NADDC: Auto credit scheme will increase production of Nigerian-made vehicles

Joseph Osanipin, director general (DG) of the National Automotive Design and Development Council (NADDC), says the federal government’s auto credit scheme will increase the production of Nigerian-made vehicles.

Osanipin spoke in an interview with the News Agency of Nigeria (NAN) on Sunday.

On May 14, the federal government announced plans to launch an auto-credit scheme to boost the local automobile industry.

The government said the scheme aims to ease the acquisition of locally manufactured goods by Nigerians.

Osanipin said the credit scheme, which would be provided at a favourable interest rate, would stimulate growth, help the sector flourish, and significantly contribute to the economy.

“The ministry of industry, trade and investment through the presidency is putting together a credit scheme to encourage those people who want to patronise only locally manufactured/assembled vehicles,” Osanipin said.

“So the credit scheme will not be for those people who want to go and bring their vehicles from abroad, but for locally manufactured ones.”

The DG said under President Bola Tinubu’s administration, the council has provided essential financial support to assembly plants throughout Nigeria.

He said despite this support, some assembly plants encounter difficulties like operating below capacity or ceasing production.

Acknowledging these issues, Osanipin said Tinubu’s directive would guarantee consistent production.

Also, the DG said affordability was a central focus of the government’s automotive policy, adding that locally assembled new vehicles are priced competitively with imported ones.

He said the availability of assembled vehicles was another key issue being addressed.

“New vehicles, the ones we assemble in Nigeria are competitive in terms of price and can go head to head with new ones that are coming from outside the country,” he said.

“Let us say utility vehicle (pickup), if you look at the price of some pickup vans assembled in Nigeria, (they) are about 60 percent of the price of those ones that are coming from outside.

“Some are 70 percent, some are 80 percent based on the type of the pickup vans, so, in terms of price, they can compete with new vehicles.”

Doris Uzoka-Anite, minister for industry, trade, and investment, on May 14, said the federal government is working to transform Nigeria from being an assembling nation to a manufacturing country.