President Bola Ahmed Tinubu has instructed the Nigerian Consumer Credit Corporation (CREDICORP) to work towards the return of Peugeot Automobile and Dunlop Tyre to Nigeria as the country adopts credit facilities for purchasing brand-new vehicles.
CREDICORP’s Managing Director/CEO, Engr. Uzoma Nwagba, confirmed the President’s directive at the launch and signing of a Memorandum of Understanding (MoU) for a N20 billion consumer credit fund aimed at financing the purchase of locally assembled vehicles. The agreement, involving CREDICORP, NAMA, and NADDC, took place in Abuja.
Nwagba shared that he had briefed the President on the progress of the agency, particularly regarding the N20 billion fund designated for Nigerian citizens to purchase locally assembled automobiles. He quoted President Tinubu, saying, “The President told me: I want to see Peugeot, Dunlop and others come back to the country.” He emphasized that CREDICORP is working to create a system similar to those in developed countries, where consumers can access automobiles at a single-digit interest rate. The initiative for auto purchase financing will begin in January 2025.
Nwagba also noted that CREDICORP would collaborate with local automobile plants, the National Automotive Design and Development Council (NADDC), and the Nigerian Automotive Manufacturers Association (NAMA) to reduce vehicle prices, making them more affordable for Nigerians.
“We are trying to make the financing more available and more easily accessible,” Nwagba said, explaining that CREDICORP aims to offer more affordable credit options. He added that, “in terms of the rates also, to enable Nigerians have cheaper credits.” The agency plans to collaborate with financial institutions, aiming to provide loans at single-digit rates over time, allowing Nigerians to purchase vehicles at lower costs.
For those with strong credit histories, financial institutions are confident in their ability to access the capital and guarantees provided by CREDICORP. Nwagba acknowledged the high interest rates in Nigeria, stating that they pose a challenge to accessing credit but remain an economic reality. Despite this, he believes that making credit more accessible for mobility is essential.
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