CEM REPORT, TRADE | A total of N169 billion was spent on the importation of used cars in the country in the first six months of the year.
Importation of used cars into the country has continued to experience a decline, while stakeholders have attributed the decline to the introduction of the Vehicle Identification Number (VIN).
According to the National Bureau Statistics (NBS) report, used vehicles, with diesel or semi-diesel engines, of cylinder capacity imported in the first half of 2022 (H1’22) amounting to N169bn (N72.3bn in the first quarter and N96.7bn in the second quarter).
This is a decline of N177.2 billion from N346.2 billion imported in the same period of 2021 – N174.2bn in Q1 and N172bn in Q2.
Also, the recorded N169 billion in H1’22 is a 102.1 billion decline from the N271.1 billion – N185.4bn in Q3 and N85.7bn in Q4 respectively of 2021.
Ever since the deployment of VIN importers has decried the platform’s challenges. noting that the scheme had increased the cost of clearing used vehicles.
Clearing agents who kicked against the platform decried the high rate of abandoned imported vehicles and general cargoes at the ports due to its introduction.
Vice-President of the National Association of Government Approved Freight Forwarders, Mr Nnadi Ugochukwu, said there was an astronomical increase in the cost of clearing vehicles due to VIN.
“Before now, you could clear a vehicle with N500,000, but now you can clear the same vehicle with N2 million or more. You do not have any other option than to abandon the vehicles,” he had noted.
However, the Minister of Finance, Budget and National Planning, Zainab Ahmed, stated that the VIN which is under the National Vehicle Registry (VREG) was to increase revenue, and curb smuggling and other criminal activities.