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Business News of Wednesday, 30 November 2022


NADDC urges CBN to create intervention fund for automobile sector

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The National Automotive Design and Development Council(NADDC) has urged the Central Bank of Nigeria (CBN) to set up a special intervention fund for the automobile sector.

The council, while commending the apex bank for its intervention in key sectors of the economy, especially in agriculture, power, aviation, and health among others, demanded that such gestures should also be extended to the automobile sector in view of its job-creating potential.

The Director-General of the NADDC, Jelani Aliyu yesterday in a chat with journalists in Abuja, said the intervention fund had become imperative to support the vehicle financing scheme, which is being worked on by the Council.

Recall that in February 2021, the Federal Government announced plans to launch a vehicle finance scheme that would help Nigerians own new cars.

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

The NADDC boss lamented that over time, the average Nigerian is presently unable to buy a brand new vehicle like in the past, adding that in other climes, people get new vehicles on credit by putting in five or 10 per cent of their costs.

“On vehicle financing, we are in talks with banks. We are going after terms that will be very conducive for people. Single-digit interest rate and we are talking about no more than 10 per cent and being able to pay over at least, five years and more.

“So these are conditions that are typically easy for commercial banks to offer. We are looking for collaborative efforts where the government puts in some money and the banks put in more money.

“There are some specific terms, which are hard for the banks but will make it much easier for Nigerians to afford these vehicles.

He also said the National Automotive Industry Development Plan (NAIDP), otherwise called the Nigerian auto policy, has been reviewed in line with global economic realities.