The House of Representatives Committee on Industry has resolved to pursue legislation for single-digit interest rates to enable more Nigerians to purchase new cars, tricycles, and motorcycles through affordable credit schemes.
The resolution followed an oversight visit on Tuesday to automobile, tricycle, and motorcycle assembly plants in Lagos in collaboration with the National Automotive Design and Development Council (NADDC).
The committee, led by its Chairman, Dr Enitan Dolapo-Badru, visited the facilities of Dag Industries Nigeria Ltd., Simba TVC, and CIG Motors on Tuesday in Lagos, as part of its nationwide inspection of local manufacturers.
The lawmakers stressed the need for stronger bank participation in the Federal Government’s credit financing initiatives to curb the importation of used vehicles and promote a cleaner environment.
They also emphasised the importance of local content development, spare parts production, and affordable financing options for citizens.
“Now, when there’s a price tag on a car, can the average man afford it? Even a director on grade level 17 can not walk in and buy a car,” Dolapo-Badru told newsmen during the visit.
He lamented that commercial banks currently offer vehicle loans at double-digit rates between 24 and 38 per cent, describing the situation as “unsustainable and counterproductive”.
“We need to revisit this through the Central Bank, regulators, and assemblers so that Nigerians can buy new cars rather than import scraps,” he said.
The committee pledged to work with financial institutions and industry regulators to ensure affordable credit facilities and price regulation in the automobile sector.
Dolapo-Badru commended NADDC, the Standards Organisation of Nigeria (SON), and the Manufacturers Association of Nigeria (MAN) for their roles in supporting industrial growth and promoting local vehicle production.
Mr Joseph Osanipin, Director-General of NADDC, called for stronger collaboration from banks and private investors to sustain the government’s ongoing consumer credit initiatives.
He said the N20 billion intervention fund created under the CREDICORP scheme was a seed capital and not sufficient to meet the sector’s needs.
“N20billion cannot do it all. No government anywhere can finance the automobile industry alone. Globally, financial institutions drive auto financing by providing up to 90 per cent of the cost,” Osanipin said.
He explained that under a new NADDC initiative, Nigerians could make an initial five per cent down payment to assemblers and take delivery of vehicles while paying the balance through a credit guarantee arrangement. (NAN)