Stakeholders Demand Low-Interest Loans, Longer Tenors for Vehicle Ownership Affordable
Bennett Oghifo The Lagos Chamber of Commerce and Industry (LCCI) and automotive stakeholders have called for affordable vehicle financing to replace fuel subsidy as a means of easing Nigeria’s mobility
Auto industry leaders have urged affordable vehicle financing to replace fuel subsidy as a solution to Nigeria's mobility crisis, allowing low- and middle-income Nigerians to own vehicles. At the LCCI/NADDC Automobile Symposium, Dr Femi Eguaikhide, Chairman of the LCCI Auto and Allied Sector Group, highlighted the need for lower interest rates and longer loan terms to make vehicle ownership accessible.
He suggested options like N50,000 monthly payments for keke drivers, leveraging vehicle telematics to assess creditworthiness, and financing for CNG conversions, locally assembled electric and hybrid vehicles, and mass-transit buses. Eguaikhide cautioned against worsening import dependency if credit was used solely to purchase used vehicles, advocating for financing to promote local production instead.
Chief (Sir) Anselm Ilekuba, Chairman and CEO of Cedric Masters Group, also called for a shift from subsidy-driven mobility to a vehicle financing system that supports local automotive industrialisation. He proposed the National Automotive Bank, longer tenor financing for locally assembled vehicles, industrial credit for component manufacturers, and stronger localisation of automotive components.
Ilekuba emphasized that affordability should lead to greater domestic production, reducing dependence on imported vehicles and creating jobs. Stakeholders aim to make vehicle ownership affordable while ensuring that increased access to financing translates into domestic production, not just more imported vehicles.
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