High Customs duty charged by the Federal Government on imported brand new cars encourages the import of ‘tokunbo’ cars into the country, Daily Trust has learnt.
Speaking exclusively to Daily Trust at the ongoing Auto Exhibition at the Eagle’s Square in Abuja, the Executive Director of CIG Motors Company Limited, Khadijah Junaid, lamented that it is part of the reasons some Nigerians buy ‘tokunbo’ or used cars because they are relatively cheaper.
“For new vehicles, the Customs duty that we have to pay, they moved it from 30 per cent to like 70 per cent. Imagine the margin! There is no how it will not affect the price of the car,” she said.
Lamenting further on the problem, she said, “For brand new vehicles, I can tell you that the Customs duty is killing. If you are bringing ‘tokunbo’, the Customs duty is lower and I think the government should do something about this. They should encourage bringing brand new cars into the country as opposed to tokunbos.”
She pointed out that used cars come with auto defaults and auto challenges which the users are not aware of.
Also speaking with Daily Trust at the exhibition venue, a staff of KIA Motors and Dana Motors under the vehicle section, Bilkisu Ojeaga, said her company targets “uncommon sales” during the exhibition.
She revealed that all the brands in exhibition are assembled in Nigeria, an indication that the auto industry in the country is gaining a boost.
On local production of vehicles in the country, she said Nigeria has no steel company that is functioning well and this must be put in place for local production to kick off.
“For production, it will be difficult because we don’t have a still company that is doing very well. So it will be difficult for Nigeria to start producing but the best we can do for now is assembling which we are doing already,” she said.
On the affordability of KIA vehicles, she said, “all our vehicles are all affordable. Starting from our KIA Picanto, it is for N2.277m. You see people buying tokunbo cars for three point something million when you can afford to buy a brand new car of two point something million and you will enjoy the car like for five years without problem,” she said.