The Federal Government has introduced a ₦20 billion Consumer Credit Fund aimed at boosting economic growth and fostering the development of Nigeria’s automotive industry.
The National Automotive Design and Development Council’s (NADDC) Director-General, Joseph Osanipin, spoke at the unveiling event in Abuja and called the project a revolutionary move in the direction of creating a credit-driven economy.
“This initiative marks a significant milestone in addressing challenges within the automotive industry and driving economic transformation through market expansion and demand stimulation,” Osanipin said, commending President Bola Tinubu for championing the program.
He explained that the fund, managed by the Nigerian Consumer Credit Corporation (CREDICORP), aims to provide affordable financing for consumers to purchase locally manufactured vehicles, thereby strengthening the supply chain and boosting local production.
Osanipin called on banks, manufacturers, and financial institutions to align their operations with the NADDC’s vision, emphasizing the collaborative nature of the initiative.
“This program’s success depends on the active participation of all stakeholders—financial institutions, manufacturers, and consumers. Together, we can ensure its effectiveness and adapt it to meet future needs,” he stated.
He also stressed the importance of responsible credit use and repayment to maintain the scheme’s sustainability, urging all stakeholders to support the initiative as a catalyst for broader credit adoption in Nigeria.
CREDICORP’s Managing Director, Uzoma Nwagba, reaffirmed the organization’s commitment to making vehicle ownership more accessible through partnerships with financial institutions. He expressed optimism about reducing borrowing costs, targeting single-digit interest rates for individuals with strong credit histories.
“By lowering credit costs and empowering citizens, this initiative seeks to address Nigeria’s transportation challenges while boosting the local automotive sector,” Nwagba said, acknowledging the current economic hurdles posed by high interest rates.
The President of the Nigerian Automotive Manufacturers Association (NAMA), Bawo Omagbitse, praised the program as a potential game-changer for the industry. “This initiative has the potential to transform the sector and catalyze further growth,” Omagbitse noted, reaffirming NAMA’s commitment to collaboration with stakeholders.
As part of the initiative’s debut, NADDC and CREDICORP signed a Memorandum of Understanding (MoU), officially starting the program.
