The Association of Motor Dealers of Nigeria (AMDON) has decried a new policy to ban the importation of vehicles that are older than five years or below the 2015 model year.
President of AMDON, Prince Ajibola Adedoyin, at a briefing in Abuja on Friday, said the ECOWAS Fuel Grade and Vehicle Emission Standards Regulations will be implemented in Nigerian from January 1, 2021.
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He said the regulation is a decision by ECOWAS Ministers after they considered a report from the ECOWAS consultant, ICCT, noting that the ECOWAS Commission will soon issue a directive to member countries based on the regulation to restrict the importation of passenger vehicles above five years old and heavy-duty vehicles above 10 years.
A citation of the regulation said: “Commencing from January 1, 2021, it will be illegal for Nigerian businesses and consumers to purchase any imported vehicles older than the 2015 model year”.
Adedoyin, however, said: “The implementation of this regulation will have significant negative socio-economic consequences for Nigerian consumers, along with minimal environmental and health benefits.”
The association also berated the ECOWAS ministers for ignoring the take-off date of January 1, 2024, recommended by the consultant at a meeting in Burkina Faso.
Adedoyin said the ECOWAS regulation is contrary to Nigeria’s National Automotive Policy which specifies import of passenger vehicles below 10 years and 15 years for trucks based on affordability and accessibility.
The association also faulted the regulation which states that one can buy a newer vehicle for $297 (about N113,216), clarifying that a newer vehicle sells for $11,065 (about N4.2 million). “This does not include the significantly higher cost in replacing diesel vehicles which are the major source of pollution.”
AMDON noted that the ECOWAS consultant highlighted the gain of the regulation to include earning $107 billion between 2019 and 2050.
“A preliminary independent analysis has determined that the $107bn net benefits presented in the final report is incorrect. The implementation of the ECOWAS regulation will have a net cost of $78.1bn with approximately two-thirds of the net cost impacting Nigeria negatively,” Adedoyin explained.
