The Nigerian Consumer Credit Corporation and the National Automotive Design and Development Council (NADDC) have unveiled a N20bn consumer credit fund to enable Nigerians to purchase locally assembled vehicles.
The initiative was announced during a signing event featuring nine local automobile manufacturers including Innoson, Nord, CIG GAC, PAN, Mikano, Jets, NEV (electric), and DAG.
Speaking at the event, Joseph Osanipin, Director-General NADDC, expressed his gratitude to President Ahmed Bola Tinubu’s New Hope Agenda aimed to stimulate the economy and transition Nigeria to a credit- oriented economy.
He emphasized the programme’s aim to empower Nigerians with accessible credit options for owning new cars, tricycles, and motorbikes while fostering the growth of local vehicle production.
The DG also encouraged Nigerians to engage directly with the listed manufacturers to purchase vehicles and eliminate the hassle of dealing with unreliable mechanical repairs.
He said: “The auto credit scheme is coming up now because it’s better late than never. When the President came in, as part of the New Hope agenda, he promised to stimulate the economy.
“And there is no better way to stimulate the economy than to provide credit that will boost and increase demand for auto products. Why do we need to increase the demand for auto products? Because auto products are cut across all sectors of the industry. When you promote auto, you are promoting the steel industry. You are promoting the energy sector. And you are generating a lot of employment.
“And that’s why it is very important, the citizens, they want to buy vehicles. But it’s very difficult nowadays for you to save enough to buy a new vehicle, even a motorcycle or tricycle. We are saying you don’t see the need to save up to N20m or N30m before they ride a vehicle. You just need to be able to access credit, use it to generate wealth and then you can pay back.”
“Empowering Nigerians with credit access is at the core of this initiative. Credicorp and NADDC’s N20bn consumer credit fund aims to make owning locally-assembled vehicles easier, while also bolstering Nigeria’s automotive sector. Eligible buyers can apply at participating local auto sales points,” Osanipin noted.
On his part, the Managing Director/Chief Executive, Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the initiative is to make auto credit financing available and accessible.
He added that the credit facility will be obtained close to a single-digit interest rate.
He said, “So our job is to make the financing more available and more easily accessible meaning that the rates are also to enable Nigerians to have cheaper credits. And for this particular intervention, we are looking at going over time, targeting a single-digit rate to enable Nigerians to purchase these vehicles.
“We know that interest rates are quite high and remain one of the discouraging factors, economic reality. It also makes it difficult to access credit for mobility. The fund that we are launching today is just a start. It’s a start to show the President’s commitment to this industry and allow people to access, and get out of transport poverty. Transport poverty is a thing in Nigeria, where a lot of people, especially people in the cities, what you call the urban poor or urban middle class, struggle with access to good transportation. So, you see all the bus stops and you see all the people standing there.
“But if we take more people and give them their vehicles, Keke, motorbikes, then you’re reducing the impact of transportation poverty. This is the beginning of a long journey and we are happy to be in partnership with the NADDC. We are here to just support with demand generation so that more Nigerians can demand these vehicles and we can support the industry as a whole.”
The initiative unveiled with a remarkable signing of Memorandum of Understanding (MoU) between NADDC and CREDICORP also recorded the presence of NAMA President Mr. Bawo Omagbitse, Managing Directors and representatives from Nigeria’s leading local automobiles manufacturers such as Innoson, PAN Nigeria, Nord Motors, CIG (GAC), Mikano, Jet motors, NEV, DAG, Anammco, Elizade motors, Wandel International limited, Elizade, JAC Limited etc
Prospective buyers interested in local brands of vehicles can access the Consumer Credit Fund at the sales point of the participating local auto assemblers. Some trained personnel stationed at the various sales point will guide customers through the application process, ensuring all necessary documentation for credit assessment and approval.
This historic partnership signifies a pivotal step towards transforming Nigeria’s economy, allowing Nigerians access to own brand new made-in-Nigeria vehicles.
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