The House of Representatives Committee on Industry has pledged to push for legislation enabling single-digit interest loans for Nigerians seeking to purchase new cars, tricycles, and motorcycles through credit schemes.
The resolution followed an oversight visit on Tuesday to automobile, tricycle, and motorcycle assembly plants in Lagos, conducted in collaboration with the National Automotive Design and Development Council (NADDC).
Led by Committee Chairman Dr. Enitan Dolapo-Badru, the lawmakers visited Dag Industries Nigeria Ltd., Simba TVC, and CIG Motors as part of a nationwide inspection of local manufacturers.
Speaking during the tour, Dolapo-Badru decried the high vehicle loan rates currently offered by commercial banks, ranging between 24 per cent and 38 per cent, calling them “unsustainable and counterproductive.”
“Even a director on grade level 17 cannot afford a new car outright. We must revisit this through the Central Bank, regulators, and assemblers so Nigerians can stop importing scraps,” he said.
The committee emphasised the need for stronger bank participation in credit financing,
enhanced local content and spare parts production, and viable price regulation in the automobile sector.
The lawmakers lauded the efforts of NADDC, Standards Organisation of Nigeria (SON), and the Manufacturers Association of Nigeria (MAN) for their roles in strengthening Nigeria’s local vehicle production ecosystem.
They assured stakeholders that the National Assembly will partner with financial institutions and regulators to ensure affordable credit facilities and a cleaner, more efficient automobile market.
NADDC Director-General Mr. Joseph Osanipin echoed the call for stronger bank and private sector support, noting that the current N20 billion intervention fund under the CREDICORP scheme was insufficient.
“No government can fully finance the automobile industry alone. Globally, banks provide up to 90 per cent of the cost of vehicles,” he stated.
Osanipin revealed that under a new NADDC initiative, Nigerians could make an initial 5 per cent down payment and take immediate delivery of vehicles, paying the balance through a credit guarantee scheme.
