Licensed Custom Agents have put an 80 percent increased as a blamed foreign exchange crisis.
From the news gathered on Tuesday, the agent stated that it was also cheaper to purchase damaged vehicles overseas and fix them in the country than importing newer ones.
Ugochukwu Nnadi, the Vice President of the National Association of Government Approved Freight Forwarders, said Nigerians now opt for buying auctioned damaged vehicles because they are cheaper.
“The volume of imported damaged vehicles is up to 80 per cent. It is cheaper to bring damaged vehicles in; that is the only one they can bring in. The cost of fixing them is cheaper,” Nnadi explained.
Nnadi stressed that the fluctuating forex had made it difficult for importers and their agents to plan properly.
“The issues have been with the forex crisis because you can’t plan or do anything. You would be expecting something; in the end, you would see another thing.
“People are still bringing in consignment because some of them are already in the ports. And you can’t leave it there, because if you leave it there, it means you have abandoned the cargo. So, some of them try as much as they can to clear the ones they can,” he added.
According to Kayode Farinto, a chieftain of the Association of Nigerian Licensed Customs Agents, said imported damaged vehicles are over 75 percent.
“It is because of the purchasing power. You know the dollar is fluctuating and certainly, the purchasing power is declining. The cheapest jeep now is about $18,000 to $20, 000. So, people would now prefer to buy damaged ones and fix them,” he stated.
Remilekun Sikiru, the Youth Leader of the Association of Nigerian Licensed Customs Agents, Tincan Island Chapter, stressed that out of 100 imported vehicles in Nigeria, 90 were damaged.
“Out of 100 vehicles that come into the country, the ones that are badly damaged and couldn’t move is 40 per cent, dented are like 10 per cent, and another 40 per cent are damaged movable vehicles,” he explained.
He linked the increase in the volume of imported damaged vehicles to the weakened naira. “Our shippers know that they can buy them at a cheaper rate over there and fix them here instead of fixing them there because it would be more expensive fixing them there,” he noted
