Credicorp, NADDC partner to provide credit loan to automobile plants

The National Automotive Design and Development Council (NADDC) and the Nigerian consumer credit cooperation (Credicorp) have partnered to provide N20bn credit loan for locally assembled automobile for Nigerians. The Partnership was reached at an MoU on Thursday involving both parties to boost the automobile sector and revitalize the economy. The CEO Credicorp, Engr. Uzoma Nwagba, […]

The National Automotive Design and Development Council (NADDC) and the Nigerian consumer credit cooperation (Credicorp) have partnered to provide N20bn credit loan for locally assembled automobile for Nigerians.

The Partnership was reached at an MoU on Thursday involving both parties to boost the automobile sector and revitalize the economy.

The CEO Credicorp, Engr. Uzoma Nwagba, said its job is to remove the barriers that stop people from having access to credit and give opportunity where people are able to access credit to buy vehicles and drive reduction of prices of vehicles as low as possible to improve their affordability.

“Our job is to make the financing available at affordable rates to enable Nigerians access cheaper credits. We work with financial institutions and for this intervention we are looking at targeting single unit credit to enable Nigerians purchase these vehicles, people who have very strong credit and who show good credit history. We are doing this to reduce transport poverty in the country, it is a long journey but we are happy to be in partnership with NADDC.”

The Director general of NADDC, Oluwemimo Joseph Osanipin, noted that the loan would enable market expansion and stimulate the market by providing funds to those who want to buy the vehicle.

“We can promote the industry through the supply end as well as the demand end. But we have seen that the best way to do it is through the demand stimulation. And this is why he have come up with N20bn. A lot of sectors are going to be involved, the financial sector will be involved, the auto sector will be involved the consumer will be involved. So, all of us need to work together and make this thing work”.

He said “we are taking a practical step towards turning the economy to a credit-oriented economy. Even though we don’t have what is required, we are going to take a practical step to demonstrate that we are ready to support Credicorp in Nigeria”

The President of Nigeria Automative Manufacturing Association (NAMA), Bawo Omagbtise, remarked that the auto industry requires a major transformation as the Nigerian automobile industry is suffocating at the moment and would require a major transformation to move it to the level where the credit would become an accelerator for greater things to happen.