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Fresh Move Against Illegal Auto Sales in Lagos

Victor Ebimomi,
Snr Reporter, Lagos
Sept. '08

Imagine paying a fortune for a vehicle after years of tolling only to be arrested few weeks later by the police and accused of being in possession of a stolen vehicle? This is a common thing in Lagos, nay Nigeria. Several people have fallen victims to the antics of criminals who pass off stolen vehicles as theirs and the innocent buyers only suffer and in some cases end up in prison. This trend, among other nasty experiences in auto dealing, is what the Lagos State Government is now set out to contain.

Towards this end, on Tuesday and Wednesday, the Motor Vehicle Administration Agency (MVAA), a parastatal under the Lagos State Ministry of Transportation, convened a stakeholders' meeting with motor vehicle dealers to brainstorm and in the main to inform the stakeholders of the government's resolve to stamp out unwholesome acts in the sector. Specifically, the stakeholders were informed that the 2004 law providing for registration and regulation of the activities of motor vehicles and motor vehicle spare parts dealers within the state is now to be implemented to the letter.

The implementation, according to the Commissioner for Transportation, Professor Bamidele Badejo, is to ensure adherence to the environmental and safety law of the state. Besides, it is essentially to bring dignity to the trade and protect innocent buyers from falling victims to people with dubious character.

"You will realise that a lot of innocent citizens have found themselves in trouble buying stolen vehicles from unregistered premises and faceless sellers. Such buyers are often left to face the music. This is certainly not good for the consumer or the image of your trade. A lot of stolen vehicles have been discovered through autoreg system; it is the buyer that is arrested and in most cases investigation may be inconclusive, as the seller must have disappeared. We must protect those unsuspecting citizens as well as genuine dealers who are here present," said Badejo in his keynote address at the meeting.

He lamented that today in the state, all sorts of people just wake up and establish auto mart shops indiscriminately regardless of the provision of the law regulating such activities. He warned that the state is now all out to protect the consumers, stressing that another law in that regard is already in the making at the House of Assembly. Individuals who are also in the habit of pasting 'for sale' on their vehicles when they want to dispose them may also run foul of the law.

"Without mincing words, it will become practically impossible for an unregistered auto dealer to operate in the state from now on. It is to be noted also that with this law fully operational, it will become illegal for anybody to personally dispose off vehicles without going through a registered dealer. It will be illegal for anybody to display vehicles on road side for sale as such act runs contrary to the town and physical planning as well as environmental rules," he stated.

Going through registered dealer, he added, will give members of the public willing to buy a car confidence that he or she is buying a problem-free product, as the dealer will be operating under the stipulated law.

The commissioner pointed out that to make registration easy, the MVAA has created 13 zonal offices across the state where interested person could process the registration form and make all necessary enquiries on the processes of opening spare parts shops.

Also speaking at the event, the Permanent Secretary of the MVAA, Mr. Akin Hanson, stated that as from January 2009, the agency would stop issuance of change of ownership on any car except it is certified through registered motor dealer. He disclosed that the agency would have gone on full throttle in enforcing the laws if not for the word of advice of the state's helmsman that the agency should rub minds with the stakeholders.

"We were about to start the implementation of the law immediately but Governor Babatunde Fashola decided that we should talk about this law with motor dealers first," he said.

The law which came into effect on August 18, 2004 stipulates among others, that any person who sells, leases or otherwise deals in motor vehicles shall within 30 days register with the Ministry of Transportation; the operation of motor vehicle business shall be restricted only to areas designated as commercial or industrial layout by the town and country planning enactment in the state; no building in and around any residential area shall be used for carrying on any business relating to motor vehicles as referred to in the law. Punishments for defaulters are also clearly spelt out.

But as is common with Lagos residents, most of the laws are observed in the breach and this has pitched the MVAA with some auto dealers on several occasions, leading to the sealing up of their business premises. At this point, because of the level of violation and its concomitant negative effect on the state master plan, the state government is planning to create an expansive auto market at Mowo on the outskirts of Badagry for dealers.

The dealers have maintained that more than before they are willing to abide by the law guiding their businesses. They have however appealed to the state government that dislodging them from the metropolis would have negative impact on their businesses. They suggested that rather than move them, Mowo should be developed as a special auto centre where auto dealers can converge on a specific day of the week or month to showcase their products.

The governor is said to have given his nod that the law should go into operation fully from January 1, 2009. Some Lagos residents, who reacted to this new addition to the consumers' protection moves of the state government, have hailed it but they cautioned that the law should also spell in clear terms how much a dealer ought to charge an individual wanting to dispose off his vehicle under his dealership to avoid exploitation.

"It is a good thing because truly many people have run into problem because they unknowingly bought stolen vehicles or spare parts. But at the same time it could serve as an opportunity for the dealers to exploit any individual who wants to sell his vehicle. So government should try to specify how much they must charge in that case," said one of them who gave his name as Niyi Joshiah, a company executive, in Apapa.

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May we be strengthened with the ability, willingness and capabilities to be good ambassadors of Nigeria contributing to its uplifting, rather than its detriment. - Cxsm

admin · Site Admin Joined: 25 May 2007 Posts: 5404

Re: Fresh Move Against Illegal Auto Sales in Lagos

Most of it sounds okay, so consumers are protected, but it also opens doors for authorized dealers to exploit auto sellers, who now have to pay commissions they otherwise would have avoided to these middlemen, who would doubly gain on sale when the cars are eventually bought by the consumers.

What needs to be addressed is the verification of a seller's authencity and ownership of the vehicle being offered for sale before the transaction is collected. Even abroad, that's the most that is available and buyers have the option of buying "as-is" but would be wise to confirm that the vehicles are not stolen before purchasing.

Cxsm

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May we be strengthened with the ability, willingness and capabilities to be good ambassadors of Nigeria contributing to its uplifting, rather than its detriment. - Cxsm