Nine years after the ban on the importation of vehicles through land borders, the Federal Government has been urged to review the policy. A bonded terminal operator, Adetona Mubashiru, called on the government to revisit trade facilitation policies, including the ban on vehicle importation through the Seme Border. He argued that the ban has failed to achieve its intended purpose.
Impact of the Ban
In a statement, Mubashiru alleged that the policy, instead of curbing smuggling or boosting local auto manufacturing, has led to increased inflation, massive revenue losses at authorized entry points, and heightened hardship for Nigerians trying to afford transport. He noted that rather than stopping illegal imports, the ban pushed trade to hundreds of unapproved, porous bush paths.
Revenue Losses and Challenges
According to Mubashiru, the Nigeria Customs Service (NCS) faced immense difficulties policing illegal routes, leading to revenue losses. He stated, “There were severe revenue losses by forcing trade through inefficient and congested seaports like the Lagos ports. The government inadvertently lost billions in accruable import duties to neighboring countries, prompting the demand for reopening key borders like Seme for vehicle transit.”
Mubashiru emphasized that it is expedient for the Federal Government, through the incumbent Comptroller-General of Customs, Dr. Adewale Adeniyi, to revisit the “international trade anomaly.” He noted that his numerous visits to the Seme border elevated the spirit of critical stakeholders, who anticipate a bilateral agreement to lift the ban on vehicle importation through land borders.
Employment and Youth Impact
Mubashiru stressed how vehicle importation through land borders created employment opportunities for many youths, who he alleged are now on the streets causing mayhem. He recalled that youths, including artisans whose vocations connect with vehicles, came to the Seme Border daily for auxiliary jobs and returned home with a full day’s work due to high demand.
“We are talking of panel beaters, rewires, mechanics, painters, drivers and others. Since the ban, these people were also affected because their business and survival exist side by side. These are law-abiding citizens who always support government policies, but this one should be given another look,” he said.
History of the Ban
Mubashiru recalled the presidential directive on the ban, issued on December 5, 2016, with effective implementation on January 1, 2017, captioned ‘FG Bans Importation of Vehicles Through the Land Borders.’ The prohibition order covered all new and used vehicles, restricting all vehicle imports to Nigerian seaports only during the era of Comptroller-General of Customs, Hammed Ali (rtd.).
According to Mubashiru, an elaborate discussion on the emergency order indicated that Col. Ali, represented at a stakeholders’ meeting, promised that the government might reconsider its decision after the successful implementation of a new initiative by the Nigeria Customs Service and the Customs Service of the Republic of Benin to automate and network all electronic information about incoming cargoes through the border.
“It is nine years since this order took effect, but the ban on vehicle importation through land borders failed to solve its intended problems. Instead of curbing smuggling or boosting local auto manufacturing, the policy led to increased inflation, massive revenue losses at authorized entry points, and heightened hardship for Nigerians trying to afford transport,” he concluded.
