A surge of accident-damaged vehicles at Nigerian ports is being driven largely by high import duties on new vehicles, according to Dr Kayode Farinto, a licensed Customs Broker and immediate acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA).

Speaking to newsmen at his office, Dr Farinto explained that the difference in duty rates incentivises importers to bring in accidented vehicles rather than new ones.

“If you look at the current situation at some port terminals, we see a high influx of ‘accidented’ vehicles. This is so because the government policy on revenue collection for vehicles is too harsh,” he said.

He described the process, known as ‘840’, through which accidented vehicles are inspected by Customs to verify damage, allowing importers to pay a reduced duty.

“If the duty for a new vehicle is $4,000, because it’s accidented, they’ll give you a rebate and say go and pay $2,000. So the owner goes and pays $2,000 and goes to repair the vehicle,” Dr. Farinto said.

The Customs official linked the preference for accidented vehicles to government policy aimed at encouraging new vehicle imports, but warned of the safety risks posed by damaged vehicles on Nigerian roads.

“Out of all the 100 per cent accidents on the road, 35 per cent is contributed as a result of accidented vehicles. Most of the accidented vehicles have had their chassis affected. When an accidented vehicle is moving on the road, the moment that vehicle is on the speed limit of 100, it starts vibrating, and it can cause commotion, particularly for commercial vehicles,” he explained.

Dr Farinto called for a review of the 50 percent levy on used vehicles, which he said was initially introduced under former President Goodluck Jonathan to discourage used vehicle imports and promote new ones.

“Government should review that 50 per cent levy. Whoever is telling you that a used vehicle does not have value is wrong. Legal notices give room for what is called wear and tear. By the year of manufacture, it starts progressing by 10 per cent devaluation; that is wear and tear,” he said.

He further detailed the financial burden imposed on vehicle importers.

“If a new vehicle is $25,000, and you are bringing in the vehicle, it will just apply the legal notices. But if a vehicle is $5,000, then do the calculation. Does it still not have value? Do you know that the lowest target of any vehicle you bring in, you are going to pay duty of 20 per cent? That is about N7 million to N8 million,” he said.

Dr Farinto said the broader economic impact of high duties on used vehicles.

“Before now, Nigerian graduates could afford used vehicles, convert them to Bolt or Uber, and make a living. But now, it’s very difficult. Most of the banks are now going for Nigerian used vehicles. Even the House of Assembly is going for Nigerian used vehicles because new vehicles are very expensive,” he noted.

The ANLCA leader urged the federal government to reconsider duty rates on used vehicles to make them more accessible and reduce the reliance on accidented imports.