The Director General of National Automotive Design and Development Council (NADDC), Joseph Osanipin has announced that the N20 billion Nigerian vehicle financing scheme will commence services in January, 2025.
Speaking while hosting Members of the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja, Osanipin said the Scheme will be disbursing fund through commercial or microfinance banks.
He said, “We need to put the necessary modalities in place so that it will be seamless. And then, the recovery of the fund, they (Scheme) will make sure that the system will make it difficult for people to run away with their money.”
On interest rate, he explained, “yes, what we are working as at today may not be single digits interest rate, but pretty soon, it is going to come back to 9%.
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“We have been on this case, it’s part of what we believe we have to do, to provide credits for the consumer” he stated.
Recall that few weeks ago, the Nigerian Consumer Credit Corporation (CREDICORP) and National Automotive Manufacturers Association (NAMA) signed a N20 billion memorandum of understanding (MoU) consumer credit fund for locally-assembled automobile.
During the unveiling of the initiative in Abuja, Osanipin said that the event marked a significant step toward transitioning Nigeria into a credit-driven economy.
He stated, “This initiative is a historic moment for Nigeria. It represents a tangible step toward building a credit-based economy where consumers can access funds to acquire value-driven goods, including automobiles.
“The N20 billion might seem small, but it is a starting point, and we are committed to learning and improving as we progress.”
The scheme seeks to provide credit for Nigerians to buy cars without paying cash, provide credit guarantees and nudge locàl automobile manufacturers to make vehicles not only affordable but meet local demands.
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