New auto policy: FG plans financing scheme to help Nigerians buy cars
A combination of palliative measures, including the
launch of a vehicle financing scheme is being planned by the federal
government, to make funds available to Nigerians, for the purchase of
vehicles under the new automotive policy, according to Olusegun Aganga,
minister of trade and investment.
The scheme which will be launched in the next four months,
involves collaboration of both local and foreign banks to make money
available to prospective car owners at a concessionary rate of 10
percent.
Aganga is optimistic that the policy would provide
opportuinity for banks to market prospective car owners, stressing that
government was committed to providing a conducive environment for
Nigerians to own cars assembled in the country.
The minister said the essence of the collaboration was to
solve the problem of high interest rates charged by banks and also to
ensure that Nigerians benefitted from the policy through employment
opportunities and access to affordable and quality automobiles.
Already,
about 12 companies including Nissan, Toyota, SCOA and Dana motors have
signified their intention to participate in the scheme which will usher
in made in Nigeria cars.
Also, the minister who briefed the press in Lagos on the
progress of the policy since the commencement of the implementation last
Tuesday, said payment for the vehicles would be spread over a period of
four years.
He further explained that used cars had not been banned but would henceforth attract higher tariffs.
Acknowledging that the country was blessed with a young
population and growing middle class, he said the policy was
comprehensive, with other areas such as market development, skills
acquisition, backward integration, quality and standard of the products,
as well as auto component parts.
He added that the essence was to stop the over $3 billion
spent annually on the imporation of cars, along with the adverse effects
on the nation’s foreign exchange.
He observed that under the new policy, tariff on the cars
is 35 percent for those that have made commitments to assembling them in
the country, through acquisition of land, equipment and other
infrasrtructure, adding that those that are bent on still importing used
cars would pay an additional levy of 37 percent.
He further said that rather than ban the importation of
used cars, as practiced in other countries operating similar policy,
while tariff on completely knocked down (CKD) vehicles is zero since
january this year, semi-knocked down (SKD) ones attract 5 percent and
SKD (two) attracts 10 percent.
He expressed satisfaction with what has been achieved
within this short period, and said government was happy with the level
of enthusiasm shown by over 12 aumobile companinies, including Nissan
and Toyota, among others that have signed on so far.
Also, he said the revival of Peugeot Automobile of Nigeria
earler in the week and assemblage of made in Nigeria cars by Nissan
recently, was a testimony to governement’s determination to ensure that
many more Nigerians own cars.
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