Nigeria has unveiled a National Vehicle Registry (VREG). The project is designed to make it easier to track vehicles, reducing car theft in Nigeria while ensuring an inter-agency database on cars in Nigeria. This is a new playbook which among other benefits is designed to generate more revenue for the nation. More so, it could boost the insurance industry vehicle premium revenue. Time to unload on insurance stocks?
Comment by Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning: “Providing the NCS with guidance in all clearing, duties, registration and redistribution of vehicles, targeted at ensuring that all vehicles are trackable, taxable and generate more revenues.
“The integration of the National Insurance Commission (NAICOM) onto VREG for aggregation and regularisation of vehicle insurance across the country.
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“Communication between Central Bank of Nigeria’s (CBN) moveable asset registry and VREG to provide dynamic records of vehicular assets, thus boosting lendability to Nigerians.”
Mr Aliyu Ahmed, Permanent Secretary of the Ministry said: “VREG portal would improve road user safety, enhance vehicle roadworthiness and improve traffic regulation enforcement.
“It will provide users, insurance firms and third parties with car facts and history of vehicles, thus creating a disincentive by ensuring that stolen, accident-wrecked and other unsafe vehicles are no longer brought into the Nigerian market.”
This is a redesign and formalization of the economy begins: all vehicle owners must be ready to pay annual taxes on their movable assets. And Nigeria can pick billions of naira on tax receipts from this.
Yes indeed, the nation needs that money as it needs funds to pay all the monies it has borrowed from the central bank especially in the last few years: “The Federal Government’s total borrowing from the Central Bank of Nigeria through Ways and Means Advances has ballooned to N15.51tn, rising by 2,286 per cent in six years, data collated from the CBN have shown.”
The N15.51tn owed by the Federal Government to the central bank is not part of the country’s total public debt stock, which stood at N33.11tn as of March 2021, according to the Debt Management Office.
The public debt stock comprises the debts of the Federal Government of Nigeria, the 36 state governments and the Federal Capital Territory.
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Deep wahala
They will soon come for your smartphones and laptops, those ones could be taxable soon, with the way they are looking for money. The problem is that after collecting all the new money, they are still wretched and confused.
See how they have abused borrowings from the CBN, and we are wondering what happened to naira and sky high inflation.
In the last few years, people deliberately and ignorantly messed up this economy, but it’s easy to blame everything on price of crude oil and more recently – covid. Nobody ever blamed incompetence and poor judgements.
Vehicle registry indeed, the cows need their own registry too, they are movable assets.