KEY POINTS
- $12.4 million fund provides single-digit loans to boost sales of Nigerian-assembled vehicles, motorcycles, and tricycles starting January 2025.
- Initiative aims to reduce transport poverty, drive auto industry recovery, and foster steel, plastics, and energy sector growth.
- Manufacturers must ensure quality and competitiveness as consumers freely choose among locally made vehicle options.
Nigeria’s government has initiated a N20 billion ($12.4 million) consumer credit fund aimed at increasing the demand for locally assembled automobiles.
The single-digit loan initiative is expected to commence in January 2025 to facilitate consumers purchasing Nigerian-made vehicles, motorcycles and tricycles.
Oluwemi Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC) announced that the program is part of President Bola Ahmed Tinubu’s economic reform agenda.
“This initiative will drive demand for locally assembled vehicles, benefiting sectors like steel, plastics and energy while generating employment,” Osanipin said during a memorandum of understanding (MoU) signing with automotive manufacturers in Abuja.
Framework and execution
The credit scheme, to be managed by the Nigerian Consumer Credit Corporation (CREDICORP), targets enhancing affordability for Nigerian citizens.
Engr. Uzoma Nwagba, Managing Director/CEO of CREDICORP, stated “This fund is just the beginning of our commitment to the auto sector. It aims to reduce transport poverty and provide citizens with affordable mobility options.”
Osanipin noted that the scheme requires manufacturers to ensure quality and competitiveness, as customers have the liberty to choose their preferred Nigerian-made products.
Industry impact
Stakeholders anticipate the scheme will transform Nigeria’s struggling automotive sector. Mr. Bawo Omagbitse, President of the Nigerian Automotive Manufacturers Association (NAMA), lauded the initiative as a potential game-changer.
“The auto industry needs this revival. It’s currently suffocating, but this bold step offers a pathway to recovery and growth,” Omagbitse remarked.
The initiative is expected to encourage local manufacturing, reduce reliance on imported vehicles, and align Nigeria’s auto industry with global standards.
Economic catalyst
Beyond the automotive sector, the fund is poised to impact various industries. “Promoting auto products stimulates the steel, plastics, and energy sectors, creating widespread economic benefits,” Osanipin said.
With its focus on consumer credit accessibility, job creation, and industrial growth, the $12.4 million fund is being hailed as a crucial step toward revitalizing Nigeria’s automotive sector and fostering broader economic development.
