Nigerian firm sets first car bonded terminal in Kano, no need to visit Cotonou any more!


Posted by: Jane Osuagwu

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The vehicle bonded terminal is the first to be established in the country, to stop the importation of cars through land borders. Read the details now!

A local firm here in Nigeria has embarked on providing an easier car-buying process for a car dealership and ownership in the country by setting up a vehicle bonded terminal in Kano state. This project is said to be the first of its kind in Nigeria-establishing a car bonded terminal.

1. What is a vehicle bonded terminal?

In case you are wondering what a vehicle bonded terminal means, Naijauto will help you out with it.

Below are the definition of a vehicle bonded terminal, according to Investwords,

A terminal that is approved by customs for the temporary storage of imported goods until the custom duties have been paidor the goods have been released. Bonds are required to be posted by the terminal operator in order to indemnify the government if the goods are released improper

However, buyers would be the ones to pay the duty, thus relieving the importer of huge amount of money required to pay collective duty for all imported vehicles as it is the case at conventional ports.


The construction of a car terminal allows much easier car trading activities

2. The very first car bonded terminal of Nigeria will be placed in Kano

The bold step was taken by Habbas Multiventures Limited with respect to the ban placed by the Federal Government in 2017, on the importation of cars via land borders into the country. As a result of the ban, an agreement was made for the establishment of private vehicle bonded terminals to cater to the local demands on tokunbo cars.

The firm's Managing Director, Hamisu Abba Sumaila explained that this project would create about 1000 jobs(direct and indirect) in 12 months’ time and also position Kano as the center of activity for car purchase across northern region and other states in the country.

According to the MD, the terminal would offer a better service and option than what is been offered to Nigerians in the popular Cotonou car market, saying that the terminal provides enabling business environment, space, adequate security for car sellers and buyers, closeness to northern states and 24/7 power supply.

Mr. Sumaila believes that the intervention by his company should discourage Nigerians from engaging in illegal smuggling of cars across borders into the country. He stated that it would provide an environment for legitimate transactions to be carried out, reduce risks, dangers, travel stress and the embarrassment of traveling out of the country just to buy a single vehicle.


The terminal would offer better services to Nigerians than in Cotonou car market

He also pointed out that the initiative offers an economic means for Nigerian citizens living outside the country and wanting to ship cars for sale into the country, to do so.

He said the preliminary research carried out by his company revealed that prior to the car importation via land borders ban, a lot of Northerners have been traveling to the Benin Republic just to purchase vehicles.

According to Mr.Sumaila, there would be talks with tokunbo car dealers and marketers who wish to spread their tentacles to the north, to take advantage of the established vehicle bonded terminal.

The terminal is said to be situated at Judo, Rijiyar Gwangwan District of Dawakin Kudu L.G.A, and Kano state. At present, the car bonded terminal is sitting on four hectares of land and has five hectares reserved in case of expansion.

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Jane Osuagwu
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Jane Osuagwu

Jane Osuagwu

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Jane Osuagwu is an automotive writer at She's a car enthusiast who loves creating educative and informative topics on cars, ranging from maintenance tips to updates on the latest trend in the auto industry in concise and friendly writing. 

Jane is also a blogger and loves reading, inspiring people and getting involved in personal development projects.

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