Dealers Spot Errors In ECOWAS Vehicle Emission Standards

…urge Nigeria to withhold assent

Association of Motor Dealers of Nigeria (AMDON) has spotted errors in the proposed Economic Community of West African States (ECOWAS) fuel grade and vehicle emission standards regulations, which is due for implementation on 1st January 2021.

The group in a press conference in Abuja at the weekend urged the Federal Government to withhold its assent to the regulation.

AMDON submitted that “the Federal Government of Nigeria should suspend the implementation of the ECOWAS fuel grade and vehicle emission standards regulation and consult widely with key stakeholders with the aim of reviewing errors in the final ECOWAS report to prevent a major socio-economic pitfall, with its inevitably great consequences.”

Speaking, AMDON National President, Ajibola Adedoyin said “further assessment of the proposed ECOWAS regulations as recommended by ICCT, has revealed many errors and inconsistencies.

“While the ECOWAS consultant submitted in their report that the implementation will result in net benefits to the societies to the value of $107 billion between the period 2019-2050, a preliminary independent analysis has determined that the $107 billion net benefits presented in the final report is incorrect.”

In fact, the implementation of the ECOWAS regulation will have a net cost of $78.1 billion, with approximately two-thirds of the net costs impacting on Nigeria negatively.”

He said while the consultant’s final report assumes the cost of newer vintage vehicles is 297 per automobile based on the incremental cost of improved vehicle emission control system, findings reveal that the estimated cost of purchasing newer vehicles is a whopping $11,065.

This, said Adedoyin, does not include the significantly higher cost of replacing diesel vehicles which are the major source of pollution.

AMDON President said while the report did not consider the huge incremental technology cost and incremental operating cost of implementing the regulations, a preliminary independent study had placed such cost at $106.4billion and $10.7billion respectively.

He noted that the costs will further place a huge burden on Nigeria’s already stressed foreign exchange, stressing at the “regulation has comparably less societal and net benefits as claimed by the ECOWAS consultant.

In his conclusion, he said due to the various other errors being discovered in the recommendations made by ECOWAS’ consultant, AMDON is seriously worried that Nigerian consumers will be confronted with both substantial increases in the cost of automobiles and fuel prices during a time of significant economic uncertainty and recession, if Nigeria government goes ahead with the implementation of the regulation, as proposed.

Adedoyin explained that the ECOWAS Commission will soon issue a directive to member countries on the regulations to restrict the importation of passenger vehicles of not more than five years old and heavy-duty vehicles of not more than 10 years old.

According to him, the implementation of this regulation will have significant negative socio-economic consequences for Nigerian consumers with only minimal and health benefits.

He said the implementation will have an upward swing in the cost of motor vehicles for Nigerians in view of the current state of its economy and sufferings.

He recalled that the regulation is coming when the association has been battling with the Federal Government for a review of the National Automotive Policy which specifies the age limit of imported passengers vehicles of 10 years old from manufacturing date and trucks of 15 years old from manufacturing date.

Adedoyin said the group is against specification because of accessibility and affordability.