The Nigerian Consumer Credit Corporation and the National Automotive Design and Development Council 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 on Thursday, the NADDC Director General, Joseph Osanipin, said the event marked a significant step towards promoting Nigeria’s automotive industry.
He emphasised 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.
He also stated that the event was to enlighten the public on the process, criteria and guidelines to be enlisted as part of the beneficiaries.
“The vehicle assemblers are here. But the credit will be given to the consumer. The assembler will supply the product that the consumer is going to buy. So we need to get them ready so that they can start the production and then whatever they are producing, they will have the consumer in mind. Because if the consumer is not happy with their product, they are not going to accept the credit for that product. The credit will only be for Nigerian-made vehicles,” he added.
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 programme forms a part of Credicorp’s broader project S.C.A.L.E. (Securing Consumer Access for Local Enterprises), which seeks to channel consumer credit into the purchase of goods and services from local vendors and manufacturers.
The corporation reiterated that purchasing locally-made vehicles not only supports job creation but also contributes to economic growth by reducing inflation.
The corporation said the initiative seeks to channel consumer credit to the purchase of goods and services from local vendors and manufacturers.
The Credicorp DG explained that interested buyers of vehicles from participating manufacturers can apply for consumer credit directly at their sales points. At these locations, customers will receive guidance on the application process, including assistance with credit assessment and approval documentation.
The programme encourages Nigerians to embrace locally-assembled vehicles, with the corporation advocating for a transition from unreliable used cars to brand-new vehicles.