FG Directs Dealers to Publish Ex-Factory Price of Imported Vehicles

President Muhammadu Buhari has directed all automobile dealers in Nigeria to publish ex-factory price of their vehicles with effect from 2017.

Ex-factory price is the exact amount a manufacturer charges for the products as they leave the production line. The ex-factory figure is solely determined by the manufacturer, and does not include taxes, surcharges or shipping and handling fees.

The directive is based on a request forwarded to the President by the comptroller general, Nigerian Customs Service (NCS), Hammed Ali. The NCS had on Monday placed a ban on the importation of vehicles through the nation’s land borders.

Some industry followers in private and government circles had accused auto dealers of allegedly depriving the Federal Government of revenue and frustrating ongoing fight against corruption in the sector.

A source, who does not want his name in print, 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.”

The source wondered, “why ex-factory price was not readily available and frowned at the lack of price uniformity for same product and quality. In some cases, the difference is as much as 200 or 300 percent”.

Using one of the dealers in the luxurious segment as example, the source explained that management of the company allegedly connive with the leadership of agencies and ministries to inflate their price, “thereby defrauding the government.

“We also believe that the inflated costs which in some cases are more than 300 percent higher than the market costs are proceeds of corruption. Once we get the ex-factory price as from next year (2017), the Federal Government will confront the dealers, especially in the area of Customs levy, taxes and market price.

“Government 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.”

Security agencies such as the Police and officials of the Federal Road Safety Corps (FRSC) are expected to enforce the directives in 2017.

In a related development, importers and owners of imported used vehicles are expected to make available roadworthiness certificates from their country of origin.