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.

…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.