Replace Fuel Subsidy With Vehicle Credit to Drive Mobility, Jobs,LCCI, Ilekuba tell FG

Nigeria’s automotive stakeholders have called for an urgent shift from fuel subsidy to affordable vehicle financing, saying the new model could make vehicle ownership accessible to more Nigerians while driving local production, creating jobs and reducing dependence on imported automobiles.

The call was made on Thursday at the LCCI/National Automotive Design and Development Council Automobile Symposium, themed, “From Subsidy to Credit: Can Vehicle Financing Replace Fuel Subsidy as Nigeria’s Mobility Equalizer?”

Chairman of the LCCI Auto and Allied Sector Group, Dr Femi Eguaikhide, said affordable vehicle credit could restore access to mobility, improve productivity and create a stronger market for Nigeria’s automotive industry.

He said fuel subsidy had for decades effectively functioned as Nigeria’s mobility policy by helping to keep transportation relatively affordable for millions of Nigerians, including commercial drivers, teachers and small-business operators.

However, following its removal in May 2023, Eguaikhide said mobility costs had risen sharply, resulting in higher transport fares and increased prices of goods and services, with knock-on effects on productivity.

“Subsidy made fuel cheap, but cars remained expensive. So only the rich owned productive assets,” he said, arguing that vehicle credit could enable more Nigerians to acquire income-generating vehicles and repay loans from the proceeds.

Eguaikhide called for affordable, preferably single-digit interest rates and longer-tenor lease-to-own schemes for commercial operators using buses, tricycles and motorcycles.

“Can we create a ₦50,000/month plan for a keke driver?” he asked, urging financial institutions to develop financing products around borrowers’ earning capacity rather than conventional lending models.

He also advocated the use of vehicle telematics, tracking systems and cash-flow data to develop “mobility credit scores” that could help lenders assess the repayment capacity of commercial transport operators.

But Eguaikhide warned that vehicle financing must not become a fresh channel for importing used vehicles.

“If we use credit to import more Tokunbo, we’ve solved nothing,” he said, advocating financing for CNG conversions, locally assembled electric and hybrid vehicles, as well as mass-transit buses.

He summed up the proposed policy shift: “Subsidy gave us consumption. Credit can give us production.”

In a special address, Chairman and Chief Executive Officer of Cedric Masters Group, Chief (Sir) Anselm Ilekuba, also canvassed a fundamental shift towards vehicle financing, stressing that such a policy must simultaneously promote Nigeria’s automotive industrialisation.

Ilekuba, who was represented at the event by his Chief Finance Officer and Head of Accounts and Strategy, Christabel Mmesoma Ilekuba, decried the impact of high financing costs, short repayment periods and pressure on household incomes on vehicle ownership, despite strong demand for automobiles.

He urged the Federal Government to seriously consider the proposed National Automotive Bank being championed by NADDC, describing it as a specialised financing institution that could support consumers, vehicle assemblers and component manufacturers.

Ilekuba proposed longer-tenor financing for qualifying locally assembled vehicles, alongside industrial credit for manufacturers and funding for machinery, technology, certification and capacity expansion by component producers.

He also called for stronger localisation of automotive components, citing the proposed National Automotive Components Parts Gateway being developed by ALCMAN with Chinese partners.

According to him, the Automotive Bank and Components Gateway could create a cycle in which increased vehicle purchases stimulate local assembly, boost demand for locally produced components, expand factories and generate jobs, while reducing Nigeria’s exposure to foreign-exchange pressures.

Ilekuba said the success of vehicle financing should therefore not be measured merely by the number of loans disbursed, but also by growth in local vehicle assembly, component production, factory expansion, employment and foreign exchange conserved or earned.

“The old subsidy helped Nigerians consume mobility. The new approach should help Nigerians own mobility—and help Nigeria produce it,” he said.

Jetour Set to Storm Abuja Show with Rugged Luxury T2 

Abuja is set for a taste of rugged luxury as Jetour Nigeria puts its adventure-ready T2 SUV in the spotlight at the Jetour Experience Abuja from September 22 to 24, 2026, giving motorists in the Federal Capital Territory and neighbouring states an opportunity to test its blend of off-road capability, premium comfort and advanced technology.

The three-day showcase at Maha Event Centre, Area 8, Garki, will feature test drives, live demonstrations and direct interaction with Jetour product specialists, offering prospective buyers a closer look at the T2 and other models in the automaker’s growing Nigerian line-up.

Positioned as a premium SUV combining off-road capability with comfort and advanced technology, the Jetour T2 is designed for motorists seeking a vehicle capable of handling both city driving and challenging terrain.

Jetour Nigeria is distributing the T2 and other models via its seven accredited dealers — Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Germaine Auto Centre, Kojo Motors, Mandilas Autos, R.T. Briscoe Motors and Tab Autos Limited.

The T 2 SUV is powered by a 2.0-litre turbocharged engine producing 254 horsepower and 390 Nm of torque. The engine is paired with a seven-speed dual-clutch transmission and BorgWarner sixth-generation intelligent four-wheel-drive system.

It also features five driving modes — Eco, Sport, Mud, Rock and X Smart — designed to provide improved adaptability across different road and terrain conditions.

Measuring 4,758mm in length, 2,006mm in width and 1,880mm in height, the SUV offers 220mm ground clearance and a 70-litre fuel tank, giving it the capability for extended journeys and off-road adventures.

Inside the cabin, the T2 combines rugged styling with modern comfort, featuring ergonomic seating and a 15.6-inch touchscreen infotainment system with Apple CarPlay, Android Auto and intelligent voice control.

Its safety and driver-assistance features include a 360-degree panoramic camera, rear parking sensors, Lane Departure Warning, Blind Spot Detection, Anti-lock Braking System and Emergency Brake Assist.

The SUV also comes with off-road crawl control as well as push-button and remote-start functions.

The Abuja experience follows Jetour Nigeria’s recent showcase in Lagos as the automaker continues to expand its presence and customer reach across the country.

With its combination of performance, technology, safety and luxury, the Jetour T2 is expected to attract motorists seeking an SUV capable of combining everyday urban mobility with adventure and off-road driving.

NCAA Moves Against Airlines Over Rising Flight Delays

Thousands of Nigerian air passengers faced delays in August as domestic airlines struggled to keep to their scheduled flight times.

Now, the Nigerian Civil Aviation Authority (NCAA) says it is taking regulatory steps that could lead to sanctions against airlines responsible for persistent delays.

The regulator’s August data showed that 4,765 of 7,961 scheduled domestic flights were delayed. In other words, nearly 60 per cent of the flights did not leave as scheduled.

Air Peace and United Nigeria Airlines recorded some of the highest delay rates, with 71 per cent and 76 per cent of their flights respectively affected.

NCAA Warns Airlines

NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, said that the regulator had already engaged some of the airlines involved.

According to him, the NCAA met with Air Peace, United Nigeria Airlines and Max Air and issued stern warnings over their operations.

The authority is now weighing further regulatory measures as the problem continues to affect passengers.

Achimugu also urged travellers to consider other airlines when repeated delays make a particular carrier unreliable.

“When one airline is continuously misbehaving, buy tickets on another airline and make your flight” he said.

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Passenger Rights Put Enforcement Under Spotlight

However, aviation consultant Capt. John Ojikutu believes the recurring problem exposes a wider weakness in the sector.

Ojikutu said Nigeria has regulations intended to protect air travellers, but questioned how consistently those rules are enforced.

“The regulation is there to protect the customer. What is the enforcement?” he said.

He noted that passengers can report violations to the appropriate authorities. But, in his view, regulators must follow up on those complaints with meaningful action.

The aviation expert also recalled experiencing severe delays himself.

He said he once travelled to Abuja and passengers had to board an aircraft three times before another plane was brought in to complete the journey.

The disruption, he said, left him returning to Lagos considerably later than expected.

Are Airlines Planning Their Routes Properly?

Ojikutu also linked the industry’s problems to the way some airlines plan their operations.

He questioned the number of carriers competing on the Lagos-Abuja route, particularly when several airlines operate multiple flights each day.

His argument is that airlines should first establish the level of passenger demand before selecting routes, aircraft sizes and flight frequencies.

According to him, deploying aircraft capable of carrying more than 100 passengers without sufficient demand can put additional financial pressure on an airline.

He therefore advised carriers to consider routes with enough passengers but less competition.

Smaller Aircraft Could Serve Regional Routes

Ojikutu said the industry could also learn from the operational model used by the former Nigerian Airways.

He recalled that the airline used larger aircraft on major routes while smaller planes connected regional destinations to major airports.

He suggested that modern carriers could adopt a similar approach by connecting cities such as Sokoto, Kaduna, Jos and Minna to larger aviation hubs.

Rather than having every airline compete directly on major routes, he said carriers could develop regional networks that feed passengers into bigger airports.

He also called for more airlines to establish bases outside Lagos.

According to him, encouraging operations in other parts of the country could reduce the heavy concentration of airlines in Lagos and create stronger regional connections.

Concern Over Airline Survival

Ojikutu further questioned the short lifespan of many Nigerian airlines.

He attributed part of the problem to weak business planning and argued that airlines should present credible, sustainable plans before receiving regulatory approval to operate.

The latest development therefore puts both airlines and the aviation regulator under scrutiny, as passengers continue to deal with delays despite existing rules designed to protect them.

NCAA Moves Against Airlines Over Rising Flight Delays