CREDICORP, NADDC flag off N20bn consumer credit fund for the purchase of locally-assembled automobiles President Bola Ahmed Tinubu has given a marching order to Nigerian Consumer Credit Corporation (CREDICORP) to ensure the return of Peugeot automobiles and Dunlop tyres to the country as Nigeria joins nations with credit facilities for the purchase of brand-new automobiles....CLICK HERE TO READ THE FULL ARTICLE➤
Managing Director/ CEO of CREDICORP Engr. Uzoma Nwagba confirmed Tinubu’s directive to his agency on Thursday at the launch and signing of a Memorandum of Understanding ( MoU) for N20 billion consumer credit fund for the purchase of locally-assembled automobiles in Abuja between CREDICORP, NAMA and NADDC.
Nwagba said he had gone to brief the President on the progress of the agency, with reference to the N20 billion credit fund for the purchase of locally assembled automobiles by Nigerians.
” The President told me: I want to see Peugeot, Dunlop and others come back to the country “, he quoted the president saying.
He said CREDICORP is creating a scenario obtained in advanced countries where people get car automobiles at a single-digit interest rate. CREDICORP for auto purchase will commence in January 2025.
Nwagba said his agency will engage automobile plants in the country working with the National Automotive Design and Development Council ( NADDC), and the Nigerian Automotive Manufacturers Association ( NAMA) to drive down prices of vehicles at an affordable cost for Nigerians.
” We are trying to make the financing more available and more easily accessible. In terms of the rates also, to enables Nigerians to have cheaper credits. We work with financial institutions, and for this particular intervention, we are looking at going over time, targeting a single-digit rate to enable Nigerians to purchase these vehicles.
“For people who have very strong credits, and who show a good credit history, the financial institutions are taking a bet and confidence in them for those who are accessing our capital that we are providing, as well as those who are accessing our guarantees”.
” We know that interest rates are quite high and are one of the discouraging factors and that is the economic reality of Nigeria; one that obviously makes it more difficult to access credit for mobility is the high interest rates that we have now.
“But given the mandate of Mr President and his passion for enabling people to get cheaper credit to be able to access these life-enhancing goods, we are targeting lending on a single-digit interest rate. But for now, you can see that our credit, enabling the banks and microfinance banks are the cheapest in the country.
So, it continues to go down as much as people show a good credit history. And the fund that we are launching today is just a start. It’s a start to show a commitment to this industry.
“It’s a start to show the commitment of the President. And it’s a start to actually catalyze credits and allow people to access, and get out of transport poverty. Transport poverty is a thing in Nigeria, where a lot of people, especially people in the cities, what you call the urban poor or urban middle class, struggle with access to good transportation”, he said.
In a remark, Director General/CEO of National Automotive Design and Development Council( NADDC) Oluwemimo Joseph Osanipin said the auto credit scheme came up now because “it’s better late than never”.
” We are happy when the President came, it’s part of the New Hope Agenda to stimulate the economy. And there is no better way to stimulate the economy than to provide credit that will boost and increase the demand for auto products. Why do we need to increase the demand for auto products? Because auto products cut across all sectors of the industry.
“When you promote auto, you are promoting the steel industry; you are promoting the plastic industry, and you are generating a lot of employment; you are promoting the energy sector, and that’s why it is very important.
“The citizens want to buy vehicles. But it’s very difficult nowadays for you to save enough to buy a new vehicle. We need a credit scheme to work, that’s the way it operates all over the world. You don’t see people that would need to save up to N20 million, N30 million before they ride a vehicle. Or what if you want to use a vehicle for mobility, like e-hailing? You need to be able to access credit by using it to do your job”.
“We are happy today because we have the MD of Credit Corp who has come here with his team to enlighten our people on the process, the criteria, the guidelines, and what everyone needs to do in order to be enlisted as part of the beneficiary.
“You know, we have the assembler here, but we know this credit is going to be given to the consumer. However, the assembler is the one that will supply the product that the consumer is going to buy. So we need to, first of all, get them ready so that they can start the production, and then whatever they are producing, they will have the consumer in mind”, he said.
Speaking on behalf of auto manufacturers, the President of NAMA Mr. Bawo Omagbitse, described the launch of N20 billion auto credit landmark development .
“What we are looking at , is the significance of the auto sector to the economy . We understand it’s important for the NADDC to continue to press for demand. If we are able to stimulate the market, the production will be sensitive. Let us not worry too much about the size, we are going to trillion credit in the future.
” We will continue to produce as much as there is a market for the product. If we can get this entire auto credit scheme started, we will be engaging very well with it. The auto industry itself requires major transformation “, NAMA president said.
Yesterday’s auto credit launch marks the first phase of a consumer credit fund enabling Nigerians to purchase locally assembled automobiles.
The agreements were between leading local automobile manufacturers including Innoson, Nord, CIG (GAC), PAN, Mikano, Jets, NEV (electric), and DAG. ...CLICK HERE TO READ THE FULL ARTICLE➤
Be the first to comment