Federal Government’s N1,000 Proof of Ownership Certificate verification fee for motorists is projected to generate around N12 billion annually.

The information was disclosed by the Permanent Secretary of the Lagos Ministry of Transportation, Abdulhafiz Toriola.

The introduction of this certificate aims to ensure vehicle owners and the government can verify the legitimacy of all vehicles registered on the National Vehicle and Identification Scheme database and effectively track car theft and recovery of stolen vehicles.

The Proof of Ownership Certificate will serve as official documentation for a vehicle’s legal ownership, containing essential information such as license plate number, model, year of manufacture, owner’s name, and address.

Toriola announced that Lagos would commence the collection of Proof of Ownership fees from July, while the positions of other states are yet to be known.

The government’s move has garnered mixed reactions, with some criticizing it as a retrogressive and poorly designed tax.

Critics argue that the requirement to annually prove vehicle ownership, despite having a government-issued certificate, adds complexity to the already burdensome multiple tax system, making business operations challenging and diminishing tax morale.

Concerns have also been raised about the timing of the tax implementation, considering the recent removal of fuel subsidies.

In light of these criticisms, some suggest setting the tax aside to maintain order and prevent setting a negative precedent.