By Danie Efeeloo
Car dealers in Nigeria are now skeptical about the future of their businesses following the recent decision by the federal government on the issue of fuel subsidy removal and the proposed increase in fuel price in 2022.
Recall, that the federal government through the Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed on Tuesday 23rd November during the launch of the World Bank Nigeria development update (NDU) said the federal government will remove fuel subsidy and replace it with N5000 transport grant to poor Nigerians.
The recent development by the government is generating reactions, creating doubts among car dealers against the current state of their business which they described as terminally ill following the outrageous depreciation of naira in the forex market and excess charges on import duties and tarrifs.
Some cross section of car dealers in Port Harcourt who spoke to National Network said the future of the auto business is in grave danger. According to Mr. Chinedu Enedo, car importer with Arburu Motors said if the government further implement the increase in PMS it will call for the collapse of the business couple with the current state of the business.
“Now the increase of prince in import duties has already spoiled the business, now customers find it difficult to buy European used cars due to the price. Now if they increase fuel price or add other charges to what we are paying already, that means the car business will be crippled”.
Also, according to Mr. Okere Chuckwuemeka, the team lead sales with GM Emetus Services said the forex market has made a great change in the market, adding that before now the price of vehicle was fair for consumers to purchase that if from 2005-2007 and there was market growth as people were still going for Belgium cars, now people go to Nigeria used cars which is even more expensive as a result of the inflation in the country, according to him.
The Manager, Saba Tex Motors Alhaji Abubakar Saqiq, expressed mix feeling about the future of the business. He however express optimism about the future hopes of car dealership at same said he is disappointed in the current state of the business.
