The Nigerian Consumer Credit Corporation (CREDICORP) and the National Automotive Design and Development Council (NADDC) have kicked off the first phase of a consumer credit fund enabling Nigerians to purchase locally-assembled automobiles.
According to a statement from the CREDICORP, the scheme kicked off with the signing of agreements with leading local automobile manufacturers including Innoson, Nord, CIG (GAC), PAN, Mikano, Jets, NEV (electric), and DAG.
The Corporation said the targeted initiative empowers Nigerians with credit to own new automobiles (cars, tricycles, motorbikes) while growing Nigeria’s automotive industry.
Implementing project S.C.A.L.E
CREDICORP said the automobile credit scheme is part of its recently launched project S.C.A.L.E, through which it plans to provide credit for one million Nigerian consumers to purchase locally manufactured goods and services.
“The Automotive industry is one of five thematic areas of CREDICORP’s Project S.C.A.L.E. (Securing Consumer Access for Local Enterprises) which channels the Corporation’s credit-backed consumers to purchase goods and services of local vendors and manufacturers,” it said.
The Corporation said the S.C.A.L.E initiative is focusing on local manufacturers in different sectors including:
- Home Improvement (Furniture, Appliances, Building Materials): This enables households to upgrade their living standards by heavily incentivizing consumer credit for locally manufactured furniture, building materials, and appliances.
- Mobility (cars, buses, keke, bicycles – esp. CNG & Electric): Promotes accessible transportation by facilitating access to compressed natural gas (CNG) and electric vehicles (cars, motorbikes, keke, bicycles). This will enable cheaper and cleaner transportation, and stimulate growth and value addition in Nigeria’s automotive sector.
- Electronics (Digital Devices): Provides consumers with affordable access to essential digital devices, including smartphones, tablets, and laptops, fostering digital inclusion and participation in the digital economy.
- Energy Solutions (Generators, Solar, etc): Empowers homes and small businesses with affordable, sustainable energy solutions, such as solar panels and efficient generators, addressing Nigeria’s energy challenges.
General Merchandise (Apparel & Textiles, Healthcare, Food & Beverage): Enhances access to essential healthcare products, quality apparel, and nutrition, while advancing growth in those sectors.
What you should know
In October, CREDICORP unveiled a similar initiative called Credit Access for Light and Mobility (CALM) Fund aimed at providing consumer credit to help Nigerians access CNG conversions and solar home systems through partner financial institutions.
- The CALM Fund was launched as a partnership between the Ministry of Finance Incorporated (MoFI), the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
- Meanwhile, CREDICORP earlier announced that 151 financial institutions comprising commercial banks, fintechs, and Microfinance Banks had signed up to be part of its consumer credit scheme.
- However, so far, the Corporation has unveiled five financial institutions under the scheme. These include Credit Direct, Wema Bank, Accion Micro Finance Bank, LETSHEGO Micro Finance Bank, and Abbey Mortgage Bank.
As part of moves to perfect the consumer scheme, CREDICORP also recently announced a partnership with the National Identity Management Commission (NIMC) to fast-track the building of credit scores for all Nigerians with the National Identification Number (NIN).
