NADDC Has Not Abandoned Auto Finance Scheme- Says DG

By Ebenezer Ishola

Contrary to speculations, the National Automotive Design and Development Council (NADDC) said it remains focused and committed towards the actualization of the Auto Finance Scheme that would make it possible for Nigerians to purchase brand new vehicles with minimal down payment and low interest rate.

This clarification is coming following reports by some mediums alleging that NADDC that has jettisoned the auto finance initiative of helping Nigerians purchase their own vehicles

It would be recalled that NADDC had designed an ownership scheme that would allow Nigerians acquire brand new vehicles with ease, and help reduce high dependency on imported used cars as a result of the high cost of acquiring new ones.

Director General, Jelani Aliyu (MFR), said the scheme allows aspiring vehicles’ owners to obtain soft loans at interest rates considerably lower than existing rates, pointing out a number of partner-banks were already on board the scheme.

Aliyu explained what this means is that more Nigerians will now be able to buy more Nigerian-made vehicles at extremely low interest rates compared to the existing 20% to 28 % interest rates at which banks offer vehicle loans largely for brand new imported vehicles.

“We are doing market development and as you are aware, in a number of countries, when you buy a vehicle, you have to put down 10 or 15 per cent and you drive home with the vehicle for a number of years.

“But that is technically not available in Nigeria. Where you do have vehicle, financing is in the high-interest rate of 20% or 28%,” said Aliyu.

The director general said the NADDC was kick-starting the scheme with several commercial banks as partners to facilitate the vehicle loans scheme to eligible Nigerians once the beneficiary makes an initial deposit of the total cost of the vehicle.

Aliyu said the Automotive Vehicle Finance Scheme is within the framework of the National Automotive Industrial Development Plan (NAIDP) which include a number of policy measures designed to help revitalize the local auto industry with high local content and a feed market supported by a loan scheme that allows high buying ability by auto consumers.

According to him, the expansive value chain also envisages job creation, skill building and technology skill impact for thousands of Nigerians.

Only vehicles manufactured in Nigeria are entitled to benefit from the vehicle loan support scheme.

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