Daily Independent (Lagos)

Nigeria: No Licence, No Auto Business in Lagos

By Victor Ebimomi, Snr Reporter, Lagos

16 October 2008


The die is cast! The grace period will terminate on December 31. As from January, the full wrath of the law will be brought to bear on defaulters. This was the message to Motor Vehicle and Auto Spare Parts Dealers Association in Lagos State as the dealership licence was officially launched on Thursday.

Professor Bamidele Badejo, who launched the licence in his official capacity as the Commissioner for Transportation at Adeyemi Bero Auditorium, Alausa, said that within the three months' grace, the government would endeavour to carry out adequate enlightenment campaigns to assist the stakeholders and the general public of the 'sign to come'.

The licence is meant to regulate the business and checkmate illegal outlets with their related criminal activities, which have eroded the public confidence in the mega-buck business and at times have sent some innocent souls to jail. It is the outcome of an enactment by the House of Assembly in 2004, but since then the law has not been fully implemented.

But Badejo affirmed that now that the state government is set for the full enforcement of the law with the launch of the dealership licence, there would be no hiding place for defaulters.

"I want to say here with all sense of modesty that the government will as from January 2009 ensure a total compliance with the provision of the law regulating this all-important business," he said, clarifying that "selling of motor vehicles in mechanic villages, road sides and in unregistered premises will attract the full wrath of the law".

Assuring that the government has enough machinery on the ground to deal with the situation, the commissioner explained that the dealers stand to gain a lot by adhering to the law since a lot of fake people who are causing credibility problems have infiltrated the trade.

His words: "It is to be noted that auto-mobile or spare parts dealership goes beyond display of products for sale to prospective customers; it carries a lot of responsibilities, among which are, ensuring that customers get satisfaction from the product purchased; ensure that the products are not from questionable sources and problem-free as history of such products must be readily available to prospective customers. Details of registration and status must also be made known in case of already registered vehicles. This way, you will restore public confidence and dignity into your business and correct whatever wrong notion the public may have about the people in this multi-billion naira business."

Corroborating this view, Akin Hanson, the Permanent Secretary of Motor Vehicle Administration Agency (MVAA), the body that is officially in charge of issuing the licence, averred that the full implementation of the law would even provide a collective front for original dealers to fight their common enemies that have been smearing their image on the business.

"One beauty of the law is that all stakeholders in the auto business can now jointly fight those who have been bringing this multi-billion naira business into disrepute through their unwholesome business dealings. The government has been doing this all alone by constantly dislodging those who have no identifiable registered business premises. Most people in this group are always on the move. They relocate like the birds, which have no permanent place of abode. Such people are dangerous not only to the auto/auto spare parts dealers, but also to the prospective customers. Their activities have eroded the dignity and public confidence in your business, hence the need to launch this product so that all stakeholders and the general public can be aware of it and invariably support the good intention of the government," he explicated.

The MVAA boss also expressed confidence that a brighter new dawn has come, especially with the conduct and contribution of the stakeholders during previous fora in September to dialogue on the government's intention to kick-start the full implementation of the law.

Beyond auto and auto spare parts dealers, the law also tends to establish the veracity of claims of any individuals who might want to dispose off his vehicles and it also gives subtle cover to the buyer of such vehicle. This works on a tripartite arrangement that will involve the motor owner, the buyer and a licenced auto dealer, who will serve as a link between the buyer and the seller. Anything outside this is considered illegal and violation will lead to denial of necessary documents, such as change of ownership, registration of vehicle, hackney permit and other documents at state licensing offices.

Several stakeholders who attended the launch commended the move, saying it would surely check theft and other criminal practices that have become the order of the day in auto marketing industry.

"It is very good because it will reduce many criminal practices. It will reduce theft and sales of inferior or counterfeit products in the industry," said one of them.

To make obtaining of licence and procurement of information easy, the MVAA has already established 13 zonal offices across the state. The licence for vehicle dealers goes for N50, 000 while that of auto spare parts dealers is N25, 000 -- they are subject to renewal annually. There may however still be some levels of flexibility in the enforceability of this law. This much was revealed by Badejo when he stated that the launch did not foreclose further dialogue.

"Let me quickly allay the fears that the launch of the licences today forecloses further dialogue. Ours is an all-inclusive government and the Governor, Babatunde Raji Fashola (SAN), is ever ready to carry everybody along in the business of governance and you as a group will not be an exemption, particularly now that the government recognises you as a formidable group in the investment future of the state," he assured.

Tagged 'A Law To Provide For Registration And Regulation Of The Activities Of Motor Vehicles And Motor Vehicle Spare Parts Dealers Within The State And For Connected Purposes', the law also regulates the location of auto business outlets and specifies the punishments awaiting defaulters. The enactment, which is numbered Law No. 20 of 2004, was passed on August 18, 2004 by the House of Assembly and assented to by the then governor of the state, Bola Ahmed Tinubu, on September 18, 2004.

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