FG imposes ₦1,000 annual fee for Proof of Ownership Certificate on motorists

Ilesanmi AdekanbiJune 28, 2023

3 minutes read

If you own a vehicle in Nigeria, you will soon have to pay a new annual fee of N1,000 as part of the Proof of Ownership Certificate (POC) verification policy. This policy was approved by the federal government through the Joint Tax Board (JTB) and will be implemented by all states starting from July 2023.

The POC verification is a process of confirming the legal ownership of a vehicle and its registration details. It is meant to enhance the security, planning and accountability of the country’s transportation system. It is also in line with the National Road Traffic Regulation 2012 as amended, which mandates the issuance of POC for all registered vehicles.

According to the permanent secretary of Lagos State Ministry of Transportation, Abdulhafiz Toriola, who announced the policy on Tuesday, the POC will contain vital information such as the vehicle’s licence number plate, model, year of manufacture, owner’s name and address. He said that Lagos State will kick-start the collection of POC from motorists in July 2023.

He explained that the POC verification will have several benefits for vehicle owners and the government. Some of these benefits are:

Easy verification of vehicles regardless of the issuing state
Safety and security of vehicles and their owners
Minimisation of car theft and recovery of stolen vehicles
Streamlining of the uniform licensing scheme mandate
Provision of statistics of vehicular population nation-wide
Enhancement of the national vehicle database for national security, planning and economic development

He added that the POC verification policy was adopted by the JTB after an emergency meeting held on 9th May, 2023, following a critical review of the challenges encountered in ensuring promotion of safety and security of lives and property through the issuance of POC nationally.

Mr Toriola said “that the initiative was in accordance with the National Road Traffic Regulation 2012 as amended, No. 101, Vol. 99; Section 73- (1) which states that ‘There shall be Proof of Ownership Certificate for all registered Vehicles’. Section 73- (1-6) also added that ‘The commission shall establish and maintain a Central Data Base for Vehicles and drivers for the federation.”

“To this end, the Federal Government has introduced the issuance of an annual Proof of Ownership Certificate for all registered vehicles. This certificate will serve as official documentation of a vehicle’s legal owners upon successful completion of the necessary requirements and procedures.

“The POC will contain vital information including the vehicle’s registration details, such as, licence number plate, model, year of manufacture in addition to owner’s name and address.

“Having critically reviewed the challenges encountered in ensuring promotion of Safety and Security of lives and property through the issuance of POC nationally and especially in our Dear State, the Joint Tax Board in its communiqué issued at the end of the emergency meeting held on 9th May, 2023 adopted and made a resolution that proof of ownership certificate (PoC) be issued to motorists on an annual basis nationwide,” he said.

The Federal Road Safety Corps (FRSC) representative, Tajudeen Mafe, said that the agency is ready to collaborate with the Lagos State Government and other states towards the implementation of the policy. He said that the implementation is in accordance with the FRSC Establishment Act of 2007, which empowers the agency to regulate and enforce all road safety management procedures through robust databases.

The General Manager, Motor Vehicle Administration Agency (MVAA), Lape Kilanko, who was represented by Olabisi Olowolagba stated that the initiative aligns with the agency’s vision of gathering reliable and accurate databases which will facilitate effective service delivery and revenue generation.

The POC verification policy is expected to take effect from July 2023 across all states in Nigeria. Vehicle owners are advised to comply with the policy and pay their annual fee of N1,000 to avoid any penalties or inconveniences.