The difficulty to access forex has taken a toll on businesses across the country and the latest association to be hit by the Central Bank’s policies is the second-hand vehicles association in the Country.
The President, Berger Car Dealers Association, Mr. Metche Nnadiekwe has opened up on how the business has been kept on its back foot and that dealers might be made to make painful decisions, such as selling the used cars at a loss to avoid their capital being tied down and so they could leave the business for other lucrative ones.
“Importation of vehicles is no longer profitable. It does not matter whether you are importing from Europe or through the Seme border. The current exchange rate has caused the naira to crash against every major currency.
“You spend so much money importing a vehicle into the country only to pay an additional 35 per cent duty. Who is going to buy the vehicle? As it is, we are unable to increase the prices of our vehicles. Things are so bad that when clients come to buy, they price the cars below the cost price and we are forced to sell at a loss.”
“We implore the Federal Government to do something about the situation. Go round the market, there are empty lots all over. Already, some of us are divesting our stock in order to raise capital for other businesses. If things continue like this till June, we will have a crisis,” he said.
According to Nnadiekwe, no one in the sector is able to smile to the Bank and bring in new cars due to low purchase of second-hand vehicles making it difficult for importers to pay their bank loans and meet up with other requirements for the business.
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