• Tuesday, May 28, 2024
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Anambra tyre importer laments dollar fluctuation, commends SON quality assurance

Anambra tyre importer laments dollar fluctuation, commends SON quality assurance

Anambra State-based motor tyre importer, Vincent Nzeh has lamented the fluctuation of dollar affecting the business, even as he commended the Standard Organisation of Nigeria (SON)’s quality assurance in the business.

Nzeh, director, Vin N. Nzeh and Sons, a subsidiary of VEO, Franc Mark (WA) Ltd., exclusively told BusinessDay that the high cost of getting foreign exchange for importation was adversely affecting the business in the country.

He said that many of them had not imported tyres this year, adding that the tyres currently sold in the Nigerian market were mainly the ones bought last year before the high cost of dollar procurement early this year.

“The current problem of importation in Nigeria is as a result of foreign exchange fluctuation. Today, dollar is cheap, tomorrow, it is high,” Nzeh said.

He said the price of tyres imported last year being sold in the Nigerian market were cheaper than the new ones currently imported, stressing that it had made importation of such goods to drop.

“You buy dollar higher, cleared the goods higher with demurrage. The goods is about N17 million from the foreign company and you pay N3 million for demurrage, totally N20 million.

“When the goods is cleared and brought into the market, you will find it difficult to sell because the ones already in the market is sold cheaper.

“This is affecting us because you have to finish your stock before you thinking of importing new ones,” he said

The dealer on all kinds of motor tyres and tubes of various sizes, noted that the imported tyres is now sold between N60,000 and N100,000, depending on the sizes as against N25,000 and N55,000 before.

He decried also that the foreign companies are cashing in on the dollar fluctuation to milk Nigerian importers.

“The foreign companies are not helping matters. They are interested in their business and making gains.

“If they wait and see you are no longer a regular customer, and also perceived that marketing is affecting you, they go ahead to reduce the prize to willing new customers and shipped goods to them, not minding to find out from their already customer what the problem was.

“This is affecting market because you have to sell the ones you have, and if you don’t sell you cannot make new purchases,” Nzeh said.

The importer appealed to both the Federal and state governments to establish tyre manufacturing industries in Nigeria to create employment opportunities, avenue for export to improve our currency quality and the goods cheaper.

He called on Nigerians to make locally produced goods a family business, which will be improved with time to fetch good money, even in foreign currencies as is done in developed countries.

“We are losing a lot with buying and selling, and marketing foreign companies through importation of their goods,” he affirmed.

Nzeh, however, commended SON for its proactive to ensure quality assurance on the imported tyres brought into the Nigerian markets.

“I am commending SON and the foreign counterparts for the quality and durable tyres currently in Nigerian markets.

“SON does proper examination for any foreign tyre to enter Nigerian market, the quality they give, if you import anything less will be impounded. This is helping to reduce road accidents,” he said

On the use of second-hand tyres popularly called “Tokunbo,” Nzeh, who had been in the business for 35 years with 28 trained boys, said that it was not the cause of the road crashes.

“Tokunbo tyres are not causing road crashes, but the fake tyres, the users know the quality between the imported new and second-hand ones.

“It does not affect increasing road accidents on Nigerian roads; if buyers have the money, there is nobody who do not like the best of things in life.”