The Federal Government of Nigeria, in partnership with the Nigerian Consumer Credit Corporation (CrediCorp) and the National Automotive Design and Development Council (NADDC), has unveiled a groundbreaking N20 billion consumer credit fund aimed at empowering Nigerians to purchase locally-assembled vehicles.
This initiative, launched in Abuja, represents an important step toward boosting the nation’s economy through credit-based consumption while supporting local industries.
At the heart of the initiative is a Memorandum of Understanding (MoU) signed by CrediCorp, NADDC, and the Nigerian Automotive Manufacturers Association (NAMA).
The agreement aims to streamline the loan process, ensuring Nigerians can access credit to purchase automobiles, including cars, motorcycles, and tricycles.
CrediCorp’s Managing Director/CEO, Uzoma Nwagba, emphasized that this initiative addresses a crucial gap in Nigeria’s credit system, which is essential for economic growth. “No country can develop without a functional credit system,” he remarked, adding that the program will kick off early next year with an ultimate goal of achieving single-digit interest rates.
Nwagba explained that while the N20 billion fund might appear modest, it serves as a pilot phase to test the scheme’s impact. “This is a catalyst. If we succeed in enabling people to acquire vehicles, track their impact on other industries, and create jobs, it will pave the way for more funding,” he said.
The loan scheme is designed to prioritize Nigerians with strong credit histories, reducing the burden of saving vast sums to purchase vehicles outright.
By enabling credit access, the program seeks to eliminate “transport poverty,” allowing individuals to improve mobility and contribute to the economy while repaying the loans gradually.
Dr. Joseph Osanipin, Director General of NADDC, highlighted the scheme as a key component of President Bola Tinubu’s economic agenda.
He noted that increased demand for locally-assembled vehicles would drive growth in multiple sectors, including steel, plastics, and energy, while generating substantial employment opportunities.
“Promoting the automotive industry impacts every sector, from manufacturing to energy,” Osanipin said. “Our citizens need access to credit. Globally, individuals don’t save millions to buy vehicles; they rely on credit schemes. This initiative aligns Nigeria with international best practices.”
Osanipin also stressed the importance of consumer satisfaction in driving the success of locally-assembled vehicles. “Assemblers must prioritize quality because consumers now have choices,” he noted. “The vehicles must meet the needs of Nigerians while being affordable and reliable.”
President of NAMA, Bawo Omagbitse, praised the initiative, describing it as a lifeline for an auto industry currently facing significant challenges. He expressed optimism that the scheme would revitalize the sector and attract further investments.
CrediCorp identified the automotive sector as one of the five priority areas under its recently launched Project S.C.A.L.E (Securing Consumer Access for Local Enterprises). This initiative aims to channel consumer credit to purchase goods and services from local manufacturers, stimulating economic growth.
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This loan scheme marks a decisive effort by the Nigerian government to address the dual challenges of mobility and local industry growth. With CrediCorp’s leadership and the support of NADDC and NAMA, the program seeks to empower Nigerians, create jobs, and establish a thriving market for locally-assembled vehicles.
As preparations continue for its launch, Nigerians can anticipate a future where access to affordable and reliable transportation becomes a reality.
