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FG Plans Affordable Vehicle Credit Purchase Scheme For Nigerians
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.
By Dipo Olowookere
Residents and motorists plying the Aina Obembe Road in Baruwa, Ipaja, Lagos, may soon heave a sigh of relief as the excruciating traffic gridlock being experienced in the area both day and night may soon be a thing of the past.
This is because the chairman of Ayobo-Ipaja LCDA, Mr Lukmon Agbaje, has directed those involved in indiscriminate truck parking along the road to remove the heavy-duty vehicles within one week, threatening to invoke appropriate enforcement measures for noncompliance with this directive.
Speaking during a meeting on Wednesday with the management of SENA Company, which owns the affected trucks, as well as the leadership of Oluwadara CDA and other key stakeholders like the Lagos State Traffic Management Authority (LASTMA), at the council’s secretariat, Mr Agbaje frowned at the prolonged inconvenience suffered by the community, stressing that public roads must remain accessible and safe for all users.
He emphasised the need for a collaborative approach in resolving the issue without undermining legitimate business operations, noting that he’s focused on finding a lasting solution to the gridlock experienced between Oluwaga and Aina Obembe, where parked trucks have continued to obstruct traffic, disrupt business activities, and pose safety concerns for residents and motorists.
He tasked the firm and the CDA to jointly identify and implement alternative parking arrangements that would remove all trucks from the affected roads and restore the free flow of traffic.
He declared that, “The welfare of our people remains our highest priority. No individual or corporate organisation should obstruct public infrastructure or create avoidable hardship for residents. We must ensure that economic activities coexist with public safety, order, and convenience.”
The council chief reaffirmed his administration’s commitment to promoting orderly development, ensuring safe and accessible roads, improving traffic management, and creating an environment where businesses can thrive alongside the well-being of residents.
By Adedapo Adesanya
The federal government has cut import levies on new and used vehicles by as much as 10 per cent in a move aimed at reducing the cost of vehicle importation, even as it commenced the implementation of a new Green Tax surcharge.
According to an update issued by the Nigeria Customs Service (NCS) on Wednesday, the import levy on new vehicles has been reduced from 20 per cent to 10 per cent, while the levy on used vehicles has been slashed from 15 per cent to five per cent under the 2026 Fiscal Policy Measures, which took effect on July 1, 2026.
The customs said the policy is designed to ease the cost of vehicle imports while advancing the government’s environmental sustainability objectives through the newly introduced Green Tax.
The implementation also reduces the overall import duty on fully built passenger vehicles from 70 per cent to 40 per cent.
As part of the Green Tax framework, a new environmental surcharge of between two per cent and four per cent will apply to petrol-powered vehicles with engine capacities exceeding 2,000cc. However, mass transit buses, electric vehicles, and passenger cars with engines below 2,000cc are exempt from the surcharge.
Beyond the automobile sector, the fiscal measures also lower import duties on several essential goods. The duty on imported rice has been reduced from 70 per cent to 47.5 per cent, while crude palm oil now attracts a 28.75 per cent duty.
In addition, import duties on agricultural and manufacturing machinery have been completely removed to support local production, while Waste PET has been added to the export prohibition list to encourage domestic recycling.
By Dipo Olowookere
Plans are underway to carry out a comprehensive data capture and registration exercise of all commercial motorcycle and tricycle operators within Ayobo-Ipaja LCDA.
This move, according to the council chairman, Mr Lukmon Agbaje, is part of proactive measures to strengthen the security of lives and property across the Local Council Development Area (LCDA). The exercise, he said, would be executed in partnership with security agencies and transport unions.
On Tuesday, the council chief convened a high-level security meeting with leaders of commercial transport unions and key security stakeholders operating within the area.
Mr Agbaje expressed concern over the increasing influx of commercial motorcycle (Okada) and tricycle (Keke) operators into the LCDA without proper documentation or profiling.
According to him, the absence of reliable records poses significant security challenges and could provide opportunities for criminal elements to infiltrate communities under the guise of commercial transportation.
He stressed that security is best achieved through preventive measures, noting that effective profiling and documentation remain essential tools in safeguarding residents and protecting the council from emerging security threats.
Mr Agbaje disclosed that under the new security framework, all Okada and Keke parks and operational locations across the LCDA would be officially documented, adding that every duly verified operator would receive an official identification jacket bearing a unique coded number to facilitate easy identification and monitoring.
He also said a mandatory guarantor system will be introduced to strengthen accountability, ensuring that every registered rider has a verifiable guarantor who can be contacted whenever necessary.
The chairman noted that these measures are designed not only to improve security coordination but also to protect law-abiding commercial operators and discourage criminal activities within the council.
Leaders of the various transport unions welcomed the initiative, noting that proper documentation will distinguish genuine operators from criminal elements, enhance public confidence, and promote a safer working environment for commercial transporters.
Also, the Divisional Police Officers (DPOs) of Ayobo and Ipaja Commands commended the initiative, describing it as a timely and commendable step towards strengthening community policing. They reaffirmed the Nigeria Police Force’s commitment to working closely with the council to ensure full compliance and sustain peace and public order.
