The Federal Government is considering a vehicle financing scheme that would make it possible for Nigerians to obtain loans at affordable lending rate for the acquisition of locally-produced cars.
The Director-General of the National Automotive Council, NAC, Mr Aminu Jalal, disclosed this during a chat with journalists on the new automotive policy and said the scheme is aimed at encouraging the successful implementation of the new automotive policy.
Jalal said the vehicle financing scheme, with a four year repayment period and an interest rate of ten per cent, would commence before the end of this year.
He noted that federal government was working very hard towards ensuring that access to finance does not affect the implementation of the scheme.
For instance, the DG said that the government is discussing with operators in the financial sector, especially with banks from South Africa.
This, he noted, would not only help to ensure the success of the new policy, but also encourage auto manufacturers to continue to increase the level of their investments in the country.
He said one of the purpose the policy was formulated was to stimulate the economy through industrialization, adding that this was the only viable way to create sustainable jobs for the unemployed youth.
He said: “No nation can develop its economy without industrialization. For us the response to the national automotive policy is quite good and by next year, we will start seeing the difference.
“We are all working towards providing affordable vehicle financing scheme. The system where we have to pay upfront 100 per cent for car acquisition is causing limited uptake of vehicles.
“We are talking with South Africa banks so that we can develop affordable vehicle financing scheme so that these vehicles that have been produced can be bought.
“We are thinking in the region of ten per cent interest rate for the vehicle financing scheme.”
Jalal explained that with the huge interest which the auto policy had received, the first set of made-in-Nigeria vehicles would be produced before the end of this month.
The NAC DG expressed optimism that the vehicles, when produced, would be sold for N1.7m.
