Lagos: 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).

According to News Agency of Nigeria, 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.

Dolapo-Badru highlighted the affordability issue, noting that even a director on grade level 17 struggles to purchase a car. He pointed out that commercial banks currently offer vehicle loans at double-digit rates between 24 and 38 per cent and described the situation as unsustainable and counterproductive. He urged a review involving the Central Bank, regulators, and assemblers to enable Nigerians to purchase new cars instead of importing used ones.

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 mentioned that the N20 billion intervention fund created under the CREDICORP scheme was a seed capital and insufficient to meet the sector’s needs. Osanipin explained a new NADDC initiative where 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.