How the N20 Billion CREDICORP Fund Will Help Nigerians Purchase Locally Assembled Vehicles

In a bid to boost Nigeria’s automotive industry and provide more Nigerians with access to locally-assembled vehicles, the Nigerian Consumer Credit Corporation (CREDICORP), in collaboration with the National Automotive Design and Development Council (NADDC), has launched a N20 billion consumer credit fund. This new initiative aims to empower Nigerians to purchase a range of locally assembled automobiles, including cars, tricycles, and motorbikes, helping to stimulate the nation’s economy and promote the growth of the automotive sector.

This article will break down everything you need to know about the N20 billion consumer credit fund, including its objectives, how it works, eligibility requirements, and the broader impact on Nigeria’s economy.

Overview of the N20 Billion Consumer Credit Fund

The newly launched N20 billion consumer credit fund is part of a larger initiative aimed at supporting Nigerian consumers with the financial means to purchase locally assembled cars, tricycles, and motorbikes. The fund is designed to ease the financial burden on individuals who wish to own vehicles but struggle to afford them due to high upfront costs. By offering access to credit, CREDICORP hopes to promote the adoption of locally-manufactured vehicles and contribute to the growth of Nigeria’s automotive industry.

The fund kicked off with agreements between CREDICORP and leading Nigerian automobile manufacturers such as Innoson, Nord, CIG (GAC), PAN, Mikano, Jets, NEV (electric), and DAG. These companies are key players in the country’s automotive sector, and their participation is crucial to the success of the initiative.

Objectives of the Consumer Credit Fund

The primary objectives of the N20 billion consumer credit fund are:

1. Promote Locally-Assembled Vehicles: The scheme aims to support the growth of the Nigerian automotive industry by making it easier for consumers to purchase locally assembled cars and other vehicles, thus encouraging the use of locally-produced goods.
2. Financial Accessibility: By providing access to affordable credit, CREDICORP ensures that more Nigerians can own vehicles, which will help reduce the reliance on imports and stimulate the domestic market.
3. Support for Nigerian Manufacturers: The credit fund provides a boost to local manufacturers by increasing demand for locally made cars, tricycles, and motorbikes, which will also generate more job opportunities within the sector.
4. Economic Growth: The initiative seeks to drive economic growth by making it easier for Nigerians to access automobiles, which is critical for both personal mobility and the broader economy, especially in rural areas where transportation options are limited.

Implementing Project S.C.A.L.E

The consumer credit fund is part of CREDICORP’s Project S.C.A.L.E. (Securing Consumer Access for Local Enterprises). This project aims to provide credit-backed access for Nigerians to purchase goods and services from local vendors and manufacturers, thereby strengthening the local economy.

Project S.C.A.L.E. has five key thematic areas, each focusing on different sectors of the economy:

1. Home Improvement: Providing consumers with affordable credit for locally manufactured furniture, appliances, and building materials, allowing households to improve their living standards.
2. Mobility: This includes credit for purchasing cars, buses, tricycles, motorbikes, and electric vehicles (EVs), with a focus on CNG-powered vehicles. This will promote cleaner, cheaper transportation options for Nigerians.
3. Electronics: Enabling Nigerians to purchase essential digital devices such as smartphones, tablets, and laptops. This promotes digital inclusion and allows more people to participate in the digital economy.
4. Energy Solutions: Facilitating the purchase of solar systems and generators, addressing Nigeria’s energy challenges and providing sustainable solutions for homes and small businesses.
5. General Merchandise: Enhancing access to healthcare products, food, apparel, and other essential goods, which will support growth in the consumer goods sector.

How to Apply for the Consumer Credit Fund

Applying for the consumer credit fund to purchase a locally-assembled automobile involves several straightforward steps. Here’s what you need to know:

1. Eligibility Criteria: Applicants must meet the requirements set by CREDICORP and the participating financial institutions. The fund is available to Nigerians who are looking to purchase locally-assembled vehicles. This includes individuals interested in cars, tricycles, and motorbikes.
2. Document Requirements: Applicants will need to provide proof of identity, income verification, and other relevant financial documents. This might include a recent bank statement or proof of employment, as well as details about the automobile they wish to purchase.
3. Partner Financial Institutions: CREDICORP has partnered with over 150 financial institutions, including commercial banks, fintechs, and microfinance banks. These institutions will help facilitate the credit process and ensure the smooth disbursement of funds.
4. Application Process: To apply for the credit scheme, applicants can visit participating banks or apply online through CREDICORP’s official platform. They will need to provide their details and submit the required documentation for review.
5. Approval and Disbursement: Once the application is processed and approved, the consumer will receive the credit needed to purchase the vehicle from one of the participating automobile manufacturers. This is typically provided in the form of a loan or financing arrangement.

Impact of the Consumer Credit Fund

The N20 billion credit fund is expected to have several positive impacts on the Nigerian economy, including:

• Increased Access to Transportation: By making vehicles more affordable, more Nigerians will be able to own their own cars or motorbikes, improving mobility, particularly in rural areas.
• Boost to Local Manufacturers: The initiative will boost demand for locally assembled vehicles, which will not only support Nigerian manufacturers but also create more job opportunities in the automotive sector.
• Economic Growth: As more people gain access to vehicles, the economy will benefit from increased productivity and more business opportunities, especially in logistics and transport sectors.
• Environmental Benefits: The focus on promoting CNG-powered and electric vehicles will encourage the adoption of cleaner, more sustainable transport options, reducing Nigeria’s carbon footprint.

Other Key Initiatives by CREDICORP

CREDICORP has also launched other initiatives aimed at improving access to essential goods and services for Nigerians. One such initiative is the Credit Access for Light and Mobility (CALM) Fund, which focuses on providing consumer credit for compressed natural gas (CNG) conversions and solar home systems.

Additionally, CREDICORP has partnered with NIMC (National Identity Management Commission) to fast-track the building of credit scores for Nigerians with the National Identification Number (NIN). This initiative is aimed at ensuring more Nigerians have access to formal credit, thus enhancing financial inclusion across the country.

Conclusion

The N20 billion consumer credit fund is a groundbreaking initiative by CREDICORP and NADDC aimed at empowering Nigerians to purchase locally-assembled automobiles. With the support of local manufacturers, financial institutions, and government initiatives, this scheme is set to improve mobility, boost the local economy, and create jobs in the automotive sector.

For Nigerians interested in owning a locally-assembled vehicle, this fund provides an excellent opportunity to access affordable credit and contribute to the growth of Nigeria’s automotive industry.