By Olasunkanmi Akoni and Henry Ojelu

Despite critics insistence that proof of ownership certificate (POC) should remain one-off payment at the point of vehicle registration, yearly payment for the document has commenced in Lagos State, Sunday Vanguard learnt last week.

And rather than the N1,000 announced per vehicle per year by the Federal Government, vehicle owners claimed they were being made to pay N1,500.

But Lagos State government insisted that the fee remained at N1,000 even as sources said the extra payment could be as a result of bank charges which they, however, added should not be more than N200.

Lagos, which has about 60 percent of the vehicles in the country on its roads, is designed as the pilot scheme after which it is expected to move to other states.

Sunday Vanguard learnt that cash-strapped government at the three tiers hopes to generate N12 billion yearly from the scheme.
The Nigerian Bar Association Section on Public Interest Law (NBA-SPIDEL), at the weekend, called the POC fee-paying regime unlawful, saying the move will be challenged in court.
·“It is unfortunate that Lagos State has proceeded to implement the unlawful project”, NBA-SPIDEL Chairman, John Aikpokpo-Martins, said in a note sent to Sunday Vanguard.
·On May 9, 2023, after the meeting of the Joint Tax Board (JTB), the Federal Government had announced the introduction of an annual fee of N1, 000 to be paid by vehicle owners in the country for POC verification.
Subsequently, Lagos State government in June announced the commencement of annual renewal of POC for vehicles registered in the state.
The POC serves as valid proof that a vehicle is legally owned by the registered individual or entity which contains vital information such as licensed number plate, model, year of manufacture, in addition to owner’s name and address.
The procedure, officials said, is also to aid in the minimization of car theft and recovery of stolen vehicles, getting vehicular population nation-wide, verification of vehicles documents regardless of issuing state and enhance national security among other benefits.
With the initiative, which is part of Lagos State Transport Sector Reform Bill, 2021, as passed by the state House of Assembly, interstate vehicles can be easily verified and captured in the Lagos database which is key in the success of the Intelligent Transport System.
The Permanent Secretary, Lagos State Ministry of Transportation, Abdulhafiz Toriola, at a press briefing to sensitize the public on the initiative, said the procedure aimed at ensuring real-time tracking and maintaining the integrity of vehicle records on the National Vehicle and Identification Scheme, NVIS, database.
Toriola said the renewal process is part of the government’s commitment to keeping accurate and up-to-date records of vehicle ownership, which is crucial for effective traffic management, law enforcement, and public safety, reiterating that the renewal process would ensure national integration of data. According to him, the document will be issued at the point of renewing vehicle particulars at a minimal fee of ¦ 1, 000 only.
He stressed that by ensuring accurate records and documentation, Lagos State aims to create a safer and more efficient transportation system, urging all to comply with relevant authorities for seamless implementation of the process.
Lagos State Sector Commander of the Federal Road Safety Commission, FRSC, Babatunde Farinloye, on his part, said the implementation is in line with the FRSC Establishment Act of 2007, to regulate and enforce all road safety management procedure through robust database, even as he expressed willingness of the agency to ensure smooth execution of the procedure.
The General Manager, Lagos State Motor Vehicle Administration Agency, MVAA, Mrs. Lape Kilanko, also speaking, stressed that the initiative aligns with the agency’s vision of gathering reliable and accurate database which will aid its operations.
Prince Segun Obayendo, the Group Managing Director of Temply SYC Ltd, stressed the significance of the procedure in addressing the issue of stolen vehicles that are currently untraceable.

Car owners lament
But since the commencement of the initiative, car owners have been lamenting the untold hardship due to the hike in the fee as well as the complexity experienced in the process of issuance.
They complained of multiple increases in vehicle’s particular renewal which include roadworthiness certificate as well as insurance package.
Recall that in December 2021, Lagos State Directorate of Vehicle Inspection Service (DVIS) ordered that roadworthiness certificates would no longer be issued to road users not physically present for the inspection of their vehicles.
Effective from January 1, 2022, the DVIS urged road users to visits test centres in Lagos for the inspection of their vehicles.
“Only vehicles inspected at the Lagos computerised vehicle inspection test centres will be issued roadworthiness certificates”, the DVIS said. “Roadworthiness certificates will no longer be issued by proxy or through third parties. All vehicles must comply with the minimum safety standards to get the certificates”.
Then-Lagos Commissioner for Transportation, Frederic Oladeinde, had told reporters that the new policy was necessary to make the road safe for users.
At the initial stage of the implementation, scores of car owners struggled under scorching sun as they waited for turns to have their vehicles inspected at the Lagos Vehicle Inspection Service (VIS) headquarters at Ojodu.
Over a hundred road users were seen waiting for their vehicles to be inspected when Sunday Vanguard visited the VIS test centre in the Ojudu area of Lagos to observe the process of the physical inspection. Many of them were also seen lamenting the tedious process of the physical inspection of their vehicles.
Proof of ownership palaver
Then the Federal Government triggered controversy by the move to force vehicle owners to renew POC for N1, 000 annually.
The policy immediately elicited opposition by critics who described it as insensitive to the plight of Nigerians without consideration for the harsh economic realities in the country, especially coming amid the removal of petrol subsidy by the Tinubu administration.
The critics accused government of introducing the POC fee as a form of revenue generation.
They called on government to review the policy.
According to them, Nigerians are already over-taxed and adding any extra tax in any form, under any guise, is tantamount to over-kill on the teeming masses
However, there are those who believe that it is within the government’s right to generate revenue for the effective and efficient running of government, but decried the timing.
“Nigerians are still grappling with the fallouts of the fuel subsidy removal policy, and introducing the vehicle proof of ownership renewal at this point in time, is ill-timed”, a car owner, Yemisi Adedeji stated.
Tony Agha, another car owner, expressed concern over the purpose of renewing his vehicle’s proof of ownership having paid at the point of registration.
“What is the purpose of annually renewing the proof of ownership certificate? Does not renewing it mean that I no longer own my car? I understand the need for annual renewal of road worthiness and insurance”, he said.
“But, why should there be an annual renewal for proof of ownership? It seems that our focus is solely on generating revenue without considering how it is being utilised.
“I wonder why government always comes up with policies to over burden the masses, why. What happened to reducing the excessive cost of governance and saving billions of naira?’’
Another Lagos resident claimed that since the inception of the government on May 29, it has not implemented any policy that directly favoured the masses other than over taxing them.
A septuagenarian, Francis Aniagba, also a car owner, lamented the sudden hike in the POC renewal fee from the official N1, 000 to N1, 500 at the point of payment.
“We had suspected it that government will increase the fee”, Aniagba said. “When I went for the renewal of POC, I had to pay N1, 500 without any logical explanation for the hike.
“This is absolutely retrogressive to the masses. Government should reconsider their steps and stop all these anti-peoples’ policies such as this.
“Cost of vehicles is unaffordable, auto spare parts exorbitant, fuel prices on the increase, everything about motoring is unfriendly for the masses.”
Mrs. Olusola Kole, also car owner, corroborated Aniagba, saying, “Recently, when I went for the renewal of POC, I was charged N1, 500 as against the official rate and when I asked the reason for the hike, the official declined to give any explanation. He only directed me to government for answer.
“The system is so corrupt, and no one has come out to explain why this is so. We, innocent citizens, are being exploited always.
“Policemen have started demanding for POC on the road which they have been using to extort innocent motorists.”

Lagos reacts to
hike in POC fee
Reacting to the hike in the fee, Permanent Secretary in the Lagos State Ministry of Transportation, Toriola, debunked it, saying, “I’m not aware of the increase as the state government has not hiked the fee. Those who are claiming so cannot be right, after all.
“The N1, 000 fee stays; if there is any proof by motorists of the hike, they should come to the Ministry of Transportation to complain for necessary action. “Also, no policeman should arrest or impound any vehicle over POC as enforcement has not commenced. “We are still at the preliminary stage to allow maximum number to be captured through aggressive enlightenment, sensitization of the public before we move to the next stage of compliance and enforcement.”
Toriola added that a lot of vehicles have been captured in the state database which he described as “very impressive.” He could not, however, give specific number of vehicles captured so far while promising to make it available as soon as possible.
“We have appreciable number of car owners on our database”, the Permanent Secretary said.
“Ogun, Osun, Oyo and Rivers states among others have same records.
“Any vehicle outside the state of registration can be verified now by other states with central database system. In essence, we now have central database system for seamless operations across the federation. The energy is to the advantage of car owners.”
‘Unlawful project’
NBA-SPIDEL, which opened an inquiry into the POC fee-paying regime, confirmed to Sunday Vanguard, at the weekend, that its team that carried out the assignment has duly submitted a report. “They found the said policy was unlawful and recommended that same be challenged in court”, the group said in their note. “However, we did not proceed to court immediately because the consultants employed by the Joint Tax Board reached out to us for a meeting. We duly had the meeting where we discussed the legality and desirability of the policy thoroughly. The consultants could not convince SPIDEL of the legality and desirability of the policy. The consultants also refused to take our advice to discontinue with the initiative, though they promised to further assess the policy.
“On the 30th of August, 2023, that is, two days ago, NBA-SPIDEL held its annual General Meeting where members were fully briefed on the issue. Members of NBA-SPIDEL at the said meeting unanimously resolved that SPIDEL should approach the court immediately and that we shall certainly do. “It is unfortunate that Lagos State has proceeded to implement the unlawful project.
“Surely, we shall file the already prepared court processes to challenge the illegal, intently voracious, and insensitive policy in the next few days on behalf of the long-suffering people of Nigeria”.