To address the soaring cost of vehicles in Nigeria, the federal government has signed a Memorandum of Understanding (MoU) with over ten auto manufacturers to promote the production and accessibility of locally assembled automobiles.
Key Highlights of the Initiative
- Credit Facility:
The Nigeria Consumer Credit Corporation (CreditCorp) will issue a N20 billion credit facility to support local manufacturers and make vehicles more affordable for Nigerians. The loans will be offered at a single-interest rate for increased accessibility. - Beneficiaries:
Prominent firms such as CIG, Maikano, TVS, DAC, JET, NORD, PAN Nigeria, Peugeot, ANAMMCO, and others are among the beneficiaries of this scheme. - Objective:
The initiative aims to stimulate local automobile production, reduce reliance on imports, and ensure that Nigerians can access vehicles through affordable credit arrangements.
Government’s Commitment
At the signing ceremony, Joseph Osanipin, Director General of the National Automotive Design and Development Council (NADDC), emphasized the government’s dedication to revitalizing the local auto industry.
“Nobody can save N50 million to buy a vehicle outright, but through credit facilities, we can make it possible. This initiative demonstrates our readiness to support local automobile production and make vehicles affordable for Nigerians,” Osanipin stated.
He also acknowledged the efforts to revive key players in the industry, such as Peugeot Nigeria and Dunlop, which were once pivotal to the country’s automotive sector.
Ensuring Scheme Sustainability
Uzoma Nwagba, Managing Director of CreditCorp, stressed the importance of responsible participation by all stakeholders, including banks, manufacturers, and consumers.
“If you take the money, use it wisely, and pay it back, the system will evolve and continue. Misuse, however, could lead to its collapse,” Nwagba warned.
He urged collaboration among all parties to ensure the scheme’s success and long-term viability.
Impact on Nigeria’s Automotive Sector
This initiative is part of a broader strategy by the federal government to:
- Stimulate local production and assembly of vehicles.
- Reduce Nigeria’s dependence on imported cars.
- Make locally produced vehicles accessible to average Nigerians through innovative financing.
The program represents a practical step toward addressing vehicle affordability challenges while fostering industrial growth and economic development.
