KEY POINTS

• FG approves ₦20bn fund for local automobile producers in low-interest credit facilities.
• Credit scheme entails vehicles, cars, vans, tricycles etc., and motorbikes.
• Success could mean expanding the fund with which to further develop the industry.

In a bid to stimulate demand for locally assembled vehicles the Federal Government has launched a 20 billion Naira consumer credit fund.

The extension of the initiative by the Nigerian Credit Corporation, popularly known as Credicorp in conjunction with the National Automotive Design and Development Council, aims at bringing the rates down to single digits for the buyers.

Delivering his speech at the launch and agreement signing ceremony held in Abuja, the Managing Director of Credicorp, Engr. Uzoma Nwagba said that the scheme is intended towards eradicating credits hindering consumers.

He was also able to make it clear that credit based economies enhances citizens’ well being, creates employment opportunities and wealth.

However this ₦20 billion fund will be just the start. If successful, the government will grow the fund enormously,” Nwagba said.

NADDC points to the requirement for credit financing

The Director General of NADDC, Mr. Joseph Osanipin, noted in particular the need to address the demand side of the automotive industry. He was quick to point out that in most successful economy, there are enrolments in credit facilities on vehicles rather than cash down payments.

Osanipin said this effort allows Nigerians to purchase locally made or assembled cars, vans, tricycles and motorbikes.

The scheme involves every Nigerian and should spearhead development of the automotive industry and local assembly.