The government of Benin Republic has further slashed the duties payable on transit goods in a bid to attract more patronage from Nigerian importers.
Apparently, the tiny West African neighbouring country was targeting Nigeria-bound cargo, especially vehicles, which account for more than 75 per cent of transit goods in the port.
As a result of the friendly tariff, more Nigerians now prefer to land their motorised cargo at the port before they are smuggled into Nigeria.
This is despite the Nigerian government’s ban on importation of vehicles through land border as the volume of cars smuggled into the country from Cotonou through Seme, Idiroko and other land borders has risen astronomically in the past four months.
Findings revealed that the government of Benin Republic in June approved the reduction of charges on transit vehicles by 27 per cent. The new price regime took effect in July 1st, 2017.
This has therefore led to an astronomical increase of Nigeria-bound vehicles leaving the port on daily basis.
While the importation of cars in Cotonou reached an all-time low of just 3,500 units in January 2017, the volume of cars discharged there last month was well over 10,000 units, according to findings from the Autonomous Port of Cotonou.
“From all indications, this figure is going to grow in the months ahead, as the Naira has rebound against the CFA and more and more traders are patronizing the port of Cotonou,” a senior staff of a shipping line calling at the port of Cotonou declared.
“The trend we are seeing is that the old and crashed vehicles, which are paying comparatively low level of duties, are discharged in Lagos while the newer and more expensive second hand cars are discharged in Cotonou,” the source added.
It was also gathered that as a way to attract more Nigerian-bound vehicles to the country, the Benin Republic Ministry of Transport has approved the reduction of the amount charged for the vehicles in transit.
As a result of this reduction, the price to clear a car discharged in Cotonou in transit to Nigeria was slashed from CFA399,920 (N257,000) to CFA290,000 (N186,000) with effect from July 1, 2017.
“We expect that this reduction in prices in Cotonou will divert even more vehicles to Benin Republic, while the volumes in Lagos will remain stagnant,” another importer who frequents the port of Cotonou noted.
However, Nigeria’s tariff on imported vehicles arguably remains the highest in the world at 35 per cent import duty and another 35 per cent surcharge, totalling 70 per cent.
This unfriendly tariff has discouraged importers of vehicles from using the Nigerian Ports but rather prefer the more business-friendly autonomous port of Cotonou which charges competitive prices.
These vehicles are daily smuggled into the country despite the total ban of such activity at the borders.
However, the heavily compromised customs officers manning these porous border posts look the other way while the smuggled vehicles are brought into the country in convoy.
Few but unlucky ones that were intercepted are routinely make a public spectacle to give an impression to the Customs High Command and the Government of stringent enforcement of the ban order.
