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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 Adedapo Adesanya
The Lagos State Government has reiterated its commitment to creating an eco-friendly state with fewer cars on the roads in the future.
The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi, said this during a presentation at the closing of the fifth Lagos Real Estate Marketplace Conference and Exhibitions in Lagos.
Mr Osiyemi said that the commitment is in line with the T.H.E.M.E.S Agenda of Mr Babajide Sanwo-Olu’s led administration, expressing concerns that traffic congestion costs the state trillions of Naira in budget deficits annually.
The transportation commissioner noted that the heavy reliance on road transportation, which accounts for 90 per cent of travel in Lagos, is unacceptable and unsustainable.
The Commissioner stated that water and rail transportation account for only two per cent of the means of transportation, highlighting their gross underutilisation.
Mr Osiyemi emphasised that every sector in the state must be robust enough to contribute significantly to the wellbeing of its residents, as Lagos accounts for 30 per cent of the nation’s gross domestic product.
He expressed the state’s readiness to maximise the use of intermodal transportation system, to help upscale socio-economic activities in the metropolis and reduce man-hour loss to traffic.
In a panel discussion, the Special Adviser to Governor Sanwo-Olu on Climate Change and Circular Economy, Ms Titilayo Oshodi, emphasised the need for the state and its stakeholders to adopt a purposeful approach to waste management.
Ms Oshodi highlighted the importance of a circular economy in recycling, repurposing and reusing waste effectively.
She noted that several policies were already in place in the state for managing waste, urging producers and manufacturers across various sectors to collaborate with the state government to contribute to carbon reduction efforts.
Other panellists including Ms Stella Okengwu, Chief Executive Officer of Winhomes, said that the current economic situation calls for housing to be built based on clear demand that aligns with people’s budgets while Mr John Oamen, Co-founder of Cutstruct, urged the state government to promote the digitisation of construction procurement.
This, he added, would enhance the efficiency and practices of the construction and real estate sectors.
By Modupe Gbadeyanka
There are plans by Heirs Insurance to introduce insurance products tailored for vehicle owners, a statement from the underwriting firm has disclosed.
According to the subsidiary of Heirs Holdings, this low-cost motor insurance package known as the Flexi Comprehensive Motor Insurance Plan will provide the benefit of a comprehensive motor insurance plan for a fraction of the cost, addressing the financial realities many Nigerians face.
The underwriting company announced the plan to introduce this package as it launched a new campaign designed to reward its customers.
This initiative themed Unwrapping Smiles will bring hope to individuals, families, and communities this holiday season, and will run from December 10 to December 31, 2024.
It will feature community-focused outreaches, including Christmas gifts and exciting rewards to put smiles on the faces of Nigerians. It will also include the launch of a holiday-watch web film known as The Underwriters for all Nigerians to enjoy.
“At Heirs Insurance Group, we are committed to providing much more than insurance. In a season when many Nigerians seek hope and reasons to smile, we are proud to offer initiatives that inspire and uplift,” the Chief Marketing Officer of Heirs Insurance, Ms Ifesinachi Okpagu, said.
By Adedapo Adesanya
Nigeria’s Presidential Compressed Natural Gas Initiative (PCNGi) claims that investments in championing the CNG value chain have hit $450 million.
This was disclosed by Mr Michael Oluwagbemi, Project Director and Chief Executive Officer (CEO), PCNGi, during the 9th Edition of the Nigeria Energy Forum (NEF2024) Day 2, Virtual Event themed Energising Sustainable Industrialisation.
According to the PCNGi CEO, the amount goes into things like mother stations, daughter stations and refuelling stations as well as conversion centres which are starting to spring up across the nation.
Mr Oluwagbemi, represented by Mr Tosin Coker, the Head of Commercial, PCNGi, said the initiative had successfully converted more than 10,000 vehicles from petrol to CNG.
“By 2027, the initiative will have converted more than one million vehicles using petrol to CNG,” he said.
On incidents of explosion of vehicles using CNG, the CEO assured Nigerians that it had taken precautionary measures with different agencies of government to ensure safety.
Mrs Ibironke Olubamise, National Coordinator of the GEF Small Grants Programme (SGP), managed by UNDP, said the SGP was investing in youth energy innovation for economic growth and environmental sustainability.
Mr Daniel Adeuyi, NEF Group Chairman, said, “The event featured three super sessions on Energising Industrial Revolution, Community Climate Action by GEF-SGP UNDP and Clean Energy Innovations.
“The sessions are to share lessons learnt from real-life projects and build capacity of young entrepreneurs and cross-industry professionals.”
Mr Joseph Osanipin, the Director General of the National Automotive Design and Development Council (NADDC), said that the council had trained more than 4,000 auto technicians on how to convert petrol vehicles to CNG.
He said the council had started campaigns to sensitise Nigerians on the advantages of using CNG to power their vehicles.
“CNG can guarantee a cleaner environment, it is cheaper and affordable,” he said.
Mr Oluwatobi Ajayi, the Chairman and Managing Director of Nord Automobile Ltd., said the company was established to tackle the growing demand for vehicles in Africa and reduce import dependency.
He said that because of the Federal Government’s CNG initiative, the company had incorporated it into their vehicle production to meet up with the government policy.
Mr Armstrong Tankan, the Managing Director and Chief Executive Officer, Ministry of Finance Incorporated (MOFI), said that MOFI was set up in 1959 as the statutory vehicle to hold all the assets owned by the federal government.
“Today, we’ve been able to identify the assets the federal government owns and we are trying to track them.
‘We actually do have assets, not just locally but globally as well and we must establish visibility over what the federal government owns before we can start talking about managing them.
“So, we want to try to minimise the waste, minimise the overlaps and help to improve output,” he said.
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