6% interest loans approved for Nigerians interested in buying Made-In-Nigeria cars

03/30/2019

Posted by: Oluwaseun Solomon

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President Mohammad Buhari has set up a new 6% interest loan federal policy that favours anyone looking to buy Nigerian-made cars. Read the full gist here now!

For a very long time, we had been wishing to see innovations and policies that would encourage Nigerian automakers as well as buyers to patronize made-in-Nigeria autos.

This is why we are really excited here at Naijauto.com about the new 6% loan policy that the President Mohammad Buhari-led administration has set out which is directly targeted at encouraging Nigerians that are interested in purchasing made-in-Nigeria vehicles.

It is said that these new loans will be offered at an interest between 6% to 8% and these loans’ repayment period will be spanned across several years.

Could this be the idea which will finally push made-in-Nigeria cars to the auto market forefront?

We aren’t sure yet the answer to the above question but it is indeed clear that this new measure of the federal government is set out with the main purpose of encouraging fellow Nigerians to buy vehicles made in the country. This is also with no doubt a clear way of boosting investors’ attention and reckon towards local production in Nigeria.

Jelani Aliyu, the current Director General of the Nigerian NADDC (National Automotive Design & Development Council) revealed this target and goals in an interactive session that he had with pressmen recently.

President-Mohammad-Buhari-signing-bill

President Mohammad Buhari and NADDC sets up a new 6% interest loan policy that favours made-in-Nigeria cars purchase

Going by Aliyu’s words, this new loan policy was overly aimed at totally discouraging the importation of vehicles into the country. He added that giving access to favourable vehicle financing, is surely an important step necessary to support the overall capacity of the local auto manufacturers in Nigeria.

Aliyu said;

“In other nations when you want to buy a vehicle, you go, you put down 10% to 15%, you drive off with the vehicle and you pay for it for a number of years at just 6% interest rate, but that is non-existence in Nigeria. “

Aliyu even lamented that;

” When you have vehicle financing system with an interest rate of about 20%, it is high”

And he added that the NADDC had now concluded its plans with 3 indigenous banks to actuate this new policy of vehicle financing to be offered at a much lower interest rate for citizens.

“We have funding, we are going to be working with this, we are talking with three banks, we will soon be rolling out what we call the Automotive Vehicle Finance Scheme”.

Although, Jelani made it clear as well that; access to this new finance scheme will be only provided for cars that are actually manufactured in Nigeria.

Manufacturing-a-car-at-Innoson-Motors

We are yet to hear the voice of all other automakers in Nigeria except Innoson Motors 

When commenting on this point Aliyu gave more emphasis by saying;

” in about a month and a half, we will roll out the vehicle finance scheme so that Nigerians will be able to put in maybe 10% or less and drive off with the vehicle and pay over a couple of years at just 6-8% interest rate.

” We really think this will improve local capacity for production of vehicles in the country and these finances were for only made in Nigeria vehicles.”

Jelani said that Nigeria has been spending roughly over $8 billion (₦2.8 Trillion) on the importation of foreign vehicles as well as other automotive parts and products yearly. His comments were;

“That is $8 billion that simply goes out of our economy to purchase 300-400 vehicles per year.

“Most of these vehicles are used so there is a lot of challenges with efficiency, safety, not to talk of zero contribution into our economy”.

Do you guys believe that 6% interest loans with extended payback period are the way forward in this situation?

We honestly can’t even take sides right now with the NADDC and Nigerian government because it’s one thing for a government to bring out a beautiful new policy and its another thing for them to actually implement it exactly as it was planned.

We only hope that very soon Naijauto will be flooded with brand new and highly affordable Made-in-Nigeria cars from different new indigenous automakers. That’s our big dream!

>>> To see more up-to-date News and reports like this, navigate to our car news, auto-launch, and automotive industry updates.

Oluwaseun Solomon
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Oluwaseun Solomon

Oluwaseun Solomon

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Oluwaseun Solomon is a prolific and diligent automobile writer at Naijauto.com. He's also an experienced digital marketer and a creative multimedia developer that specializes in video editing. He currently contributes informative and easy to read articles on topics covering transportation, traffic updates, auto industry updates, and different car reviews.
When Solomon is not writing, you will either find him composing music, editing videos or simply enjoying YouTube "TEDx Talk" videos with a chilled drink :)

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