Connect with us

Auto

FG Plans Affordable Vehicle Credit Purchase Scheme For Nigerians

Published

on

vehicle-credit-purchase-scheme

By Dipo Olowookere

The National Automotive Design and Development Council (NADDC) has disclosed that the Federal Government was planning to put in place a vehicle credit purchase scheme that will enable Nigerians buy locally assembled cars at low interest rates with payment period spread over a period of about four years.

This was disclosed by the NADDC Director of Policy and Planning, Mr Luqman Mamudu, at a meeting with Commerce and Industry Correspondents Association of Nigeria (CICAN) in Lagos recently.

According to Mr Mamudu, when this scheme is put in place, millions of Nigerians would be able to afford new cars and forgo fairly used cars, which they presently prefer.

Mr Mamudu noted that the NADDC was contributing about N7.5 billion into the scheme with a counterpart funding from a company in South Africa with the aim of making Nigerian made vehicles affordable for Nigerians and promote massive patronage for the products of the local assembly plants.

“This is what we have been working on for the past two years. We looked at the available assess to asset financing in the country and we found out that the high interest rate is frustrating the purchase of new vehicles.

“This is the gap we want to fill. We are currently working with a company in South Africa which has footprints in eight African countries where they have developed a commercial and financial model to recoup their investment.

“At NADDC, we are also contributing our own N7.5 billion into the scheme while the South African company will help source for finance from Development Finance Institution (DFI) at single digit interest rate while our own N7.5 billion injection into the scheme will be interest free,” he said.

Mr Mamudu said further that when the funds are put together, it will guarantee an interest rate that will be easy for people to purchase vehicles at an interest rate that is fairly okay.

His words, “We are discussion with the Central Bank of Nigeria (CBN) to originate the loans and float it so that it will be attractive for investors to partake in the scheme. Going forward, this will bring down the interest rate.

“This facility will be given to people that have the capacity to buy cars because we expect that they will have the good credit to purchase a car.

“If you go to America, over 80 per cent of car purchases are through loans. The credit purchase scheme will assist the operators to help the masses.”

“We are also building three auto test laboratories costing about N3 billion in Lagos, Kaduna and Enugu States; all of which are about 90 per cent complete and would be ready for commissioning by the end of the year.

“The one in Lagos is a vehicle emission testing laboratory, the Enugu laboratory is for components tests while the laboratory in Zaria, Kaduna State is for materials testing and vehicle evaluation.

“We are doing all these to prepare for the next stage of component development because this is where job opportunities are enormous, but the entire process requires patience on the side of government and investors.

“We have to encourage these Original Equipment Manufacturers (OEMs) to come with their capacity. If we create the right environment for them, they will come with their capacity to produce here, and when this happens, we can export from here to earn foreign exchange.

“We are calling on the OEMs to use Nigeria as a manufacturing hub for the whole West Africa but we must be steady and focused so that we do not lose the opportunity,” he disclosed.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Auto

Mixed Reactions Over Nigeria’s Ban on Importation of Accidented Vehicles

Published

on

import accidented cars nigeria

By Modupe Gbadeyanka

Reactions have continued to trail the decision of the federal government to stop the importation of accidented vehicles into Nigeria by car dealers and others.

On Tuesday, the government declared that it would no longer accept the importation of vehicles without prior certification, noting that it was worried at the influx of substandard automobiles into the country.

The Minister of State for Industry, Trade, and Investment, Mr John Enoh, said the no certification, no entry policy tagged the Standard Organisation of Nigeria–National Automotive Design and Development Council Vehicle Conformity Assessment Programme was now fully implemented with immediate effect, noting that any vehicle that fails to meet the requirements would be denied entry into the country.

“I want to clarify again that this is not a proposal or a pilot. This has become government policy and takes immediate effect upon commencement,” he declared at a meeting in Abuja, stressing that vehicles coming into the nation must obtain pre-shipment certification.

“So, the endorsement integrates vehicle safety into Nigeria’s economic policy framework. It aligns fiscal instruments, foreign exchange import financing, and revenue systems with safety and standards objectives.

“It also strengthens the long-standing work of the Standard Organisation of Nigeria and NADDC within a coordinated whole-of-government approach.

“I think that with effect from the commencement of this SON-NADDC VehCAP, all new and used vehicles and automotive products entering Nigeria must obtain pre-shipment certification on that VehCAP before form M approval, before customs valuation, before power processing, before import clearance, and before market entry,” he stated.

“No vehicle or automotive product shall be imported, cleared, registered or licensed without valid certification. Any non-compliant import shall be subject to refusal of clearance, seizure, or sanctions under applicable laws,” he added.

Mr Enoh disclosed that, “We did not arrive here by accident. Too many Nigerians have died from accidents caused by vehicles that fell short of required standards. Nigeria deserves better, and this government is determined to deliver better.”

While he admitted that some Nigerians may not be able to afford new vehicles, the government cannot fold its arms and allow its citizens to die because of substandard cars.

“I think that without taking an extreme position, we must find a middle ground. There are economic challenges, there is purchasing power, and there is also the capacity of local assemblers to meet demand.

“But at the very minimum, if we adhere strictly to existing regulations, such as limits on the age of imported vehicles, our problem will not be nearly as bad as it is,” he said.

“A vehicle that is non-compliant at the federal level must not be registered at the state level. For the FCCPC, you are expected to treat VehCAP certification as a baseline for consumer protection enforcement for vehicles. State governments, because we run a federation with federal units, state governments are expected to align vehicle registration systems with VehCAP requirements. Most importantly, let me acknowledge the very profound role that was played by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for approving the VehCAP initiative,” he warned.

While some Nigerians applaud this initiative, others believe citizens would be exploited by government officials and make the price of fairly used cars more expensive. Some dealers have been accused of bringing in accidented cars, refurbishing them and selling to unsuspecting customers at exorbitant prices.

Continue Reading

Auto

LASPA Threatens Computer Village Touts Over Illegal Parking Extortion

Published

on

Computer Village Touts

By Aduragbemi Omiyale

Individuals and syndicates involved in illegal parking extortion at the Computer Village area of Ikeja have been warned to desist or face the full weight of the law.

This caution was given by the General Manager of the Lagos State Parking Authority (LASPA), Mrs Adebisi Adelabu, in a statement.

She said her organisation has uncovered a racket where fraudsters, working in collaboration with touts, are illegally collecting parking fees of up to N1,000 from motorists under false pretences.

Mrs Adelabu further revealed that some operatives of the Lagos Central Business District (CBD), in Ikeja, often clamp down on the illegally parked vehicles, either removing their number plates or arranging for the vehicles to be towed away, making vehicle owners pay a significant fine to recover both their vehicles and license plates.

She emphasised that the management and regulation of parking within the Ikeja business district, Computer Village and the entire state is not within the statutory purview of the CBD or any group of touts but rests exclusively with LASPA.

“We are aware of these fraudulent activities, and we want to make it clear that LASPA is the only government body legally mandated to oversee parking in Lagos State,” she said.

Continuing, the GM of LASPA condemned these illicit activities in the strongest terms, describing them as a disservice to the public and an embarrassment to the efforts of the state government at creating a seamless and orderly parking ecosystem.

The management of LASPA therefore urged all perpetrators engaged in illegal parking activities to stop immediately, adding that the Authority has revamped its monitoring and enforcement operations in the Computer Village and the State environs.

While stressing that anyone engaging in illegal parking activities will be arrested and prosecuted without leniency, Mrs Adelabu advised Lagos motorists and visitors to the Computer Village area to remain vigilant and patronise only LASPA-registered parking operators with valid identification and receipts.

The general public was also urged to report any suspected individuals or groups engaging in illegal parking operating in LASPA.

Continue Reading

Auto

Passengers Lament as Uber, Bolt Drivers Strike in Lagos

Published

on

Uber Technologies System Nigeria Limited

By Dipo Olowookere

Rising operational costs and declining earnings have forced drivers of ride-haling platforms like Uber and Bolt to embark on a three-day warning strike in Lagos.

This situation has not gone down well with their customers in the metropolis, who have expressed frustration over the strike.

“Though I am not happy with the action of the drivers, I feel for them because they operate in a harsh environment,” a customer of Bolt, Mr Seyi Adeniji, said.

When Business Post checked the Uber app on Monday morning to book a ride from Egbeda to Megida Ayobo, both in the Alimosho Local Government Area of Lagos State, it was functional, but with fewer drivers available for pick-up, with prices ranging from N5,200 on Uber X to N7,400.

One of the drivers, who spoke with this newspaper but begged for anonymity, said efforts by them for improved packages have failed.

It was gathered that when nothing concrete came out from talks with operators of the platforms, drivers, under the aegis of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Lagos State Chapter, decided to begin a warning strike from March 16 to 18, 2026, to further press home their demands.

They want an immediate review of ride fares to reflect current economic conditions. They also seek a cut in commission charges by ride-hailing companies, and want the introduction of a guaranteed minimum trip fare.

The drivers have asked for insurance coverage, an end to unjust deactivation of driver accounts without proper investigation, and greater transparency in how fares and commissions are calculated.

In addition, they want improved safety protections for drivers through better rider-verification systems, emergency panic buttons, and faster response mechanisms in cases of security threats.

According to a statement from the spokesman of the organisation, Mr Steven Iwindoye, many drivers are struggling to remain financially viable due to increasing fuel prices, vehicle maintenance costs, inflation and other living expenses, while fare structures on ride-hailing platforms have remained largely unchanged.

“Drivers operating on platforms such as Uber, Bolt, inDrive and Lagride continue to face rising operational costs, including the high price of fuel, vehicle maintenance, inflation and daily living expenses.

“Unfortunately, the fare structures and policies of these companies have not been adjusted to reflect these economic realities,” the statement said.

It was stressed that many drivers now work extremely long hours yet still struggle to earn a sustainable income, clarifying that, “This strike is not intended to punish commuters but to demand fair treatment, economic sustainability and safety protections for the drivers who power the ride-hailing industry.”

Continue Reading

Trending