Why Nige­ri­ans still pre­fer ‘tokunbo’ ve­hi­cles – Deal­ers

Daily Trust - - BUSINESS - By Fran­cis Arinze Iloani

High Cus­toms duty charged by the Fed­eral Gov­ern­ment on im­ported brand new cars en­cour­ages the im­port of ‘tokunbo’ cars into the coun­try, Daily Trust has learnt.

Speak­ing ex­clu­sively to Daily Trust at the on­go­ing Auto Ex­hi­bi­tion at the Ea­gle’s Square in Abuja, the Ex­ec­u­tive Di­rec­tor of CIG Mo­tors Com­pany Lim­ited, Khadi­jah Ju­naid, lamented that it is part of the rea­sons some Nige­ri­ans buy ‘tokunbo’ or used cars be­cause they are rel­a­tively cheaper.

“For new ve­hi­cles,

the Cus­toms duty that we have to pay, they moved it from 30 per cent to like 70 per cent. Imag­ine the mar­gin! There is no how it will not af­fect the price of the car,” she said.

Lament­ing fur­ther on the prob­lem, she said, “For brand new ve­hi­cles, I can tell you that the Cus­toms duty is killing. If you are bring­ing ‘tokunbo’, the Cus­toms duty is lower and I think the gov­ern­ment should do some­thing about this. They should en­cour­age bring­ing brand new cars into the coun­try as op­posed to tokun­bos.”

She pointed out that used cars come with auto de­faults and auto chal­lenges which the users are not aware of.

Also speak­ing with Daily Trust at the ex­hi­bi­tion venue, a staff of KIA Mo­tors and Dana Mo­tors un­der the ve­hi­cle sec­tion, Bilk­isu Ojeaga, said her com­pany tar­gets “un­com­mon sales” dur­ing the ex­hi­bi­tion.

She re­vealed that all the brands in ex­hi­bi­tion are as­sem­bled in Nige­ria, an in­di­ca­tion that the auto industry in the coun­try is gain­ing a boost.

On lo­cal pro­duc­tion of ve­hi­cles in the coun­try, she said Nige­ria has no steel com­pany that is func­tion­ing well and this must be put in place for lo­cal pro­duc­tion to kick off.

“For pro­duc­tion, it will be dif­fi­cult be­cause we don’t have a still com­pany that is do­ing very well. So it will be dif­fi­cult for Nige­ria to start pro­duc­ing but the best we can do for now is as­sem­bling which we are do­ing al­ready,” she said.

On the af­ford­abil­ity of KIA ve­hi­cles, she said, “all our ve­hi­cles are all af­ford­able. Start­ing from our KIA Pi­canto, it is for N2.277m. You see peo­ple buy­ing tokunbo cars for three point some­thing mil­lion when you can af­ford to buy a brand new car of two point some­thing mil­lion and you will en­joy the car like for five years with­out prob­lem,” she said.

Ex­ec­u­tive Di­rec­tor, Le­gal Ser­vices, Globa­com, Mrs Gladys Tal­abi (left) and Head, Mobile Money Financial Busi­ness, Globa­com, Mr. Esaie Diei (right) pre­sent­ing Mobile Money packs to Bishop of Lagos West Dio­cese, Angli­can Com­mu­nion, Rt. Rev­erend Dr. James Od­edeji at the Glo Xchange stand dur­ing the Arch­bishop Vin­ning Me­mo­rial Cathe­dral’s Har­vest Thanks­giv­ing pro­gramme in IKeja on Sun­day.

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