Following Federal Government’s new N7.5 billion credit Auto purchase scheme, automotive experts have called on the government to monitor the disbursement of the fund by the National Automotive Design and Development Council to ensure transparency.
The FG, through NADDC, announced plans to launch a N7.5billion credit purchase scheme at a low interest rate with a South African company, to give opportunities to Nigerians to purchase locally-assembled vehicles.
A mechanical engineer, Mr. Bola Adeniji, explained that if such fund was not properly monitored by government, it might be diverted by some corrupt members of the council.
According to him, details and requirements for qualification should be published in national dailies for transparency purpose.
“A lot of credit and bailout packages introduced by the government have not been received at the grass root in the past and that is the reason they have not made the expected impact on the economy. If the FG is determined to attract people to Madein- Nigeria cars, the interest rate and the amount an individual is entitled to, should be made public in order to avoid a situation where some corrupt officials introduce unrealistic conditions to the scheme,” he stated.
An accountant, Mr. Ayodeji Oke, however, expressed concern over the possibility of the fund aiding patronage of locally manufactured vehicles.
According to him, no discerning Nigerian would obtain a credit to purchase a vehicle now that the recession is biting hard on the economy.
“FG, under the leadership of President Goodluck Jonathan, spent over N2 trillion on intervention funds in different sectors of the economy between 2010 and 2012 and the impact have not been felt on the economy. Over N10 billion was reportedly disbursed to companies from the National Automotive Fund for the production of vehicles, motor cycle and bicycle tyres but has the government verified how the money was spent before releasing another fund?” he inquired.
However, the Director, Policy and Planning, NADDC, Mr. Luqman Mamudu, assured Nigerians that the council would contribute the amount at a low interest rate, with counterpart funding from a company in South Africa, to help Nigerians have access to affordable new vehicles.
“This is what we have been working on for the past two years. We looked at the available access to asset financing in the country and we found out that the high interest rate is frustrating the purchase of new vehicles. This is the gap we want to fill. We are currently working with a company in South Africa, which has footprints in eight African countries, where they have developed a commercial and financial model to recoup their investment.
“We are in discussion with the Central Bank of Nigeria to originate the loans and float it, so that it will be attractive for investors to partake in the scheme.
“Going forward, this will further bring down the interest rate. This facility will be given to people that have the capacity to buy cars because we expect that they will have good credit to purchase a car. If you go to America, over 80 per cent of car purchases are done through loans. The credit purchase scheme will assist the operators to help the masses,” he added.
