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

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5 years ago

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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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High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

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21 hours ago

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August 5, 2026

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High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

Rising electricity costs have forced Bayero University, Kano, to ban the charging of privately owned electric motorcycles and other electric vehicles across its campuses.

The university said the growing practice of using its electricity supply to charge private electric vehicles had contributed significantly to a sharp increase in its power bills, creating an additional financial burden for the institution.

The directive, which takes immediate effect, was contained in a statement issued on Tuesday by the university’s Director of Public Affairs, Lamara Garba.

According to the statement, the management has observed the “indiscriminate charging” of privately owned electric motorcycles and other electric vehicles using the university’s electricity supply.

It said the development was no longer sustainable at a time when the institution was seeking to manage its resources prudently.

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“The Management of Bayero University, Kano has observed with concern the indiscriminate charging of privately owned electric motorcycles and other electric vehicles using the University’s electricity supply across its campuses.

“This practice has contributed significantly to the sharp increase in the University’s electricity bills, thereby placing an enormous financial burden on the institution,” the statement said.

The university consequently directed all staff, students, commercial motorcycle operators and other users of electric motorcycles to stop charging their vehicles with the institution’s electricity.

It warned that anyone who violated the directive would face disciplinary action in accordance with the university’s rules and regulations.

“Management expects full compliance with this directive. Any person found violating this ban will be liable to appropriate disciplinary action,” the statement added.

To enforce the ban, the university directed provosts, deans, directors, heads of departments and heads of units to monitor compliance in their respective areas and report any violations to the appropriate authorities.

It also announced that a monitoring team would conduct regular patrols across the campuses to ensure strict adherence to the directive.

The institution urged all affected persons to cooperate with the measure, saying it was part of broader efforts to reduce energy costs and promote the prudent use of university resources.

 

High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

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3 days ago

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August 3, 2026

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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

President Bola Tinubu’s ambitious transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs) is already attracting fresh investments, creating new employment opportunities and laying the foundation for a cleaner, safer and more sustainable transport system, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has said.

Speaking at the 2026 Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA), Mohammed described the Presidential CNG and EV Initiative as a game-changing policy capable of reshaping Nigeria’s automotive and transportation landscape while stimulating industrial growth and youth employment.

The FRSC boss said the initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly those promoting climate action and sustainable transportation, while commending President Bola Tinubu for the bold reforms and for assigning the corps a strategic role in the programme’s implementation.

“This initiative has brought in so many investments. We have assembly plants producing electric vehicles and CNG vehicles, companies manufacturing CNG cylinders and conversion kits, and new technology that is creating opportunities for our youths,” he said.

According to him, the initiative is expected to generate thousands of jobs while positioning Nigeria as a leading destination for green mobility investments in Africa.

“Really, it is a massive investment coming into Nigeria, and it is producing massive jobs for the unemployment challenge we have,” he added.

Mohammed also linked the administration’s transport agenda to ongoing infrastructure projects, including the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway, noting that the projects would improve connectivity and support a safer, more efficient transport network.

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He expressed confidence that the reforms would help Nigeria achieve the United Nations target of providing “a safe, accessible, affordable, reliable and sustainable transport system for all Nigerians by 2030.”

On road safety, the Corps Marshal stressed that reducing road crashes and fatalities requires collective action rather than relying solely on the FRSC.

“Road safety should not be left to the FRSC alone. It is a collective responsibility involving government, communities and every Nigerian,” he said.

While noting that the corps has sustained public enlightenment campaigns for over three decades, Mohammed said greater participation from state governments, local councils, traditional institutions and community leaders is essential to changing road users’ behaviour.

He disclosed that the FRSC has expanded its awareness campaign beyond motor parks to grassroots town hall meetings, enabling the agency to engage drivers, passengers and community stakeholders more directly.

“When you see a bad driving culture, stop the person and caution him. Let him be embarrassed. Road safety is everyone’s responsibility,” he said.

The Corps Marshal expressed concern over persistent traffic violations such as speeding, overloading and the dangerous practice of conveying passengers alongside goods and livestock, warning that such behaviours remain major causes of fatal crashes.

He also urged passengers to challenge reckless drivers, particularly those who exceed speed limits, saying public intervention could save lives.

Mohammed commended NAJA and the media for their sustained support for the FRSC’s road safety campaigns and called for deeper collaboration with journalists to achieve the global target of cutting road traffic crashes, injuries and fatalities by 50 per cent before 2030.

Speaking on the legacy he hopes to leave, the FRSC boss said his priority is to build a technology-driven, people-focused organisation anchored on professionalism, collaboration and excellent service delivery.

“The legacy I want to leave is partnership, collaboration and bringing out the best in FRSC personnel to serve Nigerians and further enhance the image of the corps,” he said.

 

FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

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Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools 

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August 3, 2026

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Students of St. Joseph Senior Secondary School Surulere, Lagos, receiving the books

Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools 

Lanre Shittu Motors is expanding its investment in youth development beyond skills acquisition, launching a major education campaign aimed at steering thousands of Lagos secondary school students away from financial crime through value-based learning and character development.

In partnership with the author of Clean Hands, Bright Future: A Youth Guide to Avoiding Financial Crime in Africa, the foremost automotive company has begun distributing the book to 200 public secondary schools across Lagos State, with more than 150 schools already reached in the first phase of the initiative.

The campaign, which began at Kuramo Senior College and Victoria Island Senior Secondary School, seeks to equip students with a clear understanding of the dangers of fraud, cybercrime, identity theft, examination malpractice and other financial crimes, while promoting integrity, hard work, ethical leadership and responsible citizenship.

Author of the book, Mr. Adedayo Aluko, said the project was inspired by the alarming rise in financial crime among young people and the need to intervene early through education.

“The rate of financial crime among youths is becoming increasingly alarming. We believe education is one of the most effective tools to prevent crime. The message of the book is simple: crime does not pay, and with clean hands, every young person can build a brighter future,” Aluko said.

He explained that the initiative goes beyond book distribution, with plans to return to beneficiary schools for interactive enlightenment sessions and career talks to reinforce the message of integrity.

According to him, the book simplifies over 100 forms of financial crimes, helping students understand offences that many young people unknowingly become involved in. Rich illustrations and practical examples were deliberately included to engage students and make the lessons memorable.

Aluko commended Lanre Shittu Motors for supporting the project, describing the Managing Director of the company, Mr Taiwo Shittu, as a long-standing advocate of youth empowerment and education.

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“Mr. Taiwo Shittu believes there is no shortcut to success. During the flag-off, he personally handed copies of the book to students and encouraged them to embrace hard work, education and skill acquisition as the true pathways to success.

Speaking on the initiative, the LSM MD, Mr. Taiwo Shittu, said the company’s decision to sponsor the distribution reflects its belief that preventing crime begins with shaping values at an early age.

“Young people are the future of our nation. By investing in character development and educating students about the consequences of financial crime, we are helping to build responsible citizens who will contribute positively to society.

“At Lanre Shittu Motors, we believe integrity, education and hard work remain the surest foundations for lasting success,” he said.

Shittu noted that the company’s strong culture of corporate social responsibility was inherited from its founder and his father, the late Alhaji Rasak Olanrewaju Shittu.

He said the late automotive icon instilled in his children and employees the enduring values of compassion, community service and giving back to society, a legacy that continues to shape Lanre Shittu Motors’ investment in education, youth development and other impactful social initiatives.

Published in May 2026 and endorsed by the Chartered Institute of Bankers of Nigeria (CIBN), Clean Hands, Bright Future, has been described as a practical guide for young people navigating increasing social and economic pressures.

The ongoing distribution programme underscores Lanre Shittu Motors’ commitment to corporate social responsibility and its determination to inspire a generation that chooses integrity over shortcuts and honest enterprise over criminality.

Lanre Shittu Motors has over the years maintained a strong record of investing in youth development through skills acquisition and capacity building initiatives.

The company has consistently provided opportunities for young Nigerians to acquire technical and vocational skills in automotive engineering, vehicle maintenance and related fields through internship, apprenticeship and industry training programmes.

It has also supported educational and youth empowerment initiatives aimed at preparing young people for productive careers, reinforcing its belief that equipping youths with employable skills remains one of the most effective ways to reduce unemployment, discourage crime and promote sustainable national development.

 

Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools

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