FG Sets Aside ₦200 Billion For Vehicle Financing Scheme, Makes Move For Single-Digit Interest Rate

The federal government of Nigeria is embarking on an exciting project which will not only be of great benefit to Nigerians but to the government as well. 

This project is a financing scheme that has been set off through the National Automotive Design and Development Council (NADDC) to disburse over ₦200 billion to help Nigerians purchase vehicles.

This is indeed a step in the right direction for people who need cars but with a limited budget to buy one. It’s an introduction to a car loaning scheme practised in developed countries. Now, Nigerians who follow the necessary process can afford cars with a government loan while they pay interest with a single-digit interest rate.

This information was made known on Sunday in Sokoto by the Director-General of NADDC, Alhaji Jelani Aliyu while addressing reporters on efforts of the council to discourage and reduce the massive importation of used vehicles into Nigeria. 

In the interview, he notes, “It’s one thing to produce a vehicle, and it is another thing to sell it, especially in the 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 earn less. 

“What an average worker, at a particular grade level, let’s say in a Ministry in 1975, could buy with his salary, that same office Sr now is unable to do that.

“This is because of inflation and what happened to our economy, as global market forces determine the prices of vehicles, just like crude oil, gold, and diamonds.”

The NADDC director laments how overtime 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 using credits by putting in only 5 to 10 per cent of the initial cost while taking it home and paying for 4-6 years. 

He notes that it’s nonexistent in Nigeria as it’s either cash buying new cars or going for used cars. And that’s what the federal government is pushing for, to create more access for car lovers to own their preferred cars. 

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The NADDC boss also highlighted that going. Further, the council is in discussion with the Central Bank of Nigeria (CBN), Jaiz, Wema, and Zenith Banks to provide single-digit auto financing to assist Nigerians in buying Made-in-Nigeria vehicles. 

He explains this further, saying, “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 4-6 years. 

“We believe this will help Nigerians to buy these vehicles, and we have, as part of our budget, some money for this.”

This vehicle financing scheme by NADDC is part of the 5-point comprehensive program of the National Automotive Industry Development Plan (NAIDP), which promotes the local production of vehicles and their parts.