FG to Introduce Vehicle Finance Scheme for Nigerians to Own New Cars

By February 10, 2021 NEWS

The Federal Government has announced plans to launch a Vehicle Finance Scheme that would help Nigerians own new cars.

This is part of the 5-point comprehensive programme of the National Automotive Industry Development Plan (NAIDP) which is aimed at promoting local production of vehicles and their parts.

This disclosure was made by the Director-General of the National Automotive Design and Development Council (NADDC), Mr Jelani Aliyu, during an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

Aliyu explained that under the scheme, individuals with a sustainable source of income would be able to acquire their choice car by depositing just 10% of the total cost and then the balance would be paid in monthly instalments within a stipulated number of years.

What the Director-General of National Automotive Design and Development Council is saying

Aliyu during the interview said, “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.

Going further, Aliyu said that the council was working with both local and international companies to set up assembly and production plants in Nigeria, with the agency through its Research and Development (R&D), presently working on a blueprint of 2 brands of vehicles that would be of value to the Nigerian economy.

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

The NADDC boss said, “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 ecosystem 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.

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