NADDC plans vehicle financing scheme at single-digit interest rate
National Automotive Design and Development Council (NADDC) has announced plans to float a N200 billion vehicle financing scheme that will allow Nigerians to own made in Nigeria cars at the single-digit interest rate. Alhaji Jelani Aliyu, Director-General of NADDC revealed this in Sokoto while addressing newsmen on efforts of the Council to discourage the importation of used vehicles popularly known as Tokunboh into Nigeria.
Aliyu in his address said, “It is one thing to produce a vehicle and it is another thing to sell it, especially in this 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 officer 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.”
While lamenting the inability of Nigerians to purchase new vehicles as was obtainable in the 70s and 80s, the NADDC boss said the story is about change as plans are on ground to make credit available to intending car owners. He said that just as it happens in other places around the world, people will be able to get new vehicles on credit by putting in 5 or 10 percent of their costs.
He said, “We are hoping to get the necessary approval so that Nigerians can just put down 10 percent and take a brand new vehicle home and you pay the remaining debt over 4, 5, or 6 years.
“We believe this will help Nigerians to buy these vehicles and we have as part of our budget, some money for this.”
To actualize this, Aliyu pointed out that the Council has opened discussions with the Central Bank of Nigeria (CBN), Jaiz, Wema, and Zenith Banks to provide a single-digit auto financing, to assist Nigerians to buy Made-in-Nigeria vehicles.
He said, “We are hoping to get the necessary approval so that Nigerians can just put down 10 percent and take a brand new vehicle home and you pay the remaining debt over 4, 5, or 6 years.
“We believe this will help Nigerians to buy these vehicles and we have as part of our budget, some money for this.”
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