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Imported vehicles: FG loses 50% revenue to smuggling, underpayment

Published

5 years ago

June 7, 2021

The Federal Government is losing about 50 per cent of its expected revenue from duties payable on imported vehicles as many automobile vehicles in Nigeria are reportedly coming in illegally through the borders and seaports without payment of duties to the government treasury.

Multiple sources in the nation’s automobile market comprising imported new and used vehicle outlets confirmed this in an investigation that lasted about a week.

One of the sources said, “It is a disputed fact that smuggling of vehicles into Nigeria is still ongoing. But what is disturbing is that a good number of vehicles come in through the seaports and yet they either bypass the duty payment outright or pay just a token, an amount that is about 50 per cent of the approved rate.

“At least one out of two vehicles imported into Nigeria does not pay the full import duty and levy.”

Investigation also revealed that the economic sabotage, which gained traction in the first quarter of 2016, when the land borders were closed by President Mohammadu Buhari regime, is perpetrated by either influential people/dealers who hand out signed documents to the Customs officers or bribe their way to clear the vehicles without due process.

In connivance with unscrupulous government officials, some dealers are treated as sacred cows and they are quick to get away with anything at the ports.

The illegal business does not stop at seaports alone; similar dealings have been reported in major land borders across the country.

It would be recalled that the Nigeria Customs Service (NCS) had in September 2019 raided some top car marts in Lagos.

The second hand vehicles dealers were not spared as most of their showrooms were equally closed too due to reasons that had to do with documentation.

The Comptroller General’s Strike Force and officers attached to the Federal Operations Unit (FOU), Zone ‘A’, Ikeja stormed Berger along Apapa-Oshodi Expressway and other premises across the state.

Many of the outlets were shut on the orders of the Comptroller General of the NCS, Col. Hameed Ali (retd), for allegedly retailing smuggled vehicles in the shops.

Major car dealers such as Affordable Cars Limited, Carlink Limited, Ineh Mic Autos, Globe Motors, Coscharis, Skymit Motors, Arrowhead Motors, Wonder Wheels Motors, Auto Point Motors, among others were raided. Showrooms in other states, including, Sokoto, Katsina were also affected.

Commenting on the issue, Executive Secretary, Nigeria Automotive Manufacturers Association, (NAMA), Mr Remi Olaofe, said, “You can’t say there is no smuggling in Nigeria; our borders are porous and we have done everything we needed to do to improve it, by shutting down the borders, but they are still porous.

Olaofe said it was a fallacy to say for every vehicle coming into the country, appropriate duties are being paid.

Stating that NAMA had proffered solution to the menace, Olaofe said that with their portal and that of the National Automotive Design and Development Council, it would be 100 per cent impossible for anybody to import a vehicle and not properly register in Nigeria because the portal will indicate that the appropriate amount of money is not paid.

“It is just as simple as that, but for the reason best known to the operators and the players in that market, they have refused to allow that portal to work”, he said.

Advising that vehicles must be registered for them to be driven on the road, Olaofe added, “You can’t be driving a vehicle that is not registered. To know this, they should go to the licensing office because the licensing office can not license a vehicle without first clarifying from the portal and that clears the vehicle. If that is not there, we have what is called the BIN number, will throw up a red flag.”

Explaining further, Olaofe said “I don’t represent the (FBU) Fully-Built Vehicle, my advocacy is for us to shut our doors against the FBUs. Assembling of vehicles in Nigeria is what I represent.”

Confirming that the duty waiver for vehicles had been adjusted, but there was no difference in the rate of vehicles, the NAMA executive secretary said, “We are saying that it is not duty that is affecting the rate we are paying as transportation fare, but the factors are the cost of fuel, infrastructure, security on the road, wear and tear, replacement of these spare parts and the conditions of the vehicles. They bring a lot of junks into this country.

“Africa Bilateral Free Trade Agreement has taken off, where is Nigeria in the scheme of things? Assembly plants are now moved to Ghana, what do we stand to benefit? Toyota, Hyundai and co are being assembled in Ghana, are those for Ghana economy? They are for Nigeria economy”, Olaofe added.

Also reacting to the situation, Kunle Jaiyesimi, Deputy Managing Director, Massilia Motors, dealers of Mitsubishi brand of vehicles said most car dealers, including Masillia Motors are still selling their old stock and that his company had stocked up to December for the 2021 business.

According to him, car market has really shrunk and that dealers have not really made major decisions in 2021 in terms of vehicle imports.

Jaiyesimi said, “To the assemblers, they are not happy with the Finance Act; it’s making the locally assembled vehicles uncompetitive compared to the Fully Built Units. For instance, Fuso and Canter (Mitsubishi) that we are assembling, it is cheaper to bring them in as FBU than locally assembling them. And that has affected our production lines.

Jaiyesimi who is also the Chairman, Auto Group of the LCCI proffered solutions, saying that “the only way for us have some gain on the assembly line is for govt to remove the import duty or reduce it. If they cannot remove it, they can bring it down to five per cent.”

The DMD said that, for now, they are charging 40 per cent (35 per cent import duty and five per cent for levy) on passenger cars for FBU; 10 per cent on (Semi Knocked Down (SKD) and 10 per cent on FBU buses.

He argued that whatever duty reduction the government had put in place for them to enjoy, the benefit was being wiped off by the exchange rate fluctuations, stressing that the CBN was not supporting vehicle importers at the SKD or FBU level.

According to him, stakeholders rely heavily on the black market to pay their suppliers.

” Once you are getting your FX from the black market, whatever gain that is coming from the import duty reduction is lost in the over 25 per cent increase in the FX rate”, Jaiyesimi added.

One of the implications of vehicle smuggling or duty evasion is that the vehicles from these illegal auto dealers are sold easily at cheap prices because they never pay the right duty to get them into the country.

Consequently, the genuine dealers are left to suffer the outcome as they cannot sell vehicles lower than the actual cost of bringing them to the showrooms.

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Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

Published

1 day ago

April 21, 2026

Trends Admin

Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

Nigeria’s automotive landscape witnessed a significant shift on Wednesday as Soueast formally entered the Nigerian market, courtesy of the Kewalram Chanrai Group. The entry was marked by a media launch followed by a test drive of its full range of SUVs along the scenic Coastal Highway in Lagos, signalling a fresh wave of competition in the fast-evolving mobility space.

The high-profile event brought together dealerships, media, and auto enthusiasts, offering first-hand experience of the brand’s capabilities in real driving conditions.

Speaking at the launch, Chief Operating Officer, Mobility Division of Kewalram Chanrai Group, Mr. Anil Sahgal, described the move as a strategic response to changing consumer expectations in Nigeria.

“For over 165 years, Kewalram Chanrai Group’s reputation has been built on trust delivered through consistency,” he said. “Our decision to bring Soueast into Nigeria is deliberate. Today’s Nigerian customer is more informed and focused on long-term value. There is a growing demand for vehicles that combine modern design, safety, technology, durability, and affordability — and Soueast fits precisely into this space.”

Soueast Enters Nigeria with Robust SUV Portfolio, Sets Sights on Q3 Local Assembly

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CFAO Mobility Open Day to offer special deals on new vehicles, parts, diagnostics

Published

2 weeks ago

April 10, 2026

Trends Admin

CFAO Mobility Open Day to offer special deals on new vehicles, parts, diagnostics

CFAO Mobility has announced plans to host the 2026 edition of its flagship CFAO Mobility Open Day, aimed at showcasing a wide range of innovative mobility solutions.

In a statement, the company said the event would take place on Thursday, April 30, 2026, at Harbour Point, Victoria Island, Lagos, from 9am to 6pm.

The Open Day is expected to bring together leading global automotive and equipment brands in a dynamic exhibition tailored to meet diverse mobility needs.

Participating brands are Toyota, BYD, Mitsubishi, Suzuki, Fuso, JCB, Howo, Sino Equipment, King Long, TechKing Tyres, Yamaha, Winpart and Auto Fast.

According to CFAO Mobility, attendees will experience an extensive display of products and services, ranging from brand-new vehicles and motorcycles to outboard engines, fleet management solutions, spare parts and aftermarket services.

The event, which is free and open to the public, will also feature test drives, professional vehicle diagnostics and exclusive spare-parts deals, offering participants a hands-on and engaging experience.

The company urged car enthusiasts, business owners and prospective buyers to take advantage of the Open Day to explore mobility solutions tailored to their personal and business needs.

With over 120 years of presence in Nigeria, CFAO Mobility remains a key player in the mobility and healthcare sectors.

It added that the Open Day reflects its continued commitment to delivering innovative, customer-focused mobility solutions.

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Jetour set to ignite Lagos with four-day automotive experience

Published

2 weeks ago

April 9, 2026

Trends Admin

Jetour set to ignite Lagos with four-day automotive experience

Lovers of sophisticated and elegant SUVs in Lagos are about to witness a combination of automotive engineering and urban lifestyle as Jetour Nigeria announces the hosting of a flagship event, “The Jetour Experience,” a four-day immersive festival designed to redefine how Nigerians interact with the road.

From April 16 to 19, 2026, The Podium in Lekki, Lagos, will be transformed into a high-energy hub where sleek design meets high-octane entertainment. This is not just a standard car show; it’s a curated lifestyle destination, says the organisers in a statement.

The four-day event is said to promise a fusion of horsepower, high fashion, and plenty of fun.

Tagged “The Jetour Experience,” the four-day extravaganza is not just about gleaming chrome and leather seats; it is a high-octane celebration aimed at blurring the lines between mobility and entertainment.

Specifically, it stated that the exhibition would feature test drives, virtual reality gaming, fitness sessions, and interactive activities with branded giveaways.

The statement added that the arena would buzz with entertainment, including contests and interactive games, giving guests the chance to win exclusive branded gifts and prizes.

In a massive show of force, Jetour says it is partnering with its seven prestigious accredited dealers—Elizade Nigeria Limited, New Era Autovehicle Services Limited, Kojo Motors, R.T. Briscoe, Tab Autos Limited, Mandilas Motors, and Germaine Auto Centre —to bring their full fleet to the public.

Whether you are an eco-conscious commuter or an off-road adventurer, the lineup has something for everyone, according to a statement by the Jetour Nigeria.

The Urban Explorers: X50 and X70

The Sophisticates: X70 Plus and X90 Plus

The Eco-Warriors: X70 PHEV and T2 PHEV (Plug-in Hybrids)

The Icons: The rugged T2 and the razor-sharp Dashing

Jetour is blurring the lines between mobility and entertainment. Running daily from 9:00 am to 7:00 pm, the event promises a packed itinerary designed to keep the adrenaline pumping.

Visitors will also push limits during test drives, explore virtual reality (VR) gaming such as foosball, and take part in curated fitness sessions.

In a creative masterstroke, the grand finale will feature a car runway fashion show. Attendees can expect a visual feast where automotive engineering meets sartorial elegance, reinforcing the idea that a Jetour is not just a vehicle but a fashion statement.

The firm stated, “Beyond the glitz, the event maintains a strong focus on safety. A dedicated panel discussion featuring stakeholders and officials from the Federal Road Safety Corps (FRSC) will explore road safety, tech-driven security, and the future of motoring in Nigeria.

“With its blend of adrenaline, artistry, and advocacy, Jetour Nigeria isn’t just hosting an event; it is creating a destination.”