BY: Victoria Ojeme
ABUJA: Director General, National Automotive Design and Development Council ( NADDC ), Jelani Aliyu on Tuesday disclosed that Nigerians will have the opportunity to purchase vehicles with only 10 percent of the market total price of vehicle.
Aliyu made this disclosure to the media in Abuja he said, giving access to vehicle financing was an important step forwards supporting the capacity of local manufacturers.
Jelani explained that, “in other nations when you want to buy a vehicle, you go, you put down 10% to 15%, you drive off with the vehicle and you pay for it for a number of years at just 6% interest rate, but that is non existence in Nigeria “.
He lamented that ” when you have vehicle financing system with interest rate of about 20 percent, it is high”. Adding that the Council had concluded plans with three indigenous banks to enable access to vehicle financing at low interest rate.
“We have funding , we are going to be working with this, we are talking with three banks, we will soon be rolling out what we call the Automotive Vehicle Finance Scheme”.
Jelani however said the access to the finance will only be provided for vehicles that were manufactured in Nigeria. ” in about a month and half, we will roll out the vehicle finance scheme so that Nigerians will be able to put in maybe 10% or less and drive off with the vehicle and pay over a couple of years at just 6-8 percent interest rate.
” We really think this will improve local capacity for production of vehicles in the country and these finances where for only made in Nigeria vehicles ” he noted.
He said that the country was spending over $8 billion on importation of vehicles and other automotive related products. “That is $8 billion that simply goes out of our economy to purchase 300-400 vehicles per year.
“Most of these vehicles are used so there is a lot of challenges with efficiency, safety , not to talk of zero contribution into our economy”.
The DG said the Council was working to discourage importation and encourage manufacturing as three industrial park were currently being built to alleviate the infrastructural deficit that has also been a barrier to local production in Nigeria.