Tinubu’s credit scheme will promote growth of auto sector- NADDC

Spread the love

Tinubu’s credit scheme will promote growth of auto sector- NADDC

By Lucy Ogalue

The Federal Government’s Credit Scheme aimed at ensuring the affordability and availability of locally assembled vehicles will enhance the growth of Nigeria’s Automotive Council, Mr Joseph Osanipin said.

Osanipin, the Director-General, National Automotive Design and Development Council (NADDC), said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

According to him, under President Bola Tinubu-led administration, the council has extended crucial financial support to assembly plants across Nigeria.

“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.

“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,’’ he said.

Osanipin expressed hope that the credit, which would be given at a favourable rate, would bolster growth, ensure the sector thrived, and contribute significantly to the economy.

In spite of this support, some assembly plants faced challenges such as operating below capacity or shutting down production.

While acknowledging these issues, the NADDC boss emphatically stressed the importance of consistent production, saying the president’s directive would ensure regular production.

Osanipin said affordability was a key focus of the Federal Government’s automotive policy.

According to him, locally assembled new vehicles are competitively priced compared to imported ones.

“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.

See also  FG to reduce duties on cars, other vehicles – Customs

“Let us say utility vehicles (pickup), if you look at the price of sone pickup vans assembled in Nigeria are about 60 per cent of the price of those that are coming from outside.

“Some are 70 per cent, some are 80 per cent based on the type of the pickup vans, so in terms of price, they can compete with new vehicles,’’ Osanipin said.

The NADDC boss said the availability of assembled vehicles was another critical area being addressed.

He recounted an instance where a government agency (MDA) needed ambulances and was directed to purchase CNG vehicles locally.

Osanipin said the assembler delivered the initial batch immediately and then produced the remaining ones, which was done promptly.

According to him, this demonstrates the capability of local assemblers to meet demand, provided there is sufficient support and consistent demand.

He said that the credit scheme would ensure that more Nigerians opt for locally assembled vehicles, thereby, boosting production.

“As the nation looks forward to the coming years, the positive impact of these policies will continue to drive the growth and development of Nigeria’s automotive industry, creating jobs, boosting the economy, and promoting local manufacturing. (NAN)

Edited by Ese E. Eniola Williams

Leave a Comment

Notify of
Inline Feedbacks
View all comments
error: Content is protected !!
Would love your thoughts, please comment.x