In response to the crippling effects of coronavirus pandemic on many businesses, the Federal Government, through the National Automotive Design & Development Council (NADDC), has rolled out a stimulus package for the local automotive industry. 

Speaking with The Sun over the weekend, the Director-General of NADDC, Jelani Aliyu, said the council has secured approval from the Bank of Industry (BOI) to reduce the interest rate on loans taken from it by investors in the local auto industry by two percent across the board.

This is in addition to the deferment of the re-payment of such loans {the principal} to the BOI by three months.

The NADDC DG disclosed that the approval had been communicated to the secretariat of the Nigerian Automobile Manufacturers Association (NAMA), expressing the hope that the incentives would go a long way in reducing the burden on the stakeholders.

The gesture is also expected to enhance a smooth, unhindered and continuous growth of the Nigerian automotive sector.

Related News

He also commented on the modalities for extending the incentives to the industry players, how the NADDC would identify genuine local automotive and allied components assemblers and what shape the stimulus package would take.

He stated, “In line with the Federal Government’s directives, what we are primarily doing is offering palliatives to those stakeholders that have already qualified and benefitted from the NADDC loans through the Bank of Industry (BOI).”

NADDC explained in a letter that the reduction of applicable interest rate by 2 percent is for a period of one year with effect from April 1, 2020 to March 31, 2021 – meaning that at the expiration of the 12-month period, the applicable interest rate on each facility shall revert to its initial approved rate as stated in each customer’s respective Loan Offer Letter.

It said this condition would, however, be subject to the full liquidation of all interest charges as of March 31st, 2020.