In the spirit of transparency, President Muhammadu Buhari has directed all automobile dealers in Nigeria to publish ex-factory price of their vehicles with effect from 2017.
The directive is based on a request forwarded to the President by the Comptroller General of Customs, Col Hammed Ali (rtd).
Ex-factory price is the exact amount a manufacturer charges for the products as they leave the production line. The ex-factory figure is determined solely by the manufacturer. The price does not include taxes, surcharges or shipping and handling fees.
Speaking in a chat with www.citybusinessnews.com on Tuesday, a highly placed source accused auto dealers of allegedly depriving the Federal Government of revenue and frustrating ongoing fight against corruption in the sector.
The source said: “Majority of auto dealers in Nigeria don’t pay the required revenue and taxes. The Government will crack down on them as from 2017”.
Explaining further, the source said: “Why is the ex-factory price not readily available? How come there is no uniform price for same product and quality? In some cases, the difference is as much as 200 or 300 per cent”.
Using one of the dealers in the luxurious segment as example, the source explained that management of the company allegedly conniave with the leadership of agencies and ministries to inflate their price, “thereby defrauding the Government”.
The Source said: “We have a case here. We also believe that the inflated costs which in some cases are more than 300 per cent higher than the market costs are proceeds of corruption. Once we get the ex-factory price as from next year (2017), the Government will confront the dealers especially in the area of Customs levy, taxes and market price.
“We can get the ex-factory price from manufacturers. But, we expect the dealers to provide the information. Any dealer who refuses to comply with the presidential directive will be sanctioned”.
In a related development, importers and owners of imported used vehicles are expected to make available road worthiness certificates from their country of origin.
Security agencies such as the Police and officials of the Federal Road Safety Corps (FRSC) are expected to enforce the directives in 2017.
The NCS had on Monday placed a ban on the importation of vehicles through the nation’s land borders.
