The National Automotive Design and Development Council and the African Export-Import Bank have announced plans for the development of the Nnewi Auto Industrial Park.
The NADDC stated that the goal was to create a mutually beneficial relationship, where Afreximbank would provide funding and possibly other resources, while it oversees the planning, development, and execution of the Nnewi Auto Industrial Park.
It stated in a release that the park aimed to provide a centralised location for the manufacturing and assembly of automotive components, vehicles, and related products.
According to a statement, the partnership occurred when the Director-General of National NADDC, Joseph Osanipin, visited the Regional Chief Operating Officer of Afreximbank, Eric Intong.
It said the purpose of the visit was to solicit collaboration with the Afreximbank in financing the council’s projects, especially the Nnewi Auto Industrial Park.
Part of the statement reads, “At the meeting, Osanipin highlighted the significance of the Nnewi Auto Industrial Park, describing it as a new solution to the challenges confronting parts manufacturers in Nigeria, which will also invigourate the automotive sector and propel Nigeria towards a future of enhanced job creation and economic prosperity.”
Intong expressed his enthusiasm for kickstarting the Nnewi Auto Industrial Park and also assured of Afreximbank’s readiness for a productive partnership with the council.
In Nigeria, the auto financing landscape faces significant hurdles, impacting access to new vehicles for middle-class individuals.
Autochek, an auto financing firm, offers car loans to Nigerians for both foreign used cars and brand-new cars, with partners including Ecobank, Access Bank, Stanbic, and other banks.
The FirstBank of Nigeria, Access Bank, FCMB, Cars45/Jiji, Creditville, and UBA also provide auto loans with unique financing solutions tailored for brand-new vehicles and used cars.
Despite these efforts, banks and financial institutions have stringent lending criteria or offer limited options for vehicle loans.
As a result, many individuals find it challenging to secure financing for car purchases.