Lagos State government in conjunction with the Federal Road Safety Commission (FRSC) has begun to implement the proof of vehicle ownership initiative recently announced by the federal government.
Lagos becomes the first state to issue the Proof of Ownership Certificate, which has raised concerns that the federal government is desperately seeking to expand the tax net.
The Permanent Secretary, Ministry of Transportation, Engr. Abdulhafiz Toriola, announced the move on Tuesday, in a media briefing at Alausa.
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According to his statement, the newly introduced Proof of Ownership Certificate (POC) does not serve as a replacement for existing vehicle documents like driver’s licenses or roadworthiness certificates. Instead, it aims to establish a comprehensive database of vehicles entering and operating within the state. The primary objectives are to enhance the safety and security of Lagos residents.
Furthermore, he mentioned that this initiative will be extended to other states, allowing for standardized vehicle data collection for both commercial and private vehicles. This data will facilitate easier tracking of vehicles and their owners in the event of any criminal activities.
He also disclosed that individuals can obtain the POC at their nearest licensing office when renewing their vehicle documents. The certificate requires an annual fee of N1000.
“I am pleased to announce the implementation of a new initiative that aims to streamline and enhance the process of vehicle ownership verification which is the annual Proof of Ownership Certificate, in line with compliance with legal requirements fundamental to transparency, security, and accountability within the transportation network,” Toriola said.
He added: “This certificate will serve as official documentation of a vehicle’s legal owners upon successful completion of the necessary requirements and procedures.
“The POC will contain vital information including the vehicle’s registration details such as license number plate, model, year of manufacture in addition to owner’s name and address.”
Highlighting other benefits of the initiative, Toriola said it was adopted in collaboration with the Joint Tax Board as a way to ensure the promotion of safety and security of lives and property given the current rate of crimes committed using vehicles.
He said the initiative also aims “at tracking the real-time status and guarantees the integrity of all vehicles registered on the National Vehicle and Identification Scheme (NVIS) database.”
Although the secretary debunked the insinuation that the initiative is a new avenue the government seeks to expand the nation’s tax net amid dwindling revenue, Nigerians have decried the move, calling it exploitation.
The initiative was announced on the heels of fuel subsidy removal, the floatation of the forex market, and a purported 40% hike in electricity tariff, which have orchestrated a spike in the cost of goods and services.
Some Nigerians who spoke on social media believe there is enough hardship on the plate of the people for the government to impose further levies.
“Nigerian drivers are already required to have a driver’s license & other car documents, there’s no need for a Proof of Ownership Certificate. The N1k being imposed on motorists by the govt. is ridiculous; It seems like little, but the govt. will make millions. This is exploitation,” Daniel Regha said.
Nigerian drivers are already required to have a driver's license & other car documents, there's no need for a Proof of Ownership Certificate. The N1k being imposed on motorists by the govt is ridiculous; It seems like little, but the govt will make millions. This is exploitation.
— Daniel Regha (@DanielRegha) June 27, 2023
“Renewed hope seems to be about continuously taking from the citizens and giving nothing back.
Renewed hope has taken: 500 per liter for fuel
40% increment on power tariffs.
Annual renewal of Proof ownership
VAT payment on diesel
Nothing has been given in this time,” a Twitter user named Eleazar wrote.
Renewed hope seems to be about continuously taking from the citizens and giving nothing back.
Renewed hope has taken:
500 per litre for fuel
40% increment on power tariffs.
Annual renewal of Proof ownership
VAT payment on dieselNothing has been given in this time.
— Eleazar (@eleazar_elc) June 28, 2023
“How is paying for a “Proof Of Ownership Certificate” every year not ridiculous when you have documents showing that the property is yours? It seems they did not know what to name the extortion. Why don’t you increase the minimum wage and improve the standard of living first?”
How is paying for a "Proof Of Ownership Certificate" every year not ridiculous when you have documents showing that the property is yours?
It seems they did not know what to name the extortion. Why don't you increase the minimum wage and improve the standard of living first?
— Sotonye Horsfall ?? (@SotyBrave) June 28, 2023
There are at least 11.8 million vehicles driven on Nigerian roads, according to the latest data from the National Bureau of Statistics. This means that the POC will be a huge revenue source for the government.
The Sector Commander, FRSC, Lagos, who was represented by Tajudeen Mafe, at the briefing assured the government of the agency’s support in ensuring vehicle owners comply with the initiative.
“We would come out to ensure its implementation. It is within our vision to regulate traffic management. The initiative will enhance our national security and for planning. It will also help easy verification of vehicles irrespective of any part of the state a vehicle is coming from,” he said.