Vin Valuation : Importation Of Used Cars Into Nigeria Dropped By N177.2bn In The First Half Of 2022

Number of used cars imported into Nigeria dropped in the first half of 2022 by N177.2 billion – NBC data revealed.

Data showed that N72.3bn and N96.7bn worth of used vehicles were imported in first and second quarter of 2022.

In comparison, during the same period of 2021, N174.2 billion worth of used cars were imported in Q1 and N172 billion in Q2.

Drop might be connected with the introduction of VIN policy by Customs for proper valuation of imported used vehicles.

Importers had challenged the Nigerian Customs Service over implementation of the VIN Valuation policy.

They noted that the scheme had increased the cost of clearing vehicles at the various ports of the country.

The costs of used vehicles, popularly known as Tokunbo, imported into Nigeria dropped in the first half of 2022 (January to June) by N177.2 billion, according to data released by the National Bureau of Statistics (NBS).

Data from NBS titled ‘Foreign Trade in Goods Statistics’, showed that N72.3 billion and N96.7 billion worth of used vehicles were imported in the first and second quarter of 2022 respectively, which amounted to N169bn.

In comparison, Nigerians spent N346.2 billion to import used vehicles during the same period of 2021, including N174.2 billion worth of used cars in Q1 and N172 billion in Q2.

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Also, in the second half of 2021, N185.4 billion and N85.7 billion were spent on used vehicles in Q3 and Q4 respectively, which amounted to N271.1 billion.

The drop in the cost of used used cars imported into the country might be connected with the introduction of the Vehicle Identification Number (VIN) early this year for proper valuation of imported used vehicles.

Importers and agents, who had challenged the Nigeria Customs Service (NCS) over the implementation of the Vehicle Identification Number (VIN) Valuation policy, noted that the scheme had increased the cost of clearing such vehicles.

But the Federal Government, through the Minister of Finance, Budget and National Planning, Zainab Ahmed, stated that the VIN which is under the National Vehicle Registry (VREG) was to increase revenue, curb smuggling and other criminal activities.

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