as importers say that they still pay huge charges.
Also importers, car dealers and freight forwarders have kicked against the increase of 50% in the terminal handling charges, saying the development would heighten inflation.
They complained bitterly that the development will further worsen the economic situation for the masses that are still grappling with the shocks of two recessions; this will surely drive importers and investors to patronize ports of neighboring countries to handle their importation businesses.
The Public Relations officer of the Association of Nigerian Licenced Customs Agents (ANCLA) at PTML Terminal, Ayokunle Sulaimon, lamented that terminal handling, delivery, documentation and demurrage charges have all been increased.
He said: “There has been a 50 percent increase in the charges including terminal documentation. For vehicles, terminal documentation had been N10, 000; it has now been increased to N15,000. Terminal handling charges and terminal delivery charges are the core aspects of the job; all other ones like demurrage are avoidable.”
The public relations officer however complained that there was no consultation with them before the terminal operators implemented the hike in charges. They were supposed to inform other stakeholders about their decision to hike charges before implementing them, Sulaiman said.
Car dealers are seriously complaining about the effect of these increases on the prices of cars in the country. They are saying that the increase in charges will definitely affect car business as buyers would not be able to afford cars beyond their budget.
Nigeria expended a total of N601.51 on the importation of motor vehicles in the first half (H1) of 2021 as disclosed by the National Bureau of Statistics (NBS).
The report stated that this amount represents a 15% increase when compared to the value of last year which was N523.57 expended in the first half of 2020.
According to the website of the National Bureau of Statistics (NBS), vehicle imports into the country during this period accounted for 4.4% of the total importation value of N13.8 trillion recorded during the period under review.
However, the sum of N1.09 trillion was spent on motor vehicle import during the last year.
It is also recorded that during the second quarter of 2021, import of passenger cars grew by 14.03% to the value of N311.63 billion compared to N273.28 billion spent on the same passenger cars during the same quarter in 2020.
When you look at the statistics deeply you can see that Nigeria has steadily increased its import of vehicles by 195% from N371.98 billion in 2018 to N1.09 trillion in 2020, a period of three years.
Experts are attributing this increase to the emergence of car hailing services like Uber, Bolt, and Taxify.
The import of motor vehicles in Quarter two of 2021, making up 39% of the total transport equipment and parts imported during the same period which was valued at N798.51 billion.
Under the same period, Nigeria imported used vehicles to the tune of N172.1 billion in the Q2 of the same year. This is the third highest imported item by value in the same period.
Recall that we brought you information that in January 2021, the Federal Government of Nigeria (FGN) revised the import duty tariff for transport vehicles from 35% to 10%. This was part of the measures Government took to ease the cost of transportation across the country, and also to reduce the effect of the pandemic on the citizens in the year 2020 through the transport sector.
Though the Federal Government had announced a slash in import duties for tractors, transport vehicles, among others to cushion the effect of the pandemic, people are still complaining that it has not had any positive effect on the operating environment as importers say that they still pay huge charges.
Also importers, car dealers and freight forwarders have kicked against the increase of 50% in the terminal handling charges, saying the development would heighten inflation.
They complained bitterly that the development will further worsen the economic situation for the masses that are still grappling with the shocks of two recessions; this will surely drive importers and investors to patronize ports of neighboring countries to handle their importation businesses.
The Public Relations officer of the Association of Nigerian Licenced Customs Agents (ANCLA) at PTML Terminal, Ayokunle Sulaimon, lamented that terminal handling, delivery, documentation and demurrage charges have all been increased.
He said: “There has been a 50 percent increase in the charges including terminal documentation. For vehicles, terminal documentation had been N10, 000; it has now been increased to N15,000. Terminal handling charges and terminal delivery charges are the core aspects of the job; all other ones like demurrage are avoidable.”
The public relations officer however complained that there was no consultation with them before the terminal operators implemented the hike in charges. They were supposed to inform other stakeholders about their decision to hike charges before implementing them, Sulaiman said.
Car dealers are seriously complaining about the effect of these increases on the prices of cars in the country. They are saying that the increase in charges will definitely affect car business as buyers would not be able to afford cars beyond their budget.