Nigeria: Govt disburses 11b naira to vehicle production outfits

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Lagos, Nigeria (PANA) – The Nigerian government has disbursed over 11 billion naira (US$66.6 million) to 33 companies in vehicle production business to jump start the newly-introduced automotive policy, the local media reported Wednesday.

The report quoted Director General of the National Automotive Council Aminu Jalal as telling journalists in Abuja, the nation’s capital, that only five of the companies are assembly plants.

Others are all local content handlers that would engage in the production of vehicle components.

He said the move would create a window for an affordable financial scheme for the companies to produce affordable vehicles for Nigerians, such that they would be able to buy a new vehicle assembled in the country for as low as 1.7 million naira (US$10,300).

Nigeria expended US$4 billion on importation of vehicles in 2010 and US$3.5 billion in 2012, apart from the money spent on importation of tyres and spare parts.

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