The Federal Government, on Thursday, announced N20 billion consumer credit fund for locally-assembled automobiles to take off in January 2025 at single-digit interest rate.

Director-General of the National Automotive Design and Development Council (NADDC), Dr. Oluwemino Joseph Osanipin, made this known at the signing of Memorandum of Understanding (MoU) with automotive manufacturers in Abuja on development of framework for the scheme.

He noted that the consumer credit scheme to be implemented by the Nigerian Consumer Credit Corporation (CREDICORP), was part of President Bola Ahmed Tinubu’s agenda to stimulate the economy.

According to him, the provision of the consumer credit fund for locally assembled automobiles would boost and increase the demand for auto products in the country.

Osanipin highlighted the importance of increasing the demand for auto products, saying 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 also promoting the energy sector, and that’s why it is very important.

“Our people, the citizens, want to buy vehicles, but it’s very difficult nowadays for you to save enough to buy a new vehicle. When I say vehicle, I’m talking about a motorcycle, tricycles, and vehicles—everything that we use for mobility.

“We need credit schemes to work; that’s the way it operates all over the world. You don’t see people who would need to save up to 20 million, or 30 million before they ride a vehicle or when they want to use a vehicle for mobility.

“When you access the credit and using it to do your job. As you are doing your job, you are paying back, and you are contributing to the economy,” he stated.

He added that the Managing Director/CEO of CREDICORP, Engr. Uzoma Nwagba, was at the event with his team to enlighten people on the process, the criteria, the guidelines, and what everyone needs to do to be enlisted as part of the beneficiaries.

“We have the assemblers here, but we know this credit is going to be given to the consumer. But the assemblers are the ones that will supply the product that consumers are 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.

“Because if the consumers are not happy with their products, they are not going to accept the credit for that product. So it’s competitive; the customers have a choice to make here, and they have to decide which product they are buying. But what we are saying is that the product must be Nigerian-made vehicles.

“We are happy that CREDICORP is dedicating as much as 20 billion Naira into this industry, auto sector for this. We say thank Mr President, for approving the scheme,” he stated.

Managing Director/CEO of CREDICORP, Engr. Uzoma Nwagba, on his part, explained that the Corporation is targeting a single-digit rate to enable Nigerians to purchase these vehicles, particularly the people who have very strong credits and who show a good credit history.

“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,” he stated.

President of Nigerian Automotive Manufacturers Association (NAMA), Mr. Bawo Omagbitse, commended CREDICORP for the bold initiative, saying the scheme is a catalyst for great things to come into the industry.

He noted that the auto industry itself requires transformation because it is currently “suffocating”.

Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).