The federal government has inaugurated a N20 billion Consumer Credit Fund initiative aimed at stimulating the economy and fostering growth in the automotive sector.

The director-general of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, made this known during the unveiling of the initiative on Thursday in Abuja.

Mr Osanipin said that the event marked a significant step toward transitioning Nigeria into a credit-driven economy.

He said that the move would help in addressing some major challenges in the country’s automobile industry.

He said that the initiative was a practical demonstration of the federal government’s commitment to economic transformation through market expansion and demand stimulation.

He commended President Bola Tinubu’s leadership for championing the agenda to reinvigorate the economy.

“This initiative is a historic moment for Nigeria.

“It represents a tangible step toward building a credit-based economy where consumers can access funds to acquire value-driven goods, including automobiles.

“The N20 billion might seem small, but it is a starting point, and we are committed to learning and improving as we progress,” he said.

Mr Osanipin said that the credit facility, facilitated by Nigerian Consumer Credit Corporation (CREDICORP) would provide affordable financing for consumers to purchase automobiles, thereby promoting local manufacturing and expanding the supply chain.

He emphasised the collaborative nature of the scheme, urging stakeholders, including banks, manufacturers, and other financial institutions, to align their processes with NADDC’s vision.

“This initiative is a collective effort. The success of this programme depends on the cooperation of all parties; Credit Corp, the auto sector, financial institutions, and, most importantly, the consumers.

“We must work together to ensure that this scheme not only works, but also evolves to meet future needs,” he said

The director- general also stressed the importance of proper utilisation and repayment of the credit facility to maintain the sustainability of the scheme.

He called on stakeholders to actively support the initiative, which according to him, will serve as a catalyst for the broader adoption of credit systems in Nigeria.

Also speaking, the managing director of CREDICORP, Uzoma Nwagba, reaffirmed the corporation’s commitment to reducing transportation challenges, empowering citizens, and supporting the local automotive sector.

He restated the organisation’s mission to make financing more accessible and affordable for Nigerians, particularly in the area of vehicle ownership.

“Through partnerships with financial institutions, the initiative aims to provide cheaper credit, with a long-term goal of achieving single-digit interest rates.

“These rates will target individuals with strong credit histories, encouraging financial institutions to confidently support borrowers with access to capital and guarantees,” he said.

Acknowledging the current economic reality of high interest rates in Nigeria, the managing director emphasised that this had been a significant barrier to accessing credit for mobility.

He, however, said that under the mandate of Tinubu and his passion for enabling citizens to access life-enhancing goods, the programme sought to catalyse a gradual reduction in borrowing costs. 

He expressed optimism that rates would continue to decrease as borrowers build trust through consistent repayment.

The president, Nigerian Automotive Manufacturers Association (NAMA), Bawo Omagbitse, said that the automotive industry required major transformation.

Mr Omagbitse said that this was important to move the sector to a level where this credit would become an accelerator for greater things to come.  

He expressed the willingness and collaboration of NAMA members to work with stakeholders to create an industry with balance that would engender the anticipated growth.

The  NADDC and the CREDICORP signed a Memorandum of Understanding (MoU) to kick off the initiative. 

(NAN)