Reps Move to Boost Affordable Vehicle Financing, Strengthen Nigeria’s Auto Industry

The House of Representatives Committee on Industry has reaffirmed its commitment to improving access to affordable vehicle financing for Nigerians, as part of efforts to revitalise and strengthen the nation’s automotive industry.

The committee, led by its Chairman, Dr. Enitan Badru, made this pledge during an oversight visit to the National Automotive Design and Development Council (NADDC) and several vehicle assembly plants in Lagos, including GAC Motors, DAG Industries Nigeria Limited (Bajaj), and Wandel International Nigeria Limited (Simba Group).

After inspecting the GAC Motors assembly plant, Dr. Badru expressed concern over the persistent challenge of high vehicle prices and the limited availability of financing options for ordinary Nigerians. He observed that, despite progress in local assembly operations, affordability remained a major obstacle to increasing vehicle ownership in the country.

“The major problem is affordability,” Badru said. “Even when vehicles are assembled locally, high interest rates—ranging from 24 to 37 per cent—make it nearly impossible for the average Nigerian, including senior public servants, to purchase them through bank financing. We must collaborate with the Central Bank, commercial banks, regulators, and assemblers to address this.”

He noted that the committee’s visit was aimed at identifying key challenges within the auto sector and proposing legislative measures to promote local assembly, curb the importation of substandard vehicles, and make new cars more accessible to citizens.

Commending the NADDC, the Standards Organisation of Nigeria (SON), and the Manufacturers Association of Nigeria (MAN) for their efforts, Badru emphasised that addressing pricing and financing issues is vital to making locally assembled vehicles competitive.

In his remarks, the Director-General of the NADDC, Joseph Osanipin, said financial institutions must play a pivotal role in driving vehicle ownership in Nigeria. “Globally, banks provide about 90 per cent of auto financing, but in Nigeria, most buyers pay cash upfront — a model that’s unsustainable,” he said.

Osanipin added that while initiatives such as CrediCorp have contributed to auto financing, greater collaboration with banks is necessary. He also revealed that the NADDC is working with assemblers to promote hire-purchase schemes and other flexible payment models to make vehicles more affordable.

The lawmakers said insights from the oversight visit will guide future legislative interventions to enhance local production, improve access to credit, and ensure Nigeria’s automotive policy delivers real benefits to both consumers and industry stakeholders.