The Seaport Terminal Operators of Nigeria (STOAN) has commended President Muhammadu Buhari for banning the importation of vehicles into the country through the land borders.
STOAN Chairman, Princess (Dr.) Vicky Haastrup, while reacting to the ban announced by the Federal Government on Monday said the move, if well implemented by the Nigeria Customs Service, will reduce vehicle smuggling and revive the operations of Roll-On-Roll-Off (RORO) terminals in the country.
Customs Public Relations Officers, Wale Adeniyi, confirmed the ban in a statement he issued on Monday.
According to the statement, “Importation of vehicles into Nigeria through the land borders have been banned by the Federal Government. The prohibition order covers all new and used vehicles.
“The ban is equal to a Presidential Directive restricting all vehicle imports to Nigeria to seaports only. The order takes effect from 1st January 2017.
“The restriction of importation of vehicles follows that of rice, whose imports have been banned through the land borders since April 2016.
“Importers of vehicles through the land borders are requested to utilise the grace period up till 31st December 2016 to clear their vehicle imports landed in neighbouring ports.”
While reacting to the development, Princess Haastrup asked government to take a step further by scrapping the high import duty regime imposed on vehicles by the administration of former President Goodluck Jonathan in 2013.
“We are confident of the ability of President Muhammadu Buhari to turn the economy around. The earlier ban on importation of rice, and now of vehicles, through the land borders is a welcome development.
“We are happy that the President has listened to our appeal to reverse incongruous policies inherited by his government from the former administration and which have deprived Nigerian ports of cargoes to the advantage of the ports of neighbouring countries.
“In addition to this ban through the land borders, we appeal to the President to return the import duties on vehicles to 20% from the prohibitive 70% tariff imposed by the former administration.
“The reversal to the old tariff will serve as an incentive for Nigerians to import legitimately through the seaports and make appropriate payments to government. This will boost revenue collection by the Nigeria Customs Service. It will also lead to the return of lost jobs at the affected ports.
“We also appeal to Customs officers at the border posts to support the Federal Government and the NCS leadership by ensuring that no smuggled vehicle finds its way into the country through the land borders from 1st January 2017 when the new policy is expected to come into effect,” Princess Haastrup said.
She said since 2014 when the 70% hike in the tariff of imported vehicles came into effect, Nigeria had lost 80% of its vehicle cargo traffic to the ports of neighbouring countries.
“Since the high tariff was introduced, importers have resorted to landing their vehicles at the ports of neighbouring countries and smuggling them into Nigeria without paying appropriate duties to government. This amounted to huge revenue loss to Customs.
“The policy also led to loss of more 5,000 direct and indirect jobs at the affected port,” the STOAN Chairman said.
Copyright 2017 Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.