Federal Government Launches N20 Billion Consumer Credit Fund to Boost Demand on locally-assembled vehicles
In a move to stimulate demand for locally-assembled vehicles, the Federal Government has introduced a N20 billion consumer credit fund. The initiative, spearheaded by the Nigerian Credit Corporation (Credicorp), aims to provide consumers with access to affordable financing, promising interest rates capped at single digits.
During the official launch and agreement signing between Credicorp and the National Automotive Design and Development Council (NADDC) in Abuja, Engr. Uzoma Nwagba, the Managing Director/CEO of Credicorp, emphasized the initiative’s goal of removing obstacles that hinder consumers from purchasing vehicles on credit. Nwagba highlighted that fostering a credit economy not only enhances the overall quality of life for citizens but also generates employment opportunities and wealth for Nigerians.
He reassured stakeholders of the government’s ongoing dedication to nurturing the sector for sustained growth, indicating that the N20 billion fund represents just the starting point, with plans for a more substantial fund contingent on the initial program’s success.
Earlier, Mr. Joseph Osanipin, the Director General of NADDC, shared insights on the importance of boosting consumer demand within the automotive market, noting it as pivotal for industry growth. He pointed out that in prosperous economies, consumers typically do not purchase vehicles outright but rather utilize credit options, which enable them to select new automobiles that fit their needs.
The credit scheme will encompass a variety of vehicle types, including cars, vans, tricycles, and motorcycles, and is open to all Nigerians. Importantly, the scheme targets vehicles manufactured or assembled entirely within Nigeria, promoting local production and economic development.
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