Impact of Corona epidemic on the importation of tokunbo cars from Europe to Nigeria

03/23/2020

Posted by: Ikeokwu Chidozie

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The impact of the Corona epidemic on the importation of tokunbo cars from Europe to Nigeria will be hard on businesses and customers.

The automobile industry around the world is facing some uncertainties as the impact of the Corona epidemic continues to spread to different countries. This deadly viral disease first broke out in Wuhan, China, and spread fast to some countries in Asia, including Japan; it has been named COVID-19 by the World Health Organisation (WHO). Automakers have had to innovate to stay afloat during this pandemic. Most recent reports say that the pandemic has gotten to some countries in other continents like America, Africa, and Europe.

Man-in-car-wearing-nose-mask

Coronavirus has impacted countries in the world and in Europe

The economy of many developed countries have suffered huge losses from the situation, and more scarce resources are being channeled toward quarantining individuals, groups or items that start showing symptoms or are suspicious.

The news of Europe being affected will have a serious effect on the import of tokunbo cars to Nigeria. Belgium, Italy, Germany, Spain, France are some of the European countries to experience the most cases of Coronavirus infections where the number of infected people has been recorded in thousands. Italy is especially hit though the automotive industry is still trying to remain active. International business relations from European countries to Nigeria now included serious precautionary measures to prevent transmission of the virus across borders. More challenges are being faced by the shipping companies, as many of the imports from infected countries require thorough health inspections before clearance is given. So what likely are the impacts of the Corona epidemic on the import of tokunbo cars from Europe to Nigeria?

European automobile market and the Corona epidemic

Cases of the Coronavirus have been discovered in some countries in Europe including Austria, Belgium, Britain, Croatia, Denmark, Finland, France, Georgia, Germany, Greece, Italy, North Macedonia, Norway, Romania, Russia, Spain, Sweden, and Switzerland. Many of the countries mentioned with some cases of the virus infection are popular locations where cars are sent from into Nigeria. Car companies like Jaguar Land Rover, SEAT and Skoda as well as many automakers have indicated plans to reduce production in Europe due to the Coronavirus scare. The demand and exports of cars in the European automotive industry are expected to drop drastically, and many of the companies plan to send staff home or have done so already.

Government authorities in Europe have instructed many businesses to shut down and banned gatherings of large numbers of people in their countries. They have canceled some major public and private events, like the Isle of Man TT cancellation,  and shutdown major factories to prevent the continued spread of the virus. The largest car show event which is the Geneva Motor Show got canceled because of the outbreak of the Coronavirus. Car exports from countries with major cases of infection have been going through thorough procedures or face complete suspension.

Border and crowd control within and around Italy have seen a serious approach in a bid to prevent further spread of the Coronavirus. The impact is gradually becoming direct even on the export of tokunbo cars and spare parts to Nigeria; with the increasing expenses and limited supply, car prices will definitely be affected.

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Vehicle inspection and disinfection at the seaport may help

Supply chain of tokunbo cars in the middle of this Coronavirus pandemic

Car production by automakers around the world and in Europe have reduced, so the shipping companies may not have a lot of cars to send to Nigeria. Car and spare parts shipping costs have increased to accommodate the cost of the processes for screening at the borders of both the European countries and Nigeria. The car dealers will surely make these costs influence the final prices of the car for customers; meanwhile, many car dealers and spare parts business people who get their goods from Europe could go out of business. The automotive industry may stabilize after the Coronavirus pandemic is dealt with; until then, the processes and prices of activities and commodities will continue to go up.

Impact of Coronavirus on the Nigerian Automotive Industry

As the situation of the Coronavirus infection continues to escalate around Europe, more challenges are faced by the stakeholders of the automotive industry in Nigeria. Let us not forget that tokunbo cars are also known as foreign used car models; Nigeria will have a serious problem if a car used by an infected customer in Europe is imported. A closer look at this matter should show how the Nigerian Ports Authorities influence the supply process and prices of tokunbo cars coming from Europe, and how the local car market is affected.

>>> Learn more about how the Nigerian automotive industry is affected by the pandemic: How Coronavirus threatens Nigeria's automotive industry

Port-Health-unit-at-work

The import processes at airports and seaports have tightened up

Border control against the Coronavirus for cars imported into Nigeria

Serious planning and preventive measures have been put into action by the government, airports and Nigerian Ports Authorities to prevent cases of importing the deadly Coronavirus into the country. Recently, the FG placed a ban on some high-risk countries. The land borders, seaports, and airports have received instructions to restrict persons, cargo and containers coming into the country from Europe. The vessels and aircraft from countries that have recorded cases of the virus infection have been placed strictly on surveillance to contain any detection of the virus.

Some new regulations have been activated at the seaports, and these include the following;

  • Every vessel from countries with cases of Coronavirus infection coming to Nigeria must inform the unit for Port Health 48 hours before arriving at the seaports; all vessels that fail to comply will be denied access to National water territories.

  • Major agencies are on code red alert like the Nigeria Immigration Service (NIS), Nigeria Customs Service (NCS) and Nigeria Plant Quarantine Services. Every stakeholder at the ports has been sensitized on the COVID-19 outbreak, hygiene, and precautions to help prevent allowing the virus into the country.

  • A quarantine procedure will be followed on persons aboard any vessel from countries that have been affected until they pass the screening done by Port Health units.

The international airports at different states in the country have also been placed under heavy surveillance, so cars that may be sent through cargo will be tested before due clearance.

How the local car market in Nigeria is affected

Car dealers and spare parts marketers in Nigeria are the first stakeholders to feel the business havoc caused by the Coronavirus. The mechanics could feel the heat next since they rely on spare parts to complete car maintenance; they will hike the prices of their services to meet up with the general price increase of commodities in the market within this period of the pandemic crisis. Car owners and passengers will feel the impact fast because the prices of cars, maintenance services, and transportation will rise accordingly.

Watch this video below to see how the Corona epidemic affects car prices in an African country:

Effect of Coronavirus

The economy of the nation is influenced significantly by tokunbo cars, and the restriction on shipping from European countries will affect so many local business activities. This wave of the negative impact of the Coronavirus epidemic on the import of tokunbo cars from Europe to Nigeria may sweep through until it affects the least citizens with the prices of transport services.

We anticipate improvements from the world health experts to help stabilize activities. By the way, how well do you know how to manage the Coronavirus in your car? Stay safe as we work and pray for the best.

>>> Get more in-depth articles about events that shape the Nigeria auto industry, here on Naijauto.com

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Ikeokwu Chidozie

Ikeokwu Chidozie

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Chidozie is an innovative content writer with an academic degree in Mechanical Engineering. He combines his experience in transportation and logistics with creative writing to provide his audience with credible articles on automobiles. Always visit naijauto.com and be guaranteed of expert vehicle reviews, tips, advices and news from this excellent writer.

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