The Federal Government of Nigeria has announced its intention to generate approximately N12 billion per year through the implementation of a new vehicle tax. Motorists will be required to pay a N1,000 fee for the verification of the Proof of Ownership Certificate. This disclosure was made by Abdulhafiz Toriola, the Permanent Secretary of the Lagos Ministry of Transportation.
The Proof of Ownership Certificate is designed to serve multiple purposes, benefiting both vehicle owners and the government. Its primary objective is to ensure the integrity of all vehicles registered on the National Vehicle and Identification Scheme database, allowing for effective tracking and recovery of stolen vehicles. Toriola emphasized the importance of this initiative, stating, “To this end, the Federal Government has introduced the issuance of an annual Proof of Ownership Certificate for all registered vehicles.”
According to data from the National Bureau of Statistics, Nigeria had approximately 11.76 million vehicles as of the second quarter of 2018, with a vehicle per population ratio of 0.06 for that period. Reports suggest that Nigeria imports around 400,000 vehicles annually. In the first 10 months of 2021, a total of 192,287 vehicles were imported through the Ports & Terminal Multipurpose Limited, as reported by The PUNCH. However, this number decreased in the same period of 2022, with only 114,159 vehicles recorded through the same terminal.
The revenue generated from the new vehicle tax is expected to provide substantial financial resources for the government. The N12 billion annual target will also contribute to funding various developmental projects and essential services across the country.
As the number of vehicles continues to rise in Nigeria, the government aims to enhance regulatory measures and strengthen security within the transportation sector. The implementation of the Proof of Ownership Certificate and associated verification fee seeks to establish a robust system that safeguards against vehicle theft, promotes accountability, and strengthens the national database of registered vehicles.
