Boost For Nigerian Auto Industry: N20bn Credit Scheme Launched For Locally Made Vehicles

Boost For Nigerian Auto Industry: N20bn Credit Scheme Launched For Locally Made Vehicles

In a major boost for Nigeria’s automotive industry, the Nigerian Consumer Credit Corporation (Credicorp) and the National Automotive Design and Development Council (NADDC) have unveiled a groundbreaking N20bn consumer credit fund…READ MORE…

aimed at making locally-assembled vehicles more accessible to Nigerians.

The announcement was made at a signing ceremony attended by representatives from nine local automobile manufacturers, including Innoson, Nord, CIG GAC, PAN, Mikano, Jets, NEV (electric), and DAG. The initiative marks a significant leap toward the development of Nigeria’s automotive sector.

At the event, NADDC Director-General, Joseph Osanipin, emphasized that the new credit scheme is designed to provide Nigerians with affordable financing options for purchasing new cars, tricycles, and motorbikes. The initiative is also expected to promote the growth of local vehicle production.

Osanipin stressed that the auto credit scheme aligns with President Tinubu’s New Hope agenda, which focuses on stimulating the economy through increased demand for auto products. He explained, “When we boost demand for auto products, we’re not just supporting the automotive industry; we’re also boosting sectors like steel and energy and creating jobs.”

He added that the initiative addresses the challenge many Nigerians face in saving enough money to buy new vehicles, noting, “You don’t need to save millions before purchasing a vehicle. With this credit scheme, Nigerians can access loans to generate wealth and repay over time.”

Under the N20bn scheme, eligible buyers can access credit at participating local auto sales points, making it easier to own Nigerian-made vehicles. Osanipin also explained that the credit will only apply to vehicles assembled locally, ensuring a focus on quality and affordability.

Credicorp’s Managing Director/CEO, Uzoma Nwagba, highlighted the initiative’s goal of offering financing options with interest rates as low as single digits. He pointed out that high interest rates have been a major barrier to car ownership, especially for the urban poor and middle class. “The fund is just the beginning of our efforts to combat transport poverty in Nigeria,” Nwagba said.

The initiative is part of Credicorp’s broader S.C.A.L.E. (Securing Consumer Access for Local Enterprises) project, which aims to stimulate demand for locally-produced goods and services, create jobs, and contribute to economic growth by reducing inflation. The fund is also designed to support local manufacturers and reduce reliance on unreliable used cars.

Credicorp’s initiative encourages Nigerians to switch to locally-assembled vehicles, offering a reliable alternative to second-hand cars. By making new vehicles more accessible, the program seeks to improve transportation and drive significant economic impact across the country.

Interested buyers can apply for the credit directly at participating manufacturers’ sales points, where they will receive guidance through the application process, including credit assessments and approval documentation.

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