NADDC D-G promises Nigerians loans for electric cars in 2022
Director General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, has pledged that Nigerians will begin to access loans to acquire electric cars as from next year.
He said in the next 10 years, about 50 per cent of vehicles on Nigerian roads would be electric vehicles produced or assembled in the country.
He disclosed that the NADDC is partnering Jaiz Bank to pioneer a programme where Nigerians could buy brand new cars, especially the electric or gas vehicles on loan and pay over a period of five years.
Aliyu disclosed this while fielding questions from journalists in Kaduna, saying Dangote, PAN, Honda, Elizade, Innoson and Lanre Shittu, among others invested over N500 billion in the industry as at 2019 to start assembling in the country.
He also said the automobile companies in the country, currently have the capacity to produce at least 400,000 vehicles yearly and that they currently employ over 50,000 Nigerians.
“In the 1970s and 1980s, Nigeria had Peugeot, Volkswagen, Anamco, Styre, Leyland and things were looking up to and the automotive industry was booming with a lot of potential. We had brand new vehicles and we knew nothing like imported used vehicles. Everyone could buy a brand new car.
“Peugeot alone had 40 per cent local contents and the parts were coming from Kaduna, Lagos, Nnewi and Jos. We were producing over 140,000 vehicles per year in Nigeria and people were buying them up. Then, in 1986, something bad happened. Because we were so dependent on crude oil, the price of crude oil dropped from $27 to below $10 and that threw the country into recession,” he stated.
He added that Nigerians, who could buy brand new Peugeot 504 cars could no longer afford them and as such Peugeot and Volkswagen had to close down and many of those producing vehicles left, because the market dried up.
“So this administration said something has to be done and the NADDC got approval of the Federal Executive Council (FEC) to implement the National Automotive Industry Development Plan, which charged with promoting local production, developing infrastructure, developing standard and market development, among other terms of reference.
“As result, we are working on a 10- year tax holiday for any company that will produce vehicles in the country. Also we there is 10 per cent import duty on vehicle parts imported into the country for assembly. And when vehicles are assembled here, they attract zero duty and zero levy,” he added.