Customs e-valuation policy killing economy, fuelling smuggling – Adedoyin

President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, has described the e-valuation policy of the Nigeria Customs Service (NCS) as strangulatory and retrogressive to both the vehicle dealers and the Nigerian economy. At a media briefing with journalists at the weekend, Adedoyin said the new e-valuation policy has jacked up the prices […]

President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, has described the e-valuation policy of the Nigeria Customs Service (NCS) as strangulatory and retrogressive to both the vehicle dealers and the Nigerian economy.

At a media briefing with journalists at the weekend, Adedoyin said the new e-valuation policy has jacked up the prices of vehicles by close to a 100 per cent arising from the hurtful duty computations embedded in the policy.

He said the e-valuation remains the classic example of government’s insensitivity to the plight of Nigerians as foreign used vehicles are now outside the reach of the majority of Nigerians who are already battling poverty, insecurity, inflation and other challenges.

Adedoyin explained that the policy simply means the customs duty of any imported vehicle, regardless of the year of manufacture, will be computed based on the template of a 10-year vehicle.

“For instance, if you import a 2007 Toyota Corolla, you’ll pay the duty equivalent to that of the 2012 model, which is 10 years old being the maximum age any imported should be, according to the new arrangement. Even individuals who managed to save up to buy personal vehicles that hitherto sold for N2 million or a little above that will now have to cough out about N4 million in an already distressed economy. So, what good purpose does that serve?” he said.

Adedoyin further stated that the policy has taken a heavy toll on the association as over 350 vehicle importing and sales companies were on the verge of closing shops because they can no longer function under the asphyxiating circumstances occasioned by e-valuation.

“That figure is just for the companies themselves. Now, look at the bigger picture in terms of workers employed in these companies that would be thrown into the already saturated job market. We’re increasing unemployment in a country already battling insurgency and other deadly crimes that were caused by a large army of unemployed youths.

“So, to be frank, the e-valuation system is giving us a lot of issues.

“So, in view of this, we call on the government to see what they can do in that regard because it is quite unfortunate that the larger proportion of vehicles used for our day to day life activities falls outside the 10 years maximum age that was set by the Nigeria Customs Service and this has caused lots of issues”, the AMDON president explained.

Adedoyin also picked holes in the revenue generation philosophy behind the introduction of the e-valuation policy, saying it was a poorly-conceived programme that would ultimately rob the federal government of huge funds because the initiative naturally encourages massive smuggling of vehicles with its concomitant security implications.

“They’re just creating businesses for neighbouring countries because the vehicles meant for the Nigerian market would be shipped there and then smuggled into Nigeria by road without paying customs duties, taxes and other charges.