Vehicle Importation: VREG Policy Optimisation to Curb Customs Duty Evasion, Thefts, Others
By DAPO OLAWUNI
The Federal Government has reiterated that the National Vehicle Registry (VREG) Policy is set to close revenue leakages linked to vehicle importation and significantly improve motor vehicle administration across Nigeria.
As Nigeria remains Africa’s largest vehicle importer, with over 15 million operational vehicles, the VREG policy is set to address critical issues like customs duty evasion, inadequate data for vehicular policies, vehicle theft, and inefficient insurance coverage, ensuring a more streamlined and accountable vehicle administration system.
Speaking at a sensitization seminar on Friday, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasized the importance of the VREG initiative in tackling critical challenges in the automotive sector.
“The policy will provide real-time vehicle assessment, improve vehicle lifecycle management, and help track stolen vehicles, thus addressing gaps in vehicle administration,” Edun stated in his keynote address.
The seminar, focused on the benefits of VREG, brought together key stakeholders, including decision-makers, vehicle users, law enforcement agencies, and government representatives from Lagos, Ondo, and Ekiti states.
Edun, who was represented by Hajia Jumai Katagum, Director of Public-Private Partnerships (PPP), highlighted that the VREG policy would not only curb customs duty evasion but also provide additional benefits such as easier vehicle trade, improved access to credit, and enhanced insurance coverage.
Katagum called for greater collaboration among stakeholders to ensure the system’s success, stating, “For VREG to achieve its objectives, integration among all relevant sectors is necessary to close existing loopholes in vehicle administration.”
The VREG system, launched in 2021 by the Federal Ministry of Finance, is a centralized database of vehicles in Nigeria that uses Vehicle Identification Numbers (VINs) to store detailed information. It is interconnected with global VIN databases, helping to facilitate international trade and combat vehicle theft.
Gov. Babajide Sanwo-Olu of Lagos, represented by Oluwaseun Osiyemi, Commissioner for Transport, commended the federal government for the initiative, emphasizing the benefits to law enforcement and governance.
“VREG will provide a comprehensive and accurate database for real-time vehicle tracking, which is critical for crime prevention and economic development,” Sanwo-Olu said, underscoring its impact on both local and national levels.
Adewale Adeniyi, Comptroller General of Customs, represented by Deputy Controller Rahmon Akintola, stressed that collaboration between agencies would enhance the success of customs operations. He remarked, “With VREG, the potential for seamless customs operations and improved revenue collection is significant, especially through enhanced collaboration among all stakeholders.”
Alhaji Yusuf Othman, National President of the Nigerian Association of Road Transport Owners (NARTO), which controls 90% of the vehicles used for cargo transportation, urged that the implementation of VREG should not incur additional costs for transporters.
“We support the initiative but request that the government implements VREG at no cost to transporters,” Othman, represented by Mr. Stephen Okafor, appealed.
Mr. Emenike Nwokeoji, President of the Association of Nigeria Customs Licensed Agents (ANLCA), also expressed the association’s support, stating, “No imported vehicle in the country is beyond traceability with VREG, making it a vital tool in the fight against smuggling and illegal vehicle importation.”
Dennis Obeto, Managing Director of Fourcore Technology Solutions Ltd., a private sector partner in the VREG project, detailed the technical aspects of the platform.
In his presentation titled “Optimizing Nigeria’s Vehicular Ecosystem for National Economic Development,” Obeto explained, “VREG is not only transforming vehicle management but is also making Nigeria’s motor vehicle ecosystem safer and more efficient.”