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Nairametrics
Home Business News

Nigerians react over imposition of annual vehicle ownership fee by FG

Chike Olisah by Chike Olisah
June 28, 2023
in Business News, Reactions
Customs reduces import duty for used and new vehicles to 20%
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Key Highlights

  • The commencement of the annual collection of levy for Proof of Ownership certificate for vehicles registered within Lagos State is in line with the communiqué issued by the Federal Government Joint Tax Board after an emergency meeting.
  • The payment of the levy will take effect from July 1, 2023, and is for N1,000.
  • Most Nigerians have criticized the levy, viewing it as an additional burden and a form of exploitation by the government

The Lagos State Government had on Tuesday, June 27, announced the commencement of the annual renewal of the Proof of Ownership Certificate for vehicles registered within the state, with effect from July 1, 2023.

This is in line with the communiqué issued by the Federal Government Joint Tax Board, after an emergency meeting held on May 9, 2023.

This was made known by the Permanent Secretary, Lagos State Ministry of Transportation, Abdulhafiz Toriola, at après briefing held at Alausa, to sensitize the public on the initiative.

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Toriola said the procedure is aimed at ensuring real-time tracking and maintaining the integrity of vehicle records on the National Vehicle and Identification Scheme (NVIS) database.

He said the renewal process is part of the government’s commitment to keeping accurate and up-to-date records of vehicle ownership, which is crucial for effective traffic management, law enforcement, and public safety, reiterating that the renewal process will ensure national integration of data.

Certificate to be issued for N1,000

The Permanent Secretary added that the Proof of Ownership Certificate serves as valid proof that a vehicle is legally owned by the registered individual or entity and will contain vital information such as licence plate number, model and year of manufacture, in addition to the owner’s name and address.  He said the document will be issued at the point of renewing vehicle particulars at a minimal fee of One Thousand Naira Only (₦1000).

Speaking further, the Permanent Secretary said the procedure will aid in the minimization of car theft and recovery of stolen vehicles, getting vehicular population nationwide, verification of vehicle documents regardless of issuing State, and enhance national security amongst other benefits.

He stressed that by ensuring accurate records and documentation, Lagos State aims to create a safer and more efficient transportation system, urging all to comply with relevant authorities for seamless implementation of the process.

The decision, among other things, is aimed at tracking the real-time status and the integrity of all vehicles registered on the National Vehicle and Identification Scheme (NVIS) database.

  • Toriola said, “We believe that the POC will help track the real-time status and guarantee the integrity of all vehicles registered on the National Vehicle and Identification Scheme (NVIS) database and it is based on the safety and security it guaranteed that the Governor of Lagos State, Mr. Babajide Sanwo-Olu has approved for its commencement in Lagos State, hence this briefing to enlighten the public.’’

Nigerians react

However, most Nigerians have criticized the levy, viewing it as an additional burden and a form of exploitation by the government. The introduction of the levy comes shortly after Tinubu announced the removal of fuel subsidies without the provision of palliatives for citizens.

The criticism has been widespread on social media platforms, with many questioning the necessity of the levy and accusing President Tinubu of subjecting Nigerians to further hardship, highlighting other issues such as increasing fuel prices and impending electricity tariff hikes.

Here are some of their reactions;

A popular Twitter user NEFERTITI said FG (not Tinubu) has imposed a N1,000 shikiri annual fee to be paid by motorists in Nigeria, for their Proof of Ownership Certificate Verification (POC). she added, ay this N1000 token favour my family.

Another Twitter user by the name preach love asked, What is the purpose of annually renewing the proof of ownership certificate? Does not renewing it mean I no longer own my car?

  • He said, ‘’I understand the need for annual renewal of road worthiness and insurance. But why is there an annual renewal requirement for proof of ownership? It seems that our focus is solely on generating revenue without shedding light on how it is being utilized. Must they always burden the masses with financial obligations to fund their own desires? What happened to reducing the excessive cost of governance and saving billions of naira?’’

He said ‘let the poor breeeevt’ but everything he does is intended to suffocate the poor There has been no implementation from May 29th until now that favors the poor. Every week, new bills are introduced that only cause more suffering for the masses, while they attempt to increase their own salaries.

Also Daniel Regha in his tweet post said that Nigerian drivers are already required to have a driver’s license & other car documents, there’s no need for a Proof of Ownership Certificate. The N1k being imposed on motorists by the government is ridiculous; It seems like little, but the govt will make millions. This is exploitation.

Another Twitter user Chinwemmerii said,

  • ‘’For those who think the “Proof of Ownership Certificate” 1k payment is just cheap & people should not complain. It’s just a strategy by APC to introduce it first with small amount & 4 years from now the price would have reached 20,000 It’s a yearly FINE by APC for not being poor.’’

Nnotum Bright Ikenga in his tweet post said,

  • ‘’Tinubu is generating revenue. Please let’s allow him, after all this government will favour me and my family. But ehn…by the time this mandate is done with Nigeria, we’ll need proof of life not just proof of ownership certificate.’’

A Twitter user, Dan Borno, said that proof of ownership certificate is just the beginning of setting new tax policies that will go straight to one man’s pocket.

Esosa in a tweet post said,

  • ’So those who have a vehicle will be paying 1k tax, Proof of Ownership Certificate. Na small time remain we go soon dey pay tax to waka for Benin road. The Lagos tax system is spreading across. Tinubu ride on, shege just start.’’

Igwe Odyssey said yearly vehicle proof of ownership tax introduced, adding that Asiwaju will soon tax the air that Agbado miscreants breathe.

A former popular actress, Hilda Dokubo, in her tweet post, said,

  • ‘’When we told everyone that this rain will faĺl on all they called us names! Babe, you forgot to add the 1k proof of ownership tax! The shege is on ProMax. Biko, where are my Muslim friends? Let me come and chop meat, ehn this shege will favour me and my family.’’

Rufai Oseno said, ‘’Na wa ooo.1k on certificate of ownership. Na wa OO.God Dey!’’


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Tags: Abdulhafiz ToriolaLagos StateProof of Ownership certificateVehicle ownership fee
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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