Owning a brand-new vehicle could become more accessible to Nigerians following a new partnership between United Bank for Africa and Mikano Motors that allows eligible customers to finance up to 70 per cent of a vehicle's cost.
The initiative, tagged “Drive Your Dream Today,” was unveiled at Mikano Motors' showroom in Victoria Island, Lagos, as part of efforts to expand access to vehicle financing and consumer credit.
Under the arrangement, customers are required to provide an initial 30 per cent down payment, while UBA finances the remaining 70 per cent of the vehicle's purchase price.
The financed portion is repayable over a period of 36 months, with the scheme carrying an interest rate of 23 per cent.
The financing programme is available to both salaried and self-employed customers, including eligible individuals who do not receive regular monthly salaries.
This means entrepreneurs, business owners and other qualifying Nigerians can potentially access financing without being restricted to traditional salaried employment.
UBA said the partnership is aimed at making vehicle ownership more attainable while encouraging responsible borrowing and strengthening Nigeria's emerging consumer-credit culture.
Chidi Okpala, UBA's Group Executive Director-designate for Personal and Business Banking, said the initiative was developed around the belief that vehicle ownership should be more achievable for hardworking Nigerians.
He said the financing structure allows customers to make a manageable upfront commitment while spreading the remaining cost over three years.
For prospective buyers, the arrangement removes the need to raise the entire purchase price in cash before taking possession of a new vehicle, although applicants will still have to meet the bank's eligibility requirements.
The process begins with an eligibility assessment through UBA, after which approved customers can obtain a proforma invoice from Mikano Motors for their preferred vehicle.
Once the invoice is obtained, the customer can proceed with the remaining financing process.
UBA's Group Head of Consumer Lending, Frank Okoh, said the programme was designed to extend vehicle-financing opportunities beyond traditional salaried workers.
The partnership comes at a time when rising vehicle prices have made outright purchase increasingly difficult for many Nigerian households and business owners.
The cost of new vehicles has risen substantially in recent years, making structured financing an increasingly important option for consumers who cannot afford to make full cash payments.
For entrepreneurs, access to a vehicle can also have a direct impact on business operations by improving mobility, logistics and the ability to reach customers and markets.
The financing arrangement therefore has potential implications beyond personal transportation, particularly for small-business owners who require vehicles for commercial activities.
Mikano Motors' involvement also gives prospective customers access to vehicles supplied through an established automotive company while UBA provides the financing component.
The partnership reflects a broader movement in Nigeria towards expanding consumer credit as banks and financial institutions explore ways to make major purchases more accessible through structured repayment plans.
However, customers considering the scheme will need to carefully assess the total cost of financing, including the 23 per cent interest rate and other applicable charges, before committing to a vehicle purchase.
Applicants will also need to satisfy UBA's credit and eligibility requirements before financing can be approved.
The initiative could nevertheless provide an alternative for Nigerians who have sufficient income to service a loan but cannot afford to purchase a new vehicle outright.
With UBA financing up to 70 per cent of the vehicle cost, the partnership positions credit as a bridge between prospective buyers and the increasingly expensive new-vehicle market.
For Nigerians dreaming of owning a new car, the key attraction is straightforward: instead of paying the full purchase price upfront, eligible buyers can provide 30 per cent and spread the financed balance over three years.