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In a move aimed at boosting the local automotive industry, the Federal Government unveiled a N20 billion consumer credit fund on Tuesday. This initiative is designed to drive demand for vehicles assembled within the country, providing a much-needed push to the sector and encouraging more Nigerians to opt for locally produced automobiles.
The initiative, spearheaded by the Nigerian Credit Corporation (Credicorp), aims to cap interest rates for consumers at a single-digit percentage, ensuring more affordable financing for potential car buyers.
At the official event in Abuja marking the agreement between Credicorp and the National Automotive Design and Development Council (NADDC), Engr. Uzoma Nwagba, Managing Director and CEO of Credicorp, shared that the fund was created to address the challenges that consumers face when purchasing automobiles on credit.He highlighted that a robust credit economy is essential for improving citizens’ living standards while also driving job creation and wealth generation for Nigerians.
He reiterated the government’s commitment to backing the sector, ensuring its development and long-term viability. Furthermore, he emphasized that the N20 billion fund is just the start, with aspirations for an even larger fund should the initial initiative prove effective.
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Speaking earlier, the Director General, NADDC, Mr. Joseph Osanipin noted that improving the demand side of the automobile market is critical to the growth of the industry.
Osanipin pointed out that in most thriving economies consumers do not buy cars and other automobiles by paying for them in cash, adding that credit schemes allow consumers to purchase brand new automobiles of their choice.
He said the scheme which includes all forms of automobiles such as cars, vans, tricycles and motor bikes is open to every Nigerian and involves vehicle makers which manufacture or assemble their products completely in-country.
