The Federal Government's vehicle financing project is finally set to begin operations in January 2025.

The Director General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, revealed this at a recent media event.

The scheme is made to support Nigerians pay less for cars, by spreading the financial burden over a longer period.

According to Osanipin, N20 billion has been injected into the Nigerian Vehicle Financing Scheme in preparation for takeoff, and it will be disbursed via commercial and microfinance banks.

Once the scheme begins, citizens will be able to buy brand-new vehicles and pay the costs over a period of time.

Since the scheme was also made to support local car manufacturers, the financing options would focus only on made-in-Nigeria cars.

Jelani Aliyu, the former Director of NADCC, also stated that it would be structured so that Nigerians with stable monthly income can access it and get cars without using up their wealth.

Joseph Osanipin, added at the recent media briefing in Abuja that modalities will be put in place to ensure prompt and consistent repayment from beneficiaries.

While the scheme will not work with single-digit interest rates as earlier anticipated, Osanipin promised that efforts are being made to bring the rates down overtime to 9%.

The plans to start vehicle financing in Nigeria received some boost when the Nigerian Consumer Credit Corporation (CREDICORP) and National Automotive Manufacturers Association (NAMA) signed a N20 billion memorandum of understanding (MoU) consumer credit fund for locally-assembled automobiles.