In a bold move to revitalise Nigeria’s automotive industry and stimulate economic growth, the Federal Government has inaugurated a ₦20 billion Consumer Credit Fund. The initiative, spearheaded by the National Automotive Design and Development Council (NADDC), was unveiled on Thursday in Abuja by the council’s Director-General, Joseph Osanipin.
Osanipin described the scheme as a milestone in Nigeria’s transition to a credit-driven economy, aimed at addressing critical challenges in the country’s automotive sector. He hailed the initiative as a demonstration of President Bola Tinubu’s commitment to economic transformation through market expansion and consumer empowerment.
“This initiative is a historic moment for Nigeria,” Osanipin remarked. “It represents a tangible step toward building a credit-based economy where consumers can access funds to acquire value-driven goods, including automobiles. While ₦20 billion might seem modest, it is a starting point, and we are committed to improving as we progress.”
Supporting Local Manufacturing and Credit Access
The fund, managed by the Nigerian Consumer Credit Corporation (CREDICORP), is designed to offer affordable financing options for purchasing locally manufactured vehicles, thereby fostering growth in the domestic automotive industry. Osanipin called on stakeholders, including banks, manufacturers, and financial institutions, to collaborate with NADDC in ensuring the scheme’s success.
“This is a collective effort,” he emphasised. “For the programme to succeed and evolve, cooperation among stakeholders is essential, particularly in ensuring proper utilisation and repayment of the credit facility to sustain its impact.”
Empowering Nigerians Through Affordable Credit
Uzoma Nwagba, Managing Director of CREDICORP, reiterated the corporation’s commitment to reducing transportation challenges and supporting citizens. He noted the initiative’s long-term goal of providing single-digit interest rates for individuals with solid credit histories.
“A significant barrier to mobility in Nigeria has been the high cost of credit,” Nwagba stated. “Under President Tinubu’s leadership, we aim to progressively lower borrowing costs as Nigerians build trust through consistent repayments.”
A Catalyst for Industry Growth
The initiative also received backing from the President of the Nigerian Automotive Manufacturers Association (NAMA), Bawo Omagbitse, who underscored the importance of transforming the automotive industry.
“This credit fund has the potential to serve as a catalyst for the broader growth of our sector,” Omagbitse said. “NAMA members are ready to collaborate with all stakeholders to create a balanced industry that drives the anticipated transformation.”
As part of the scheme’s rollout, NADDC and CREDICORP signed a Memorandum of Understanding (MoU), marking the commencement of this ambitious programme.
The Consumer Credit Fund represents a pivotal step in addressing Nigeria’s mobility challenges and stimulating the local manufacturing sector, aligning with the government’s vision for a credit-enabled economy.
