The Federal Government, on Thursday, launched a N20 billion consumer credit fund to stimulate demand for locally-assembled automobiles.
The scheme which is led by the Nigerian Credit Corporation (Credicorp) hopes to limit interest rates for consumers to single digit.
Speaking at the official launch/agreement signing between Credicorp and the National Automotive Design and Development Council, NADDC, in Abuja, the Managing Director/CEO of Credicorp, Engr. Uzoma Nwagba explained that the fund aims to eliminate barriers faced by consumers in buying automobiles on credit.
Nwagba pointed out that the credit economy helps in improving the quality of lives of citizens as well as creating jobs and wealth for Nigerians.
He said the government is committed to supporting the sector to ensure growth and sustainability. He stated that the N20 billion fund was just the beginning as the government plans for a bigger fund if the initial support proves successful.
Speaking earlier, the Director General, NADDC, Mr. Joseph Osanipin noted that improving the demand side of the automobile market is critical to the growth of the industry.
Osanipin pointed out that in most thriving economies consumers do not buy cars and other automobiles by paying for them in cash, adding that credit schemes allow consumers to purchase brand new automobiles of their choice.
He said the scheme which includes all forms of automobiles such as cars, vans, tricycles and motor bikes is open to every Nigerian and involves vehicle makers which manufacture or assemble their products completely in-country.
