N11 billion loan is given to 36 auto companies across Nigeria by NADDC

06/14/2019

Posted by: Jane Osuagwu

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NADDC is set to support the production of made in Nigerian vehicles by giving out a loan worth N11 billion to 36 auto companies in the country. Check how leaders of NADDC share about this program!

The National Automotive Design and Development Council (NADDC) has stated that it has given out a sum total of N11 billion to 36 auto companies.

The figure was disclosed by Mr. Jelani Aliyu, the Director-General NADDC in Abuja, over a meeting held with Katsina State Governor, Alhaji Aminu Masari. Naijauto gathered that the purpose of the meeting was to talk about a proposal for the establishment of an integrated automobile mechanic and auto spare parts village in Katsina state.

1. NADDC loan is to boost the domestic auto industry

This disbursement is one of the ways the council is using to encourage the production of Made in Nigeria vehicles and also to promote the Federal Government's auto policy.The automotive policy was established in 2014 and it comprises of several policy measures that are required to revive the automotive industry so as to create jobs, add value locally and acquisition of technology.

The DG told Governor Masari that 20 companies have been able to pay back the sum of N7.75 billion, out of the N11 billion loaned to them. He pointed out that the aggregate amount that has been repaid was N10.04 billion.

Jelani-Aliyu

Jelani said that NADDC is building 3 automobile service centers to help facilitate the execution of the auto policy

>>> Mechanics will be in great demand in the labor market. Check here! Everything you ever need to know about auto mechanic training schools in Nigeria!

2. New mechanic village to be set up in Katsina

Jelani explained that NADDC is building three automobile service center to help facilitate the execution of the auto policy. He went further to say that the setting up of the mechanic village in Katsina was in accordance with the auto policy to equip Nigerians and enhance locally Made in Nigeria vehicles.

The Katsina State Governor, in a speech delivered by him, said the initiative to set up the mechanic village in the state will reduce the rate of unemployment and boost development. He said it's necessary that the government executes the automotive policy to allow the country to save $8 billion which is being spent annually on the importation of vehicles.

He said, 

"We all appreciate the role of transportation in the economy. In fact, it is the backbone of the economy. It has enough potential.

The problem we have in the sector is that things are not done in an organised manner but if there is regulation, I think a lot of money will be saved

Nigeria is the only country where you can bring in a 50-year-old car and will even be plying the roads. The slightest problem is to cause the loss of lives. Because the vehicles are tired vehicles.

So I think if we enforce the provisions of the law, we can have a certain level of control so that the $8bn we are spending annually (on vehicle importation) would be used to develop the transport sector in Nigeria."

>>> See more car news update on Naijauto news section!

Jane Osuagwu
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Jane Osuagwu

Jane Osuagwu

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Jane Osuagwu is an automotive writer at Naijauto.com. She's a car enthusiast who loves creating educative and informative topics on cars, ranging from maintenance tips to updates on the latest trend in the auto industry in concise and friendly writing. 

Jane is also a blogger and loves reading, inspiring people and getting involved in personal development projects.

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