Empowering Micro-Entrepreneurs: Accion and CrediCorp’s Tricycle and Motorcycle Financing Initiative in Lagos
In a significant move towards empowering micro-entrepreneurs and boosting economic activity, Accion Microfinance Bank and the Nigeria Consumer Credit Corporation (CrediCorp) have joined forces to provide accessible and affordable financing for tricycles and motorcycles, commonly known as "kekes" and "okadas," to riders in Lagos. This initiative aims to alleviate the financial burden on riders, enabling them to acquire these essential vehicles without resorting to exorbitant upfront payments. The official handover of the vehicles took place at a ceremony in Lagos, marking the commencement of this impactful partnership.
At the heart of this collaboration lies a shared vision for economic empowerment and financial inclusion. Accion MFB, renowned for its commitment to serving the underserved and unserved, recognized the transformative potential of this initiative to uplift the welfare of riders. By partnering with CrediCorp, a wholesale banker, Accion MFB bridges the gap between large-scale financing and the individual needs of micro-entrepreneurs. The tricycles, priced at N3.6 million, are made affordable through a flexible installment plan spanning 24 months. Accion MFB’s rigorous risk assessment process not only ensures the riders’ eligibility but also provides CrediCorp with the assurance of loan repayment.
The initiative’s broader impact extends beyond individual riders. The Managing Director/CEO of Accion MFB, Taiwo Joda, emphasized the project’s alignment with President Bola Tinubu’s vision for economic development and poverty reduction. By facilitating access to income-generating assets, the program aims to empower individuals and foster a culture of hard work and self-reliance, diverting them from potentially corrupt practices. Furthermore, the program champions financial health and literacy, providing riders with the tools and knowledge to manage their finances effectively.
The CEO of CrediCorp, Uzoma Nwagba, highlighted the pivotal role of consumer credit in stimulating economic growth and improving quality of life. By enabling individuals to acquire goods and services through installment payments, consumer credit reduces financial pressure and promotes responsible spending habits. This, in turn, boosts local industries by creating a sustained demand for made-in-Nigeria products, fostering job creation, and contributing to overall economic prosperity. The availability of credit serves as a catalyst for economic activity, enabling individuals to participate actively in the market and contribute to the nation’s economic growth.
Looking towards the future, the initiative envisions expansion to other cities across Nigeria, including Ilorin, Kano, and Kaduna, with a specific focus on greater inclusion of women. This expansion will further amplify the program’s impact, reaching more individuals and communities in need of accessible financing solutions.
While acknowledging the positive strides made through this partnership, the Director-General of the National Automotive Design and Development Council (NADDC), Joseph Osanipin, underscored the importance of enhancing local content in the vehicles. He urged for a concerted effort to increase the proportion of locally sourced components in the tricycles to stimulate domestic production and reduce reliance on foreign imports. This aligns with the broader national objective of promoting self-sufficiency and bolstering the local automotive industry. To facilitate this, Osanipin revealed ongoing discussions with the Bank of Industry (BOI) to provide support to local component manufacturers, thereby strengthening the local supply chain and maximizing the multiplier effect of the initiative.
In conclusion, the Accion Microfinance Bank and CrediCorp partnership represents a commendable stride towards empowering micro-entrepreneurs in Nigeria’s transportation sector. By providing accessible financing for tricycles and motorcycles, the initiative addresses a critical need within the market, enabling riders to acquire vital income-generating assets. Furthermore, the program’s focus on financial literacy and responsible lending practices fosters long-term financial stability and empowers individuals to build sustainable livelihoods. The expansion plans and the emphasis on local content development demonstrate a commitment to maximizing the initiative’s impact and contribute to the nation’s economic growth and development. This collaborative effort serves as a model for public-private partnerships aimed at fostering inclusive growth and empowering marginalized communities.
