There has been a proposed N20 billion consumer credit fund by the Nigerian Credit Corporation (CreditCorp) and the National Automotive Design and Development Council (NADDC) to boost demand for locally made new vehicles.

However it has received so many reactions - both good and bad.

According to some stakeholders in the auto industry, the finance scheme came a little too late - after so many years of neglecting the local auto industry.

Findings indicate that the proposed N20 billion can buy less than N600 brand-new cars at N35 million per vehicle.

For some local vehicle makers like Innoson Vehicle Manufacturing (IVM), prices of new vehicles are between N25 to N32 million, depending on the model.

The N20 billion consumer credit fund was also proposed to stimulate the desire for brand-new cars as Nigerians have become accustomed to fairly used ones.

A fairly used vehicle purchased for N3 million three years ago now costs over N10 million due to the high FX rate.