Auto

Fund auto credit scheme with import duty, stakeholders tell FG

Published

2 years ago

July 12, 2024

Fund auto credit scheme with import duty, stakeholders tell FG

Key operators in the automotive industry are demanding the creation of vehicle credit scheme using import levies collected on automobiles.
They also called on President Bola Tinubu to sign into law the National Auto Industry Development Plan (NAIDP) bill to give local and foreign investors more confidence in the sector.
These are parts of their resolutions after a recent Nigeria auto industry summit held in Lagos as contained in a communique.
The event was organised in Lagos by the Nigeria Auto Journalists Association in collaboration with the National Automotive Design and Development Council (NADDC).

The Federal Government had in the past made efforts to set an auto finance scheme but they were aborted somehow.

For instance, a South African bank was to spearhead the project at a time but it backed out midway.

Some three Nigerian banks were mentioned in connection with the next phase under Aliyu Jelani as NADDC DG but the effort did not materialise, making it difficult to buy new vehicles with low-interest loans.
“The proceeds of the ‘levy’ charged on the importation of passenger vehicles should be used for its purpose, which is the development of the automotive industry, ‘especially in the area of Vehicle Credit Scheme’, the communique stated .
The communique, which was delivered to the Presidency and the National Assembly on Monday, July 8th, 2024.
also noted that the NAIDP was key to the development of the nation’s economy.
They therefore urged the President to sign it into law in order to provoke OEMs’ confidence in the nation’s economy and erase their fears of policy summersault.
In the 19-paragraph communiqué made available to journalists on Thursday, prominent auto firms, among other medium-term measures, stressed that while passing the NAIDP, a provision backing compulsory patronage of locally assembled/manufactured vehicles by all government functionaries, establishments, agencies and parastatals must be re-enacted and implemented.
The stakeholders charged the government at all levels to patronise only vehicles made or assembled in Nigeria, as a way of leading by example, saving foreign exchange and securing jobs.
In the same vein, they charged the National Assembly to review the zero differentials between import of Fully Built Up (FBU) and Completely Knocked Down (CKD) commercial vehicles, which presently stands at 10 per cent.
On what they described as an unclear process utilized in the recent launch and allocation of 1000 units of CNG vehicles to local assemblers, the stakeholders asked the National Assembly to, when passing the NAIDP, incorporate a provision that mandates the Federal Government to give a fair chance for all existing auto assemblers and manufacturers to partake in supplies of CNG vehicles to the government
The communique read also read in part, “The government must simplify the CNG process by harmonizing the workings of the Federal Ministry of Finance and that of the Nigeria Customs Service on the issue of gazetted duty free allowance on CNG equipment.
“The government must ensure that all imported used vehicles, including salvaged ones, must be accompanied by certificates of integrity by originating countries.
“The government should tackle inadequate access to finance through its fiscal and monetary policies; take a second look at interest rates offered by Nigerian banks which are significantly higher compared to other countries.”
As a long term measure, the stakeholders urged the Federal Government to aggressively incentivize CKD assembly through contract manufacturing to leverage the nation’s existing automotive assembly capacities and expeditiously restart the automotive industry from its heights in the 1980s.
“The government,” they stated further, “should develop and implement an automotive raw materials and component manufacturing master plan.”
Also stated in the communiqué is a call on the government to revive tyre, battery, and glass manufacturing as a precursor to revamping local manufacture of: welded parts (exhaust system, seat frames); electrical parts (batteries, trafficators, wiring harness); plastic and rubber parts (tyres, tubes, fan blades, seat foam, oil seals, hoses, radiator grills, etc); radiator, cables, filters, brake pads/linings, windscreens, side glasses, fibre-glass parts, paints; rubber products (tyres) and thereafter, other Tier 2 and aftermarket components.
The summit was attended by the Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, Director General of NADDC, Mr. Joseph Osanipin and representatives of key auto industry stakeholders, the Nigeria Automotive Manufacturers Association (NAMA), Automotive Local Component Manufacturers Association of Nigeria (ALCMAN), Lagos State government and Comptroller General of the Nigeria Customs service, Bashir Adewale Adeniyi.

Up Next

Lanre Shittu assembly plant for trucks, pickups excites NADDC DG

Don't Miss

NADDC DG speaks on transiting from SKD to CKD as he tours more auto plants

Auto

NADDC Pushes Affordable Auto Loans to Boost Vehicle Ownership, More Jobs

Published

12 hours ago

September 21, 2026

Trends Admin

NADDC Pushes Affordable Auto Loans to Boost Vehicle Ownership, More Job

The National Automotive Design and Development Council has called for far-reaching reforms in vehicle financing to make car ownership more affordable while boosting local vehicle assembly, job creation and industrial development.

The Council said a properly structured financing system could turn vehicle credit from a mere consumer lending product into a major economic tool for expanding productive mobility and strengthening Nigeria’s automotive value chain.

Director-General of NADDC, Otunba Joseph Oluwemimo Osanipin, stated this in an address delivered on his behalf by the Council’s Principal Information Officer, Tanko Kyumnom, at the Lagos Chamber of Commerce and Industry (LCCI) Auto Sectoral Group Symposium in Lagos.

The symposium, held on Thursday, September 17, 2026, at the Henry Fajemirokun Hall of LCCI, was themed: “From Subsidy to Credit: Can Vehicle Financing Replace Fuel Subsidy as Nigeria’s Mobility Equaliser?”
Osanipin said the growing cost of mobility had made it necessary to explore financing models that would enable individuals, businesses and transport operators to acquire vehicles without bearing the full cost of ownership upfront.

According to him, spreading vehicle payments over an agreed period could provide a more sustainable pathway to vehicle acquisition, provided that the financing products are affordable, accessible and structured around the economic realities of Nigerian consumers.

He, however, cautioned that simply making credit available would not be enough.
“Vehicle financing offers a more sustainable approach by enabling individuals, businesses and transport operators to acquire vehicles and pay for them over time,” Osanipin stated.
The NADDC DG said the bigger opportunity lies in linking vehicle financing with the growth of locally assembled and Nigerian-made vehicles.

He explained that increased access to credit for locally produced vehicles could generate wider economic benefits by stimulating demand for domestic assembly, supporting component manufacturers, creating jobs and strengthening local supply chains.

Osanipin therefore urged stronger collaboration among government institutions, financial institutions, vehicle manufacturers and other stakeholders in designing financing schemes capable of supporting both mobility access and automotive industrialisation.

The NADDC boss identified affordable vehicle loans, leasing arrangements, fleet financing, credit guarantees and appropriate interest-rate support as mechanisms that could broaden access to vehicle ownership and productive mobility.

lt also stressed the need for repayment structures that take into account the earning patterns and business realities of Nigerians, particularly transport operators and small businesses whose vehicles are directly linked to their income-generating activities.

Osanipin maintained that the objective should extend beyond increasing the number of vehicles on Nigerian roads.
“The goal is not simply to put more vehicles on Nigerian roads. It is to ensure that Nigerians can access productive mobility without placing an unsustainable burden on government finances or household incomes,” he said.

According to him, a properly structured automotive financing system could create a stronger connection between mobility, economic inclusion and domestic vehicle production.

“With the right policies and partnerships, vehicle financing can become a powerful instrument for mobility, economic inclusion and automotive industrial development,” Osanipin added.

The NADDC’s position places vehicle financing within the broader effort to build a sustainable automotive ecosystem in Nigeria—one in which access to credit supports vehicle users while also creating stronger demand for local assembly, components and associated automotive services.

Auto

Jetour T1 Storms Abuja as Automaker Accelerates Nigeria Expansion

Published

17 hours ago

September 21, 2026

Trends Admin

Jetour T1 Set to debut in Abuja as Expansion Gains Momentum

Following a successful debut in Lagos, Jetour Nigeria will host the Jetour Experience Abuja from September 22 to 24, 2026, positioning its all-new T1 model as a major competitor in the country’s growing adventure SUV market.

The three-day event in the Federal Capital Territory will give prospective buyers and motoring enthusiasts direct access to product demonstrations, expert-led technical sessions, and hands-on test drives.

“Strong participation, extensive test drives, and significant sales enquiries at the Lagos edition, coupled with growing demand from Abuja residents, influenced the decision to bring the experience to the nation’s capital,” the company said in a statement. The show holds at Maha Event Centre, Area 8, Garki.

To support its growing national footprint, Jetour Nigeria has established a network of seven accredited dealers: Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Kojo Motors, Germaine Auto Centre, Tab Autos Limited, R.T. Briscoe Motors, and Mandilas Autos. The partnerships cover retail sales, genuine spare parts supply, and comprehensive after-sales maintenance.

Jetour T1 Set to debut in Abuja as Expansion Gains Momentum

Auto

Abuja Demand Rises as Jetour Brings X70 Plus Experience to FCT

Published

2 days ago

September 20, 2026

Trends Admin

Abuja Demand Rises as Jetour Brings X70 Plus Experience to FCT

Jetour Nigeria is taking its seven-seater X70 Plus SUV to Abuja as rising interest from motorists in the Federal Capital Territory and neighbouring states fuels the brand’s latest push to deepen its presence across Nigeria.

The X70 Plus will headline the Jetour Experience Abuja, holding from September 22 to 24 at Maha Event Centre, Area 8, Garki, following the strong response recorded during the Lagos edition, where motorists turned out for test drives and made enquiries about Jetour models.

The Abuja activation is designed to give prospective buyers direct access to the X70 Plus and other models, with opportunities to test-drive the vehicles, engage product specialists and experience their technology, safety and comfort features.

The X70 Plus is positioned as a family-oriented SUV, offering seven-seat capacity and a range of features targeted at customers seeking comfort, technology and practicality.

The SUV is available with 1.5-litre and 1.6-litre turbocharged engine options, with outputs of up to 145kW and 290Nm of torque, paired with a dual-clutch automatic transmission.