Aliyu Seeks CBN Intervention Fund For Automotive Sector

By Linda Ike

The National Automotive Design and Development Council (NADDC) has urged the Central Bank of Nigeria to initiate intervention fund for the automobile sector financing.

The Director -General of the NADDC, Mr Jelani Aliyu, who stated this at a press briefing in Abuja.said this will make it easy for Nigerians to owe made in Nigeria vehicles at an affordable price.

He commended CBN for it’s intervention in key sectors of the economy such as agriculture, power, aviation, health among others, appealing that such gestures should also be extended to the automobile industry.

Aliyu noted that an average Nigerian is finding it difficult to buy a brand new vehicle as they used to do, adding that in other countries, people get new vehicles on credit by putting in five or 10 percent of their costs.

He said the intervention fund from the CBN had become imperative to support the vehicle financing scheme.

NADDC Boss disclosed that the council is in talk with commercial banks to come up with conducive terms for people to acquire made in Nigeria vehicles.

He said, “we are talking about no more than ten percent and being able to pay over at least, five years and more.

“So these are conditions that are typically easy for commercials banks to offer. Single digit rate, because we are looking for collaborative efforts where the government puts in some money and the banks puts in more money.

“There are some specific terms which are hard for the banks but which will make it much easier for Nigerians to afford these vehicles.

Recall that the Federal Government in February, 2022, made plans to launch a Vehicle Finance Scheme that would help Nigerians own new cars.

This will enable NADDC attain it’s goal which is aimed at promoting local production of vehicles and their parts as contained in it’s 5-point comprehensive programme of the National Automotive Industry Development Plan (NAIDP