NADDC Urges CBN to Set up Special Fund for Automotive Sector

James Emejo in Abuja

The Director General, National Automotive Design and Development Council (NADDC), Mr. Jelani Aliyu, has said the council is currently in talks with the Central Bank of Nigeria (CBN) for the setting up of a special intervention fund for the automotive industry.

Jelani said the funding support was particularly necessary to consolidate the positive progress recorded in recent times in the industry.

Specifically, he said such intervention by the apex bank would help to put in place a vehicle financing scheme that would enable Nigerians to purchase locally manufactured vehicles without paying the full price at once.

In an interactive session with journalists in Abuja, the NADDC boss said in other parts of the world, new vehicles are purchased under a financing arrangement that helps the buyer to make payments in installments, thereby boosting patronage which will in turn make the industry more viable.

He said part of the discussions centered on achieving single-digit financing for vehicle purchases while the payment is spread over about five years.

Aliyu said some banks had already agreed to the terms and conditions for the proposed financial plan which could be a game-changer in the industry that is struggling for local patronage amidst improvement in production capacity.

He said, “On vehicle financing, we are in talks with banks. We are negotiating terms that will be very conducive for people; single-digit interest rate and we are talking about no more than 10 per cent and being able to pay over at least five years and more.