Stakeholders in the maritime and automotive industry have urged the Federal Government to suspend the 15 per cent National Automated Council (NAC) levy imposed on imported vehicles, saying it has failed to achieve its purpose.

The Federal Government had initially introduced a two per cent NAC levy on imported vehicles to bolster indigenous car manufacturing and enhance the capacity of local vehicle production.

The Nigeria Customs Service (NCS), in April 2022, announced an increase in the NAC levy to 15 per cent, a development which further added to the already-high cost of clearing vehicles in the country.

The levy, coupled with the increase in foreign exchange rate has sparked apprehension and discontent among importers and clearing agents, who are now calling for the suspension of the NAC levy.

They argued that the levy has failed to achieve its objectives and has only burdened importers without adding any benefit to the automotive industry.

They also lamented that the levy has added to the financial strain on Nigerians.

The Public Relations Officer of the Association of Nigerian Licensed Customs Agents (ANLCA) PTML chapter, Ayokunle Sulaimon, expressed dissatisfaction with the NAC levy, noting that it has not contributed positively to the automobile industry.

Sulaimon, while urging the government to consider its total suspension, also questioned the utilisation of the funds collected so far while demanding for transparency and accountability.

“What brought about the NAC by the administration of President Olusegun Obasanjo was that it wanted to improve the automotive sector. It wants to use the levy to enhance productivity in the assembly of vehicles in Nigeria and to discourage importation.

“We have not seen any difference it has made. Initially, we were talking about reduction. But having deep analysis, we discovered that it plays no important role. So, it should be scrapped. I stand to be corrected. Let the government and agencies come out and tell us what the NAC levy has achieved. The people collecting the money need to be investigated because no one has been able to convince us that this money has been utilised judiciously. We are the ones paying the money. I won’t call it a scam until an investigation proves that,” he said.

The National Secretary of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Festus Ukwu, said there was no progress in the automotive sector despite the collection.

He alleged that none of the automobile or assembly plants in Nigeria are functioning, thereby making the levy irrelevant and unnecessary.

“The NAC levy was meant to help the growth of the automobile industry in the country. Right now, the automobile industry in the country is not functioning, apart from the privately owned automobile companies like Innoson.

“The government has not made any improvement even to assemble spare parts, so they are just collecting the money and we don’t know how the money is being used. The impact has no effect, so I wonder why we still need to pay for it because the purpose for which it was introduced has not been felt. No automobile or assembly plants are functioning in Nigeria. So, I support the removal of the levy,” he said.

On his part, the National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, called for the instant removal of NAC levy.

Ogunojemite argued that the 15 per cent levy places an additional burden on importers, especially at a high inflation regime.

“I am in support of the instant removal of the NAC levy because it is an additional cost to importation; inflation is almost at 30 per cent. I will advise the government to suspend the NAC levy,” he said.

Also speaking, another freight forwarder, Ojo Akintoye, expressed concern about the impact of the fluctuating dollar on importation costs.

He urged the removal of the 15 per cent levy to alleviate the pressure on businesses and importers.

A car dealer at Berger car market, Chibuike Jones, pointed out that the NAC levy has significantly affected the purchasing power of citizens coupled with the escalating fuel prices and economic hardships.

He also supported the removal of the levy, asserting that it has become increasingly difficult for people to afford new or even used vehicles.

While addressing clearing agents at Tincan Island Ports recently during an engagement, the Acting Comptroller General of the Nigeria Customs Service, Adewale Adeniyi, acknowledged the stakeholders’ concerns.

He assured them that the service would seek a review of NAC levy and other policies impacting the automotive industry negatively, even as he urged the stakeholders to give the service time to address their concerns.

“I have heard your concerns and the complaints, which your representatives have put across to us. Anybody who is in business wants to make a profit. However, the understanding that we must have is that your business must be conducted within the framework of the law.

“NAC levy and other taxes are policies. We would also have a position on it and we would engage the government. The most important thing is for us to listen to you when you express these concerns and then we go and address it,” Adeniyi stated.