The Federal Government has launched a ₦20 billion Consumer Credit Fund to stimulate economic growth and support the development of Nigeria’s automotive sector.
Speaking at the unveiling event in Abuja, Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC), described the initiative as a transformative step toward building 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.
The initiative’s launch included the signing of a Memorandum of Understanding (MoU) between NADDC and CREDICORP, marking the official commencement of the program.
