President Bola Ahmed Tinubu has directed officials to work towards a revival of Nigeria’s automotive and manufacturing sectors by bringing back iconic brands, Peugeot Automobile, Dunlop Tyre and others to the country.
This bold move is part of a larger initiative aimed at positioning Nigeria among nations with robust consumer credit systems for acquiring brand-new vehicles.
Tinubu’s marching orders to the Nigerian Consumer Credit Corporation (CREDICORP) came during a crucial briefing by the agency’s Managing Director and CEO, Engr. Uzoma Nwagba.
The announcement coincided with the signing of a historic Memorandum of Understanding (MoU) in Abuja.
The agreement, involving CREDICORP, the National Automotive Design and Development Council (NADDC), and the Nigerian Automotive Manufacturers Association (NAMA), unveiled a N20 billion consumer credit fund.
This fund aims to make locally assembled automobiles more affordable and accessible to Nigerians.
Nwagba confirmed that the fund would begin operation in January 2025, with a strong focus on reducing interest rates for auto financing to single-digit levels.
According to Nwagba, Tinubu expressed a clear vision for restoring Nigeria’s industrial glory.
“The President told me: ‘I want to see Peugeot, Dunlop, and others come back to the country,’” Nwagba revealed during the event.
The directive is part of the administration’s broader economic reform agenda, which prioritises local manufacturing and job creation.
Tinubu’s strategy aims to not only make vehicles affordable but also revitalise industries that once thrived in Nigeria.
CREDICORP is spearheading this transformation by addressing a critical barrier for Nigerians: high interest rates on loans.
“We are working towards creating a scenario where people can get automobiles at a single-digit interest rate,” Nwagba said.
He added that financial institutions will offer loans based on strong credit histories, ensuring accessibility for a broad range of Nigerians.
“This intervention is designed to make financing available and more easily accessible. It will drive down the cost of vehicles for Nigerians and make credit cheaper,” he explained.
The initiative also seeks to strengthen Nigeria’s local manufacturing capabilities.
CREDICORP plans to collaborate with automobile plants in the country, leveraging partnerships with NADDC and NAMA to ensure vehicles are produced at affordable prices.
This approach is expected to reduce Nigeria’s dependency on imported vehicles and stimulate the local economy.
Nwagba acknowledged the challenges posed by Nigeria’s high interest rates, which have made access to credit difficult for many citizens.
“We know that interest rates are quite high and remain a discouraging factor,” he said.
However, he expressed confidence that the new framework would address this issue, offering hope to millions of Nigerians dreaming of owning new vehicles.
