Nigeria Plans Financial Scheme To Support Local Automobile Purchase

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Under Nigeria’s New Automotive Policy, the government is making plans to launch a vehicle financing scheme which will make funds available for Nigerians to buy cars.

“The government is committed to ensuring a conducive environment for Nigerians to own cars assembled in Nigeria and provide opportunity for Banks to Market prospective car owners,” Olusegun Aganga Minister of trade and investment said.

The scheme which will involve the collaboration of both foreign and local banks, in other for Nigerians to access funds at a rate of 10 percent will be launched before the end of this year.

“The reason for the collaboration is to solve the issue of high interest rates charged by Banks,” Agagu Stated.

Nigeria’s automotive policy aims to boost production of locally assembled automobiles within Nigeria and discourage importation of wholly assembled cars.

Under this policy, companies that have made commitments to assembling cars in the country through equipment, acquisition of land and other infrastructure, will have 35 percent tariff on cars while those that insist on importing used cars would pay an additional levy of 37 percent.

“Instead of banning the importation of used cars as other countries operating similar policies do, a tariff of zero has been imposed on Completely Knocked down vehicles since January this year, while semi knocked down will attract 5percent” the minister said.

About 12 Companies including Dana, SCOA, Nissan and Toyota motors have showed their interest to participate in the Scheme.

Nigeria is going to benefit from this policy and collaboration through access to affordable and quality automobiles and employment opportunities.

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