FG Releases N20bn for Nigerians Buy Brand New Cars as Cost of Innoson, Other Local Vehicles Emerges

• Stakeholders in the auto industry have said the proposed N20 billion under the credit corp scheme for locally-assembled cars is too little
• They disclosed that the amount could only purchase less than 600 vehicles and not enough to stimulate the local auto industry
• The Nigerian Credit Corporation (CreditCorp) launched the initiative in partnership with the National Automotive Design and Development Council

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Mixed reactions have been expressed to the proposed N20 billion consumer credit fund to stimulate demand for locally made new vehicles.

Stakeholders in the auto industry say the finance scheme came a bit too late, considering decades of neglect of the indigenous auto industry.

Findings show the cost of locally-made vehicles

Findings show that the proposed N20 billion can purchase less than N600 brand-new cars at N35 million per vehicle.

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Checks on some Indigenous car makers, such as Innoson Vehicle Manufacturing (IVM), show that the prices of new vehicles range from N25 to N32 million, depending on the model. Some models at IVM cost as much as N100 million.

The Nigerian Credit Corporation (CreditCorp) launched the initiative with the National Automotive Design and Development Council (NADDC) to make single-digit loans available for Nigerians.

The reason was to promote patronage of brand-new vehicles made or assembled by local companies. It is also meant to stimulate the desire for brand-new cars as Nigerians have become accustomed to fairly used ones.

According to Daily Trust, a fairly used vehicle purchased for N3 million three years ago now costs over N10 million due to the high FX rate.

The lack of automakers complicates the scheme

An Investigation reveals that Nigeria had 56 local vehicle assembly plants, with an installed capacity of 500,000 units of vehicles annually, licensed under the 10-year NAIDP scheme and was launched a decade ago.

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Only six of the licensed plants are still operational due to low patronage.

Experts have disclosed that the proposed N20 billion is too little and coming too late.

Reports quote the Deputy Managing Director of CFAO Motors, Kunle Jaiyesinmi, saying that the amount was too paltry to purchase brand-new vehicles from local firms. 

FG opens applications to get loans to convert cars to CNG

Legit.ng earlier reported that CreditCorp had opened applications to provide Nigerians with consumer credit to access CNG conversions and solar home systems.

Dada Olusegun, President Tinubu's special assistant on social media, disclosed this and urged Nigerians to take advantage of the opportunity.

He said Nigerians wanting to covert their vehicles or build solar systems can apply for the scheme.

Source: Legit.ng