The National Automotive Design and Development Council (NADDC) has floated N7.5 billion interest free funds to provide loans for Nigerians to buy locally made vehicles.
The facility is on the platform of the Vehicle Credit Acquisition Scheme introduced to help people purchase made in Nigeria vehicles.
The Director of Policy and Planning of NADDC, Mr Luqman Mamudu, unfolded the plan on Wednesday in Lagos.
He said the money would be backed with a counterpart funding from a company in South Africa.
The South African company, he explained, would provide more of the funds for the scheme in conjunction with the African Development Bank (AfDB).
Mamudu said that Nigeria had the capacity to produce 384,000 units of vehicles annually.
“Unfortunately, the country only produced 25,000 units in 2015.
“We have been in talks with the Central Bank of Nigeria (CBN) to also source for funds to support the credit scheme being planned by the Federal Government in conjunction with our council.’’
The aim of the project, he said, was to reduce the influx of used cars which have choked the market.
Three testing laboratories for locally-assembled cars, tractors and heavy-duty vehicles are to be established in Nigeria.
“We have not reached our potentials as a nation for locally-assembled vehicles, but we have the capacity to do so,” Mamudu said.
According to Vanguard newspaper, the council is planning to partner the Nigerian Customs Service to stop importation of used cars through the borders.
The Director-General of the NADDC, Mr Aminu Jalal, had in June said that the council was targeting 40 per cent local content development for the automobile sector by 2021.
Nigeria now has the capacity to produce 384,000 units of vehicles yearly, but only 25,000 were being produced.