The proceeds of the recently introduced annual fee of N1,000 to be paid by motorists in the country for Proof of Ownership Certificate verification will be shared between the Federal Road Safety Corps, the states, and consultants hired for the exercise, according to Abdulhafiz Toriola, Permanent Secretary, Lagos Ministry of Transportation.
On June 27, Toriola stated that the Proof of Ownership Certificate would assist car owners and the government in ensuring the integrity of all vehicles registered on the National car and Identification Scheme database. He also stated that the effort would aid in the tracing of stolen vehicles.
Toriola responded via text message to our correspondent’s inquiry on how the proceeds of the yearly charge would be handled, writing, “It is to be shared between states, the FRSC, and the consultant.”
“The annual Proof of Ownership Certificate is in accordance with legal requirements fundamental to transparency, security, and accountability within the transportation network,” he stated. To that aim, the Federal Government has mandated that all registered automobiles receive an annual Proof of Ownership Certificate.
“Upon successful completion of the necessary requirements and procedures, this certificate will serve as official documentation of a vehicle’s legal owners.” The POC will include critical information such as the vehicle’s registration details such as number plate, model, and year of manufacture, as well as the owner’s name and address.”
He stated that after critically reviewing the challenges encountered in promoting the safety and security of lives and property through the issuance of the certificate nationally and particularly in the state, the Joint Tax Board resolved in its communiqué issued at the end of the emergency meeting on May 9, 2023, that proof of ownership should be issued to motorists annually nationwide.
He stated that Lagos State would begin collecting the charge in July 2023.
Meanwhile, Dauda Biu, Corps Marshal of the FRSC, disclosed in a recent interview with Sunday PUNCH that 12,018,646 number plates have been created since the new number plates were introduced in 2011. He did, however, indicate that the total number of vehicles properly registered on the electronic system was 6,623,309, excluding state government vehicles.
This means that when the new levy is completely implemented countrywide, the government would make at least N12 billion from it, which is the N1,000 charge multiplied by the entire number of vehicles in the country.