Step By Step Guide On How To Obtain A Vehicle Dealership License In Nigeria

The automobile market in Nigeria is vast, and there is enough room for anyone who wants to venture into the car business to make a profit. Just take a state like Lagos for instance, there are so many cars on the road to the extent that there are frequent traffic hold-ups.

Other states like Abuja, Port Harcourt, Ibadan, etc are populated with hundreds of thousands of cars. In fact, some families have more than two cars in their garages.

Despite the present number of cars owned by Nigerians, more people are still seeking to buy new cars. This shows that there is an opportunity for you to make lots of money if you venture into being a car dealer, i.e someone who sells cars.

However, in Nigeria, you don’t just become a car dealer automatically, there are certain things you need to do. One of the most important things you need to do and know before becoming a car dealer is to get your car dealership license. A car dealership license makes you a legal and certified car dealer and makes you qualified to sell cars in Nigeria.

Securing a car dealership license is not so difficult, yet many people are not aware of the process. This article highlights the things you need to know to secure a car dealership license in Nigeria.

Eligibility

Any organization in Nigeria, that intends to involve in the business of Motor Vehicle Dealerships, can apply.

Required Documents

• Completed Dealership form
• Proof of business registration
• Proof of premises registration
• Layout or plan of the premises
• Representation of Safety measures’ configuration on the premises
• Inventory with a description of vehicles
• Copies of share certificates of the company directors and shareholders
• Applicable Proof of Identity of Directors and Shareholders
• Certificate copy for the company’s name
• Profile of the business
• Proof of payment
• Any supporting document (as required)

Fees

Prescribed fees for the license of Auto Dealers is N100000 and for Spare Parts Dealers is N50000.

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Procedure

1. To obtain a Motor Vehicle Dealer General License in person, the applicant has to visit the office of the Board of Internal Revenue.
2. The office locator link for the Board of Internal Revenue can be found below: office locator
3. Visit the office and obtain an application form for obtaining a Motor Vehicle Dealer General License from the relevant department.
4. Make sure that you have all the documents listed in the “Required Documents” section of this page.
5. Complete the application form with the required details and information in respective fields under respective sections.
6. Attach all the required documents with the application form and submit them to the Secretary of the Board.
7. Pay the required amount of fees as directed. Then, the officials will proceed to perform the internal processes with respect to the applicant’s request.
8. Initially, your attached documents and application form will be checked for sufficiency and appropriateness.
9. Then, the Board will verify whether the Dealership site adheres to the relevant requirements and regulations.
10. If found sufficient, further necessary tasks will be accomplished by the concerned officials for the issuance of the license.
11. Once all the tasks and processes are over, the applicant will be intimated to collect the license through any applicable means.