FG earmarks N200bn for vehicle financing scheme
…To begin provision for single-digit interest rate
The Federal Government through the National Automotive Design and Development Council (NADDC) has announced that it has floated a N200 billion vehicle financing scheme.
This is to allow Nigerians own vehicles without necessarily paying for them as it is done in other developed countries.
This was made known on Sunday in Sokoto by the Director-General of NADDC, Alhaji Jelani Aliyu, when he addressed newsmen on efforts of the council to discourage the massive importation of used vehicles into Nigeria.
Aliyu in his address said, “It is one thing to produce a vehicle and it is another thing to sell it, especially in this environment we live in Nigeria.
“We know that the purchasing power of the average Nigerian is very low. Around the world, people have been earning more and more relatively, but in Nigeria, the market forces have made it so that Nigerians actually earn less.”
The NADDC boss lamented that over time, the average Nigerian has become unable to buy a brand new vehicle like they used to do in the 1970s and 1980s, adding that in other places around the world, people get new vehicles on credit by putting in 5 or 10 per cent of their costs.
He said, “Then you take the vehicle home and you pay over a period of 4, 5 or 6 years. In Nigeria, that is basically non-existent and we want to change that.
“If you want a new vehicle, you are expected to put all the money down before you drive it home.
“So, people are unable to buy these new cars.”
Going further, Aliyu pointed out that the council is discussing with the Central Bank of Nigeria (CBN), Jaiz, Wema and Zenith Banks to provide a single-digit auto financing, to assist Nigerians to buy Made-in-Nigeria vehicles.
He said, “We are hoping to get the necessary approval so that Nigerians can just put down 10 per cent and take a brand new vehicle home and you pay the remaining debt over 4, 5 or 6 years.
“We believe this will help Nigerians to buy these vehicles and we have as part of our budget, some money for this.”
