Public Relations Officer of the Nigerian Customs, Mr Wale Adeniyi, has explained what gave rise to the ban on importation of vehicles to Nigeria.
Mr Adeniyi who was a guest on Channels Television’s breakfast show, Sunrise Dialy, said the revenue from vehicles have accounted for 20% of the yearly revenue from the past 5 years, making it one of the top 3 performers.
According to him, this dwindled in the last 3 years, from about 144 billion in 2014 to about 86 billion Naira in 2016, which greatly affected the revenue base of the Nigerian Customs Service.
“The Federal Government looked into the matter and came up with steps to tackle it.
“Due to the diversions at the border, the Nigerian government got into an agreement with the Beninois government on international transit protocols”.
He then explained that this agreement was later breached by the Beninois government as Custom revenue was not remitted.
Hence, in order to protect national interest, the Government took the decision that Nigerian cargo should come to Nigerian ports.
He explained that as opposed to the believe that cars have been banned, “people don’t want to go with structure as regards paying the correct tariffs and therefore abandon the seaports for the borders”.
Adeniyi admitted there could be corrupt practices within the Customs, but smugglers pay the Benin charges and avoid the Nigerian Seaports in order to break even.
Furthermore, he also revealed that a new tax has been placed on new vehicles from South Africa, while 35% charge on new vehicles are being channeled to a particular subhead, dedicated to the development of the Automotive Industry.
“This charge doesn’t get to the federation account, but the National Automotive Account. This charge is only on new vehicles,” he stressed.
The Customs spokesperson also added that there is no difference between using the Nigerian seaport and that of the Benin republic, as the statutory charges are the same. The only difference according to him, is the people’s evasion of the Nigerian charges.
Adeniyi however said that the neighboring ports are more friendly considering the charges at the Nigerian ports, access roads, bank issues and cumbersome processes which make it a bit tedious and also contributes to why people find it easier using the Benin ports.
Also, he said that the 30-day grace was enough for the people to make adjustments.
Furthermore, he said charges can be reviewed if considered too high but Nigerians are advised to discharge their responsibilities and obligations as good citizens before holding the authorities accountable for the revenue collected.