DG automotive council says FG set for Vehicle Finance Scheme

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By Joshua Olomu
Abuja, Feb. 9, 2021 Mr Jelani Aliyu, Director General, National Automotive Design and Development Council (NADDC), has announced plans by the Federal Government to launch a Vehicle Finance Scheme that would enable Nigerians own new cars.

He stated this in an interview with newsmen on Tuesday in Abuja.

According to him, the programme is part of the National Automotive Industry Development Plan (NAIDP); a five-point comprehensive programme aimed at promoting local production of vehicles and their parts.

He explained that under the scheme, individuals with sustainable source of income would be able to acquire their choice car by depositing just 10 per cent of the total cost.

He added that thereafter, the balance would be paid in monthly instalments within stipulated number of years.

“The NADDC is working on a Vehicle Finance Scheme that will enable Nigerians to easily own and drive these technologically advanced brand new cars.

“We have reached an advanced stage of discussion with some commercial banks, and as soon as we receive the necessary approvals, we shall deploy the programme.

“We have a worked out proposal in front of our superiors and once they give us that go ahead, we will start the project because we have the money set aside for it.

“The targeted beneficiaries will be any Nigerian who can prove that they have a sustainable income, whether you work in the civil service, in the private sector or you are doing your own business.

“It will cover all the vehicles produced in Nigeria that have maintenance infrastructure available locally and we hope that the scheme will commence before the end of the second quarter,” he said.

Aliyu explained that the NAIDP five-point programme covered investment promotion, infrastructural development, improvement of standard and skills as well as market development.

He added that the council was working with both local and international companies to set up assembly and production plants in Nigeria.

According to him, the council through its Research and Development (R&D) was presently working on a blueprint of two brands of vehicles that would be of value to the Nigerian economy.

He said at the final stage of the blueprint, a functional prototype would be presented in collaboration with stakeholders in the private sector for mass production of the proposed car brand.

The NADDC boss however, noted that although the prices of brand new cars were considered high, they offered more comfort and were far cheaper to maintain.

“We are not the one that will produce these vehicles, but we will work closely with investors and other stakeholders in the sector to ensure that the necessary support is given to them.

“We are building a comprehensive eco system that allows the production of vehicles in Nigeria and thereby creating jobs for our youths.

“If you buy a new car, you are free from trouble for many years, all you do is to change your engine oil.

“But when you buy a used vehicle you may have saved initially on the cost, but pretty soon you will be at the mechanic workshop always buying replacement parts.

“The money you did not spend upfront you will spend in the long run, with a lot of stress and unnecessary headache just to keep an old car going,” he said.

Aliyu explained that because of Federal Government’s commitment to reviving the auto sector, billions of U.S dollars had been invested into the economy, with the setting up of a number of automotive plants.

He noted that Innoson, Dangote Trucks, Honda, Elizade, Peugeot and Hyundai were some of the brands the council was working with.

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