The Minister of Finance & Coordinating Minister of the Economy, Wale Edun has disclosed that Nigeria is the largest importer of vehicles in Africa.

Edun made this revelation in Lagos at the zonal sensitization seminar on the National Vehicle Registry (VREG) held on Friday, 18 th October 2024.

Represented by Hajia Jumai Katagom, Director, PPP Federal Ministry of Finance, Edun said the VREG became necessary due to the absence of a dynamic and centralised platform for national vehicular information, despite Nigeria being the largest importer of vehicles in Africa with an additional 15 million vehicles operational in the country.

?This huge vacuum had sustained the menaces of customs duty evasion, paucity of data for vehicular policy formulation, monitoring and evaluation, nationwide vehicle administration revenue leakages, vehicle theft & vehicle-related crimes, challenges in road traffic regulation enforcement, limited access to credit facilities and, ineffective vehicle insurance coverage, ? he stated.

The high import volume underscores the nation?s significant demand for automobiles, driven by a growing middle class and inadequate local manufacturing capacity.

The minister attributed this trend to Nigeria?s large population and increasing economic activities, making it an attractive market for international automotive brands. Available records show that Nigeria imports over 400,000 vehicles annually.

In the midst of dwindling revenue orchestrated by falling oil prices and mono-economy, further worsened by revenue leakages from unplugged loopholes such as customs duty payment evasion, it became imperative that the Government provided effective responses to these issues.

Consequently, the minister highlighted that the Federal government through the Federal Ministry of Finance, in December 2020, conceived and launched the National Vehicle Registry (VREG) policy, as a means to leverage technology infrastructure to maximise revenue generation, assurance, and realisation in the motor vehicle administration ecosystem in Nigeria.

The National Vehicle Registry (VREG) is a centralised database of all vehicles in Nigeria, using the unique Vehicle Identification Numbers (VIN) to store detailed information on vehicles including specifications, ownership, history, and vehicle administration interaction for the purposes of national planning and revenue aggregation.

VREG is connected to multiple global VIN databases and vehicle history repositories for real-time international interconnectivity and robust curation of vehicular data towards ensuring all vehicles entering into and operational within Nigeria are interconnected to the global vehicular information network for the facilitation of global trade and crime fighting, amongst others.

According to the minister, VREG has achieved technical integration with the majority of the critical stakeholders, including the Nigeria Customs Service (NCS), National Insurance Commission (NAICOM), National Collateral Registry (NCR), and the Motor Vehicle Administration Agency of Lagos state. These connections have ensured the real-time, seamless, and dynamic information interchange towards the optimisation and plugging of revenue leakages associated with vehicle importation, vehicle insurance, and motor vehicle administration.

?Furthermore, the game-changing vehicle analytics provided by the aforementioned interconnectivity is at the fore of the vehicle-related policy decision-making and monitoring mechanisms for revenue recovery, national planning and infrastructural development by the Federal Government today,? he stated.

In furtherance to the accomplishment of VREG?s objectives, some of the critical next steps for VREG include the completion of technical integrations with the Central Motor Registry (CMR) of the Nigeria Police Force (NPF), and the National Vehicle Information System (NVIS) of the Federal Road Safety Commission (FRSC) as well as the strengthening of the collaborative efforts with the National Automotive Design and Development Council (NADDC), and the Joint Tax Board (JTB).

In his goodwill message, the governor of Lagos State Mr. Babajide Sanwo-Olu expressed delight that through the use of VINs, the registry will store comprehensive information on each vehicle, including ownership details, history, and other critical data.

This according to the governor, will not only support government efforts in policy formulation and national planning but also improve vehicle administration and revenue generation for both state and federal authorities.

He acknowledged that the seminar being hosted in Lagos, has brought key stakeholders, especially decision-makers, users, and law enforcement agencies together, to understand the importance of data in the resolution of the issues facing Vehicle administration at large, to have an in-depth understanding of the solution proffered by the Federal Ministry of Finance and thereafter take ownership and implement the solution.

Represented by Lagos State Commissioner for Transportation, Mr. Oluwaseun Osiyemi, Sanwo-Olu noted the Sensitization Seminar on the National Vehicle Registry (VREG) is exceptionally important in today?s context.

He acknowledged that the VREG is a crucial innovation, serving as a centralized database for all vehicles in the country.

He said the integration of VREG with global VIN databases will ensure real-time access to vehicle information, facilitate international trade, bolster national security, and assist in crime prevention. For Lagos State, which has one of the highest vehicular populations in Nigeria, this initiative is especially valuable. It will streamline motor vehicle administration, reduce inefficiencies, and provide a robust framework for managing vehicle-related issues within our state.

Since the launch of VREG in 2021, the program has achieved notable success in reducing customs duty evasion, enhancing motor vehicle efficiency, and curbing revenue leakages.

The benefits of this system, such as optimized data sharing between stakeholders and improved compliance in vehicle importation, are already becoming evident Sanwo-Olu stated.

?We are confident that with continued support, VREG will revolutionize the way vehicles are managed across the country, driving economic growth and development, ? the governor emphasized. (Nigerian Tribune)

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