The House of Representatives is expected to spend an extra N4.3 billion for clearing its 400 exotic cars after rejecting Innoson jeeps locally assembled here in Nigeria.
TheNewsGuru.com (TNG) recalls the House of Reps had during an executive session held on February 5 reportedly passed a resolution for the purchase of 400 Toyota Camry 2020 cars as official vehicles for members.
Each of the cars will cost $35,130, which is equivalent of ₦12,541,410 naira only, meaning that the House will spend a whooping N5 billion to purchase the 2020 Toyota Camry for the members.
Meanwhile, TNG analysis of breakdown of the clearing cost of the N5 billion cars shows that the House will spend an extra N4.3 billion to purchase the cars, making the total cost of purchasing the 400 exotic cars running over N9 billion.
The House will spend N75 million on the cars paying 1.5 percent of N5 billion on insurance. Another N75 million, being 1.5 percent of N5 billion will go down the drain for FOB.
Also, surface duty will gulp N250 million at the rate of 5 percent of N5 billion, while ETLS Levy will take N25 million at the rate of 0.5 percent.
Paying 7.5 percent value added tax (VAT) on 400 cars means another N375 million will follow, and N3.5 billion will go, as well, for import duty at the rate of 70 percent of N5 billion.
Adding the initial cost of the vehicles, which was put at N5 billion to the cost of clearing the 400 cars, means that the House will spend over N9 billion to have the cars delivered.
Recall that Socio-Economic Rights and Accountability Project (SERAP) and 192 concerned Nigerians have dragged the speaker, Femi Gbajabiamila and all members of the House of Representatives to court over purchase of the vehicles.
In the lawsuit filed at the Federal High Court in Abuja, SERAP and other Nigerians are asking the court to restrain the House from spending an estimated N5.04 billion to buy 400 exotic cars for principal officers and members.