The Director-General of the National Automotive Design and Development Council, Jelani Aliyu, reveals that it has signed a partnership with three deposit banks to actualize its vehicle financing scheme.
Speaking in an interview with journalists, the Director-General said that the scheme, an initiative of the National Automotive Industrial Development Plan, would take off in May.
The six-component plan consists of some policy measures designed to position the industry for the creation of jobs, addition of local value and acquisition of technology. These components include: industrial infrastructure, skill development, local content development, standards, market development and investment promotion.
The financing scheme is expected to boost vehicle purchase in the country
While speaking at the event, Jelani disclosed that all plans were in motion to ensure the implementation of the vehicle financing scheme, categorically stating that it would start in the next one month.
According to him, the agency is already in agreement with the three banks that would make the loan available to interested Nigerians who have deposited 10% of the vehicles cost. To ensure that beneficiaries of the loan make the most of it, the three banks giving the loan are offering a single digit interest rate of 8%. In his own words:
We are doing market development and as you are aware, in a number of different 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 per cent or 28 per cent.
So what we doing is that we are already talking to a number of local banks and we are talking with three banks and we will soon be rolling out what we call the automotive vehicle finance where these vehicles that are made in Nigeria would be financed.