Panic As Used Car Shippers In US, Canada Close Shops Over Customs Duty Rate Hike In Nigeria
By Editor
2 min read
Fairly used car dealers in the United States of America (USA) and Canada are gradually winding down their respective businesses over the incessant hike in Nigeria Customs ‘ duty rates, this newspaper’s findings have revealed.
With the continuous dominance of the dollar over the naira, exporters of vehicles from America and Canada respectively, can no longer cope with the situation, which in turn has led to the gradual halt of fairly used vehicle exportation to Nigeria.
Findings further revealed that vessels sailing to Nigeria from the two countries since December 2023 might be the last for a long while due to the lull in demand.
It was gathered that dealers in America cannot afford to pay warehouse rentages of the vehicles for sale due to low patronage by Nigerian dealers.
Most of the shippers who have large markets in Nigeria are calling on the government to look inward and put in place policies that will help them stay afloat.
Our source who was in Toronto, Canada between December and February 2024, confirmed that customers from Nigerian dealers cannot afford to buy cars for multiple reasons mostly as it concerns foreign exchange and the customs duty rates hike.
While shopping for vehicles to export from the American continent to Nigeria, a high profile shipper, Mr Festus Ikeja (not real name)who confirmed the development to this newspaper over the weekend, explained that over 70% of Nigerian exporters of used vehicles in Canada and America have closed shops due to the low patronage.
He lamented that Nigerian car dealers in the two aforementioned countries ship a high volume of used cars amounting to about 84% from Africa while 16% of vehicles are sold to other countries within the continent.
The shipper groaned that Nigerian car dealers in the USA and Canada are frustrated with the driving force on duty hike adding that the level of used vehicle patronage is witnessing what he described as an “all-time low”.
According to him, a 2015 Toyota Corolla used vehicle is estimated for 11,000
Canadian dollar adding that freight charges, customs duty, and other levies would amount to about N15,000,000.00 when converted to naira before the car can exit Nigeria port.
“After all these charges and levies at the port before the vehicle exits the port, please tell me, who will buy a fairly used vehicle for N16 million or more during this period of hardship in Nigeria ?”, the shipper queried.
Meanwhile, our correspondent who visited the popular “National car shop”, at Tin Can Island Port Complex confirmed a scanty number of failed used imported vehicles on display.
At the park, it was gathered that most of the vehicles available were imported in 2021 and 2022.
Our correspondent observed the frustration and apprehension on the faces of car dealers at the ever-busy “National vehicle market’ at Tin Can Island Port.
Recall that the exchange rate officially increased recently from N1,356.883 per dollar to a whopping 1,413.62 per dollar on the custom portal.
Source: DAILYFOCUS NIGERIA
