MICROCAPITAL BRIEF: National Automotive Council of Nigeria Launches $6.3m Microcredit Facility for Mechanics

The National Automotive Council (NAC), an agency of the Nigerian government, is planning to formally launch a NGN 1 billion (USD 6.3 million) microcredit facility for cooperatives of 10 to 20 automotive mechanics. Using a public-private partnership model, NAC plans to establish “mechanic villages” throughout the country. The villages will be equipped with basic infrastructure, mechanical and electrical workshops, schools, hospitals and housing for the mechanics. State governors will be approached to provide land and infrastructure such as electricity and water. NAC has completed arrangements for the microcredit facility with nine unnamed microfinance banks through the privately-owned Nigerian Bank of Industry Limited.

By year end, NAC expects to seek international bids from construction firms from Europe, Latin America, and China to build the mechanics’ villages. NAC estimates between NGN 10 billion (USD 63 million) and NGN 20 billion (USD 126 million) will be used to develop the average village.

By Courtney Snelling, Research Associate

About National Automotive Council (NAC): Created in 2004, the National Automotive Council (NAC) is a governmental agency in Nigeria that works to support the growth and development of the Nigerian automotive industry. NAC attempts to create an enabling environment through protective measures, incentives, regulatory activities and training programs.

Sources and Additional Resources:

Afriquejet.com, “Micro-credit for Mechanic in Nigeria” February 20, 2012. Sunday Williams. Daily Trust, http://microfinanceafrica.net/news/nigeria-micro-credit-for-mechanics-in

MicroCapital Story, February 17, 2012: “MICROCAPITAL BRIEF: Central Bank of Nigeriato Establish Microfinance Loan Fund for Women”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-t

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