The Nigerian Consumer Credit Corporation (CrediCorp) and the National Automotive Design and Development Council (NADDC) have signed a Memorandum of Understanding (MOU) to launch a N20 billion consumer credit fund aimed at making it easier for Nigerians to purchase locally manufactured vehicles on credit.
CrediCorp’s Managing Director/CEO, Engr. Uzoma Nwagba, emphasized that the initiative seeks to eliminate barriers to accessing credit, enabling Nigerians to acquire new locally produced vehicles and digital devices.
He shared these insights during the MOU signing ceremony in Abuja, adding that the government’s investment in this program is a strategic move, with the potential for further phases contingent on the success of the first.
Nwagba highlighted NADDC’s pivotal role in ensuring the smooth operation of the car loan program.
He said that under the arrangement, eligible individuals will receive vehicles, not cash, with payments made directly to the car dealers.
Repayment will be arranged through these dealers, with car manufacturers delivering the vehicles to loan recipients.
In his remarks, Nwagba noted that President Bola Ahmed Tinubu is keen on reviving the Peugeot and Dunlop brands in Nigeria, underscoring the administration’s focus on boosting the automotive sector. He further stressed that the CrediCorp initiative is not limited to automobiles, with other sectors set to benefit.
Joseph Osanipin, Director-General of NADDC, called the agreement a significant step in supporting Nigeria’s automotive industry.
He explained that the scheme aims to ensure Nigerians can access credit for new cars and motorbikes, but with the critical condition that they be locally manufactured.
Osanipin acknowledged the importance of timing, stating that “it is better late than never,” and emphasized that the scheme aligns with President Tinubu’s economic stimulus agenda.