These are not the best of times for auto dealers in the country, as many are struggling to surviving diversifying, or outrightly abandoning the business.
And the reason for this turn of events is not unrelated to
scarcity of foreign exchange, hike in tariffs, increase in import duty and other related taxes, among others.
Some have now resorted to the buying and refurbishing for sale of Nigeria used vehicles.
According to the President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, the hike in taxes, fuel and tariffs have affected importation of cars into Nigeria.
He said “The implication of this is that there would be safety related issues because most of what is happening now is recycling of Nigerian used cars.
“Importers can no longer bring in cars due to high foreign exchange rate. Apart from exchange rate, there is the increase in import duty, which we have made clear to the government is affecting us negatively and have asked that something be done about it. The hike has had adverse effects on our members because it has chased away some of them away from the business.
“Even when you buy a car and sell it at a profit, you cannot buy another one with the current price we use to import and that is why some people have abandoned the business. The government needs to take urgent steps to address the situation”.
He added “The economy is all about the movement of goods, services and people from one place to another. That is what forms the economy. So, anything that affects transportation affects the economy of the country”.
