President Bola Ahmed Tinubu has directed the Nigerian Consumer Credit Corporation (CREDICORP) to facilitate the return of Peugeot Automobile and Dunlop tyres to Nigeria. This directive aims to position Nigeria among nations that offer credit facilities for purchasing new automobiles. The announcement was made during the signing of a Memorandum of Understanding (MoU) for a N20 billion consumer credit fund intended to help Nigerians purchase locally assembled vehicles.
The Managing Director and CEO of CREDICORP, Engr. Uzoma Nwagba, confirmed the directive after briefing the President on the agency’s progress with the credit fund. He explained that Tinubu expressed a desire to see Peugeot, Dunlop, and other automobile brands return to the country, adding that CREDICORP was working to introduce a financing model similar to that in advanced countries, where vehicles are sold at single-digit interest rates. The credit scheme, which will begin in January 2025, is designed to make auto financing more accessible to Nigerians, with the goal of lowering vehicle prices.
CREDICORP plans to collaborate with local automobile plants, the National Automotive Design and Development Council (NADDC), and the Nigerian Automotive Manufacturers Association (NAMA) to reduce vehicle costs. This initiative is part of broader efforts to make financing options more available and affordable, with an emphasis on providing credit at lower interest rates.
Nwagba further explained that financial institutions would be involved in the process, offering favorable terms for those with strong credit histories. He acknowledged that high interest rates are currently a major barrier to accessing credit, which limits mobility for many Nigerians. However, the new initiative aims to make car ownership more accessible, despite the challenging economic environment.
