More Nigerians are set to own cars, with the Federal Government extending yesterday the age limit of used cars that can be imported from eight to 10 years.This means Customs will earn more revenue from the likely increase in the volume of such cars, otherwise known as Tokunbo (imported used items).

The Federal Government banned importation of cars older than eight years, in 2003, amid wide condemnation.

It was not immediately clear yesterday how this would affect the motor vehicle market, which has been accessible to many, following the introduction of easy payment schemes by banks.

Car dealers said they would like to study the policy before commenting.

The new policy was announced at the presentation of the 2008-2012 Nigeria Customs and Excise Tariff Book at the headquarters of the Federal Ministry of Finance, Abuja. The Comptroller General of Customs, Hammeed Bello Ahmed, also announced the ban on the importation of textiles and articles.

The textiles include Holland, English Wax, Ankara, lace fabrics, wedding gowns and ceremonial apparels as well as used clothes, rugs and carpets.

This ban will, however, not cover some textiles allowed in under the Memorandum of Understanding (MoU) reached between Nigeria and Benin Republic.

The government also banned importation of beer and stout, plastics in the form of cutlery, tooth picks, retreated and used tyres, cases, boxes, cartons made from corrugated materials, foot wears, sports wears and suitcases.

Others on the prohibition list are furniture items of any type, except baby walker and ball pens, including refills.

The Director General of the Budget Office of the Federation, Dr. Bright Okogu, said that the 2008-2012 tariff book is a second attempt by Nigeria to harmonise its tariff regime with the ECOWAS Common External Tariff (CET).

The 2005-2006 Nigeria Customs and Excise Tariff book was released on October 1, 2005. "The 2005-2006 Tariff Book had 60 per cent of its duty harmonised with the ECOWAS CET.

However, realising the weak nature of the ECOWAS CET in providing protection for infant industry, Nigeria proposed a fifth band of 50 per cent duty rate. Thus, unlike the ECOWAS CET, which has four tariff bands of 0%, 5%, 10% and 20% duty rates, the Nigeria 2005-2006 Tariff Book has five Tariff bands, namely 0%, 5%, 10%, 20% and 50% duty rates," Okogun said.

According to him, the features of the 2008-2012 include, amongst others, "Five categories of Customs duty, namely: Category O (0%) for necessities such as most educational materials, etc; Category 1 (5%) for primary raw materials; Category 2 (10%) for intermediate products, e.g. CKD refrigerators, CKD television; Category 3 (20%) for finished goods that are not produced locally and which require no protection, e.g. television, refrigerators, generators, etc; Category 4 (35%) for finished goods that are manufactured locally and which therefore require some protection in the interest of promoting local industries.

With regard to the policy dimension of the new tariff book, Okogun said it was basically aimed at facilitating trade and industrial growth as it is simple and easy to administer.

"It is also hoped that it will lead to improvement in tariff revenue generation in the long run because of better compliance possibilities," he said.

In January 2002, the government banned used vehicles older than five years from being imported. There was a stockpiling of cars and other goods at the various seaports following massive importation.

The government said it wanted to stop the country from being turned into a dumping ground for rickety vehicles.

Earlier, following response pleas by the Nigerian Union of Road Transport Workers (NURTW) the Nigeria Labour Congress, NLC, Car Dealers Association, CDA, government had to reverse its five year-old car policy. Then Environment Minister, Muhammed Saa’d says the ban will curb pollution stating that 75% of air pollution in Nigerian cities is caused by used vehicle emissions and Nigeria had become a dumping ground as vehicles of over 30 years where being brought into the country.

Simialrly, in January 2004, President Olusegun Obasanjo announced an import prohibition of 41 products which included: printed textiles, fabrics, mutton, bottled water, toothpicks, leather shoes furniture, plastics and a host of other items.

The government took the decision to ban the items based on the recommendations from local manufacturer and suppliers who felt that the country could produce them. The local manufacturers had lobbied the government to take the decision in the interest of the economy and to protect the local industry. The manufacturers felt that the ban would go a long way to save millions of local jobs and keep the economy on the path of growth.

To enforce the ban, the Nigerian Customs Service (NCS), announced that they will be raiding the markets to seize the outlawed goods. However, the traders have reacted negatively to this, vowing to resist the threat by the Customs Service

Finance Minister, Dr. Shamsudeen Usman, and the Governor of Central Bank of Nigeria (CBN), Professor Chukwuma Soludo, will tomorrow brief the Senate on the state of the country’s preparedness to withstand the rampaging global financial crisis.


Also to appear before the Senate on Tuesday are the Minister of National Planning, Senator Sanusi Daggash and the Chief Economic Adviser to the President, Dr. Tanimu Yakubu.


The decision to summon the top government officials to brief the Senate was taken following a motion moved by Senator Anthony George Manzo, drawing Senate’s attention to the global financial crisis, which he said had limitless implications for the Nigerian financial sector.


They will all address the Senate at plenary and are expected to provide the details of government’s preparedness for the global financial crisis and give details of how it affects Nigeria. Also related to that is the invitation sent to the Securities and Exchange Commission (SEC) over the meltdown in the securities sector.


Officials of SEC are expected to meet the Senate Committee on Capital Market headed by Senator Ganiyu Solomon. It was gathered that the Committee had sent a letter to the Director General of SEC, Mallam Musa al-Faki, to lead his team to brief the Senate committee at 12 noon.


Faki will answer questions on the continuing meltdown in the securities sector despite the recent government intervention and clarify how the global financial crisis had affected the sector.


The Senate has expressed worries that despite the injection of N1 trillion by the CBN last month, the economy has continued to look fragile, particularly in the banking and the securities sectors.


Senator Manzo, who moved the motion entitled “Global Credit Crisis and its Impact on Nigeria,” which led to the invitation of the top government officials, had given the example of the global cash crunch which has swept through the United States, Europe and some Asian countries.


In adopting the motion, the senators had urged the government to pump more money into the economy by paying all outstanding funds owed local contractors, rebuild the nation’s infrastructure by repatriating a part of the foreign reserves, reduction of interest rates and granting of rebates and reduction of interest rates to the manufacturing sector.


They also called for the expansion of investment in the agriculture sector to aid local food security.