Prof. Uche Uwaleke, Head, Banking and Finance Department, Nasarawa State University, Keffi, said that the ban on importation of vehicles through land borders would increase smuggling across the borders.
Uwaleke told the News Agency of Nigeria (NAN) in Abuja that the ban would also reduce the number of imported vehicles in the country.
“Given the role used cars play in reducing the cost of transportation in Nigeria, the ban will increase prices of fairly used cars in the country.
“It will also increase transportation cost in the economy already battling with inflationary pressure occasioned in part by high transport costs,’’ he said.
The Federal Government on Dec. 5, 2016, banned the importation of used and new vehicles through the country’s land borders with effect from Jan. 1.
Uwaleke advised the Federal Government to provide appropriate measures at the land borders to address the issue.
He said if the reason for the ban was to check the influx of used vehicles into the country, there should be appropriate control measures without necessarily resorting to outright ban.
Uwaleke said the policy would lead to more ports congestion, increase in smuggling and reduction in the number of imported vehicles.(NAN)
FNO/GOM/IA