Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
Stallion ads
Advertisement
app

Business

FG to introduce Vehicle Finance Scheme for Nigerians to own new cars

The FG has initiated a plan that would help Nigerians own new cars through the Vehicle Finance Scheme.

Published

on

Mr Jelani Aliyu, NADDC repositioning in the automotive industry will help provide millions of jobs for Nigerians

The Federal Government has announced plans to launch a Vehicle Finance Scheme that would help Nigerians own new cars.

This is part of the 5-point comprehensive programme of the National Automotive Industry Development Plan (NAIDP) which is aimed at promoting local production of vehicles and their parts.

This disclosure was made by the Director-General of the National Automotive Design and Development Council (NADDC), Mr Jelani Aliyu, during an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

Aliyu explained that under the scheme, individuals with a sustainable source of income would be able to acquire their choice car by depositing just 10% of the total cost and then the balance would be paid in monthly instalments within a stipulated number of years.

READ: FG hints at low-interest car loan as Honda unveils made-in-Nigeria SUV

What the Director-General of National Automotive Design and Development Council is saying

Aliyu during the interview said, “The NADDC is working on a Vehicle Finance Scheme that will enable Nigerians to easily own and drive these technologically advanced brand new cars. We have reached an advanced stage of discussion with some commercial banks, and as soon as we receive the necessary approvals, we shall deploy the programme.

“We have a worked out proposal in front of our superiors and once they give us that go ahead, we will start the project because we have the money set aside for it. The targeted beneficiaries will be any Nigerian who can prove that they have a sustainable income, whether you work in the civil service, in the private sector or you are doing your own business.

“It will cover all the vehicles produced in Nigeria that have maintenance infrastructure available locally and we hope that the scheme will commence before the end of the second quarter.

READ: Local car manufacturers have now explained why made in Nigeria cars are not selling

Going further, Aliyu said that the council was working with both local and international companies to set up assembly and production plants in Nigeria, with the agency through its Research and Development (R&D), presently working on a blueprint of 2 brands of vehicles that would be of value to the Nigerian economy.

He noted that although the prices of brand new cars were considered high, they offered more comfort and were far cheaper to maintain.

READ: FG commissions Made-in-Nigeria vehicles worth N364 billion

bitcoin train

The NADDC boss said, “We are not the one that will produce these vehicles, but we will work closely with investors and other stakeholders in the sector to ensure that the necessary support is given to them. We are building a comprehensive ecosystem that allows the production of vehicles in Nigeria and thereby creating jobs for our youths.

Binance

“If you buy a new car, you are free from trouble for many years, all you do is to change your engine oil. But when you buy a used vehicle you may have saved initially on the cost, but pretty soon you will be at the mechanic workshop always buying replacement parts.

“The money you did not spend upfront you will spend in the long run, with a lot of stress and unnecessary headache just to keep an old car going.

Jaiz bank ads

READ: Cars45 CEO explains how to increase demand for Made in Nigeria cars

What you should know

  • The Nigerian Automotive Industry Development Plan (NAIDP) provides for incentives which are targeted at creating an environment for existing assembly plants to thrive and attracting new investors in the sector.
  • The 5-point NAIDP programme covered investment promotion, infrastructural development, improvement of standard and skills as well as market development.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

10 Comments

10 Comments

  1. Olufemi Oyedele

    February 10, 2021 at 12:51 pm

    Federal Government should be more concerned about mass public transport. Assisting individuals to own cars will only add to our tranportation challenges. We need to see Transport as a Service (TaaS) and not as a luxury.

  2. Olabode Kehinde Ogunbanjo

    February 10, 2021 at 5:56 pm

    Where is the permanent job in Nigeria? Cause I don’t understand this shit? It same government that will still be after people people picking them up via EFCC and other agencies. This not going to work for Nigerians. As it stands in th FG and most private sectors knows they’re in charge already and know body else. Common job of 30k per month they ask for ladies body, when will this while shit stop?

    • Anonymous

      February 10, 2021 at 11:01 pm

      When is Toyota coming to have an assembly plant in Nigeria.

  3. Anonymous

    February 10, 2021 at 6:03 pm

    First start production in Aladja steel complex and Ajaoka rolling mills.
    Then make cars in Nigeria. If even we are importing knockdown auto parts and we are yet assembling cars of our choice that will help a lot. Don’t put the cat before the horse.

  4. Jime okwishi

    February 10, 2021 at 6:24 pm

    It’s a very gud idea for us civil servant. Some. Of. Us Wil be very happy. How I wish it take place soon. I Wil be first to apply.

  5. Anonymous

    February 10, 2021 at 6:38 pm

    And for the cars to be driven on which road with the dilapidated level of our roads

  6. Anonymous

    February 10, 2021 at 8:23 pm

    A very welcome development coming from a an A-list technocrat.

  7. JT

    February 10, 2021 at 10:49 pm

    What kind of talks are all these, how would this development works, when there’s no Job for the youth?
    At least, they should make a provision for Jobs, no Good road to drive the proposed Cars, as said. I have seen Clearly that Nigerian Government are extremely confused

  8. Capt. David Nwoke

    February 11, 2021 at 5:54 am

    I think it is more important to arrange a better home ownership scheme for Nigerians than for cars. In developed countries home loans run for a minimum period of 36 years and all a person wishing to purchase puts Don as down payment is about 10 percent. Homes have more financial value than cars and we definitely need more affordable homes for Nigerians. The mortgage companies in Nigeria currently run a maximum of 2 years loan terms which requires huge down payments and huge monthly payments.

  9. Bob Ugee

    February 12, 2021 at 1:54 am

    This is a welcomed Development. I will gladly accept this offer when the right time comes. Please, Chike.. ensure to keep us informed.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

SEC denies Oando’s shareholder court victory

SEC has denied ever being served with court processes with respect to the purported matter at the FCT High court.

Published

on

unclaimed dividend, SEC restrains fintech company, Chaka from advertising or offering for sale shares

The Securities and Exchange Commission (SEC) has denied the claim by one of Oando Plc’s shareholders, Engr Patrick Ajudua, that he won a court case against the capital market apex regulator.

SEC disclosed in a statement it issued and seen by Nairametrics on Wednesday that there was never a time it was served with court processes with respect to the purported matter at the FCT High court.

It stated, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to several publications in the media, where it is reported that a shareholder of OandoPlc, purportedly obtained a judgment from the Federal Capital Territory High Court against the Commission.

“The Commission wishes to inform the general public that it was never at any time served with court processes with respect to the purported matter at the FCT High court. The Commission will consequently take all necessary steps to verify and set aside the purported decision of the said Court.”

What you should know

  • On Tuesday, Ajudua, reportedly won a legal suit, which was filed at the High Court of the FCT against SEC, according to Nairametrics.
  • He filed that the directive of the SEC suspending Oando’s Annual General Meeting is in breach of his right to freedom of association as guaranteed under Section 40 of the Nigerian Constitution and Articles 9, 10 & 11 of the African Charter on Human and Peoples Rights.
  • In the said hearing presided over by Honorable Justice O. A Musa, all cases filed were granted in his favor.

Continue Reading

Business

FG urged to sell-off “unproductive” Ajaokuta Steel Plant

The FG has been urged to sell the moribund Ajaokuta steel plant located in Kogi State.

Published

on

Ajaokuta Steel Plant: FG Spends N2bn Salary Every Year on Workers Doing Nothing 

The Federal Government has been urged to sell the moribund Ajaokuta steel plant located in Ajaokuta, Kogi State. The FG was advised to sell the defunct facility to the private sector, which would be more capable to turn the massive structural investment into a profitable venture.

The call was made by the Chairman and Managing Director of Energy Services Limited, Chief Sunny Onuesoke who spoke to newsmen in Warri after visiting the plant last week.

He lamented that no Nigerian would feel good about the country after visiting the $8bn structural investment which has never “produced a single bar of steel since reaching 98% completion as far back as 1994.”

On his visit to the plant, he reported that it was a very emotional experience for him.

“I went there, I cried and asked what exactly is the problem?” he said.

He reflected on the numbers associated with the moribund Ajaokuta steel Plant from its flag off in 1979 to date.

  • 3.9bn was budgeted for the resuscitation of the facility in 2016
  • 4.27bn was budgeted for the same purpose in 2017

Onuesoke said that successive governments have plunged about $8bn into the complex since 1979. He lamented that the FG has been wasting the huge sum of N2 billion for payment of staff salaries every year for doing nothing.

“Why would anyone continue to pump money into an unproductive enterprise? Why do government keep promoting, paying staff salaries, pensioning, and retiring them?

“Why does government spend an appropriation budget on the maintenance of a plant that is not working? How do you maintain a non-commission plant?” Onuesoke queried.

The Ajaokuta steel plant has been in a moribund state for four decades with no concrete plans on the ground for its full resuscitation.

What you should know 

  • Nairametrics earlier reported on the 3 key reasons why the Ajaokuta Steel Plant has remained moribund for more than 4 decades. You can find them here
  • The Ajaokuta steel company was constructed by the Soviet Union in 1979 under a cooperation agreement with Nigeria, the complex reached 98% completion by 1994.

Continue Reading
Advertisement




Advertisement

Nairametrics | Company Earnings