NADDC boss announced 6% interest vehicle loans to Nigerians

05/10/2019

Posted by: Jane Osuagwu

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Do you aspire to own a car but don't have the finance? Then you might just be on your way to acquiring your own car soonest. Read the details now!

The Federal Government of Nigeria will soon launch a new ownership programmer that will give Nigerians the opportunity to own vehicles with ease.

As stated by the National Automotive Design and Development Council (NADDC), this project will allow citizens who desire to have a car of their own but not financially capable, to get soft loans from banks that will be in partnership with the project.

According to what NADDC said in Abuja: "The federal government will roll out “the much-awaited Automotive Vehicle Finance Scheme before the end of June."

The federal government parastatal said it will go into partnership with three selected commercial banks on the project. The vehicle loan will be available to eligible citizens, after they must have made a 10% initial deposit of what their desired vehicle costs at a 6% interest rate.

The new vehicle scheme was announced by Mr. Jelani Aliya, the Director General of NADDC, while he was inspecting the new Honda CR-V assembled in Nigeria at the council's headquarters in Abuja.

Boss-of-NADDC-Nigeria

Boss of NADDC made the announcement when inspecting the Honda CR-V assembled in Nigeria

According to Mr. Aliyu, the program will be executed under the National Automotive Industrial Development Plan (NAIDP).

The DG said "NAIDP contains a number of policy measures needed to revitalise the industry for local value addition, job creation, and technology acquisition."

He went ahead to make some clarifications regarding the scheme, saying that it covers only cars made in Nigeria and that with the low-interest rate, Nigeria's large populace will be able to have their desired cars, while paying for it in some years’ time. We at Naijauto believe this new development is a welcomed one, which will support made in Nigeria cars.

>>> In fact, this news has been reported roughly in March by President Buhari: 6% interest loans approved for Nigerians interested in buying Made-In-Nigeria cars

nigerian-bank

The NADDC boss urged residents to invest more in Made-in-Nigeria cars with the new scheme

Mr. Aliyu also raised concerns over the country's spending on vehicle importation and other automotive products which stood at $8 billion, saying that the figure only leaves the economy to buy 300-400 used cars annually, which have issues with their safety, efficiency and having nothing to contribute to the economy.

The NADDC boss also has this to say.

We are doing market development and as you are aware, in a number of 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,

As he said, it was the reason the federal government came up with the programmer to make the acquisition of cars among Nigerians easier.

>>> Other news updates can be checked out in our news section on Naijauto.com!

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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