NADDC set aside N7.5bn for affordable vehicle credit acquisition scheme
imageIn its efforts to promote and attract people to made in Nigeria car, the National Automotive Design and Development Council (NADDC) has conclude plan to disbursed N7.5 billion through vehicle credit acquisition scheme.

Explaining the activities of the council to Commerce and Industry Correspondents Association of Nigeria (CICAN) in Lagos, Director Policy & Planing, NADDC, Mr. Luqman Mamudu revealed that the funds will be disburse through a South African bank, West Bank.

According to him, when we think of what we can do to attract more people to made in Nigeria vehicles we discovered that creating credit purchase scheme will be a benefit to our citizens, the automobile industry and economy at large.

“We have been working on it for the past two year, when you look at the asset financing opportunities in Nigeria our banks are not encouraging people, by the time you calculate the charges many people will run away, that is the gap we want to fill now.
We shop around the world for institution that can give avoidable facility for car purchase, we find a company in South Africa called West Bank, we find out that it has foot print in eight African countries delivery credit facility for car purchase scheme.”

Mamudu said the council is planning to build capacities in local assembling to attract component manufacturers to set up their factories in Nigeria in order to boost production.

At NADDC, we are also contributing our own N7.5 billion into the scheme while the South African company ‎will help source for finance from Development Finance Institution (DFI) at single digit interest rate. Our N7.5 billion into the scheme will be interest free, he said.

By the time we put the funds together, it will guarantee an interest rate that is fairly okay. We are in discussion with the Central Bank of Nigeria (CBN) to originate the loans and float it so that it will be attractive for investors to partake in the scheme. Going forward, this will bring down the interest rate. This facility will be given to people that have the capacity to buy cars because we expect that they will have good credit to purchase a car, he added.

He revealed that the council is planning to build capacities in local assembling to attract component manufacturers to set up their factories in Nigeria.

“We are building three laboratories costing about N3 billion in Lagos, Kaduna and Enugu. The one in Lagos is an emission-testing laboratory to test for the level of emission. We are almost 90 per cent complete. We also have a component part manufacturing testing laboratory in Enugu. We are doing all these to prepare for the next stage of component development because this is where job opportunities are enormous, but the entire process requires patience on the side of government and investors,” he stated.