United Bank for Africa (UBA) Plc has partnered with Mikano Motors to launch a new auto financing scheme aimed at making new vehicle ownership more accessible to Nigerians. The initiative, themed “Drive Your Dream Today,” allows eligible customers to acquire vehicles with a 30% upfront payment, while UBA finances the remaining 70%.
The financing scheme was unveiled at the Mikano Motors showroom in Lagos and provides customers with the opportunity to repay the financed portion over 36 months at an interest rate of 23%. The arrangement is designed to reduce the immediate financial burden associated with purchasing a new vehicle, particularly at a time when vehicle prices and household costs remain elevated.
A notable feature of the initiative is its accessibility to both salaried and self-employed Nigerians. Customers who do not receive regular salaried income, including entrepreneurs and business owners, can also apply, subject to UBA’s eligibility requirements. This expands the potential customer base beyond conventional auto-loan borrowers and provides a structured financing pathway for individuals with different income profiles.
Speaking at the launch, UBA’s Group Executive Director-designate, Personal and Business Banking, Chidi Okpala, said the partnership reflects the bank’s commitment to making vehicle ownership more attainable while strengthening Nigeria’s credit culture and advancing financial inclusion.
UBA’s Group Head, Consumer Lending, Frank Okoh, said the financing process was designed to be straightforward, with customers able to begin the eligibility process through a UBA branch or by email. The bank will then guide successful applicants through the financing process until the vehicle is delivered.
For Mikano Motors, the partnership provides an opportunity to make its vehicles accessible to a wider segment of the Nigerian market while supporting its focus on premium vehicle ownership and after-sales services. The company’s General Manager, Tarek Mostafa, said the collaboration aligns with Mikano’s objective of providing customers with a high-quality ownership experience from purchase through the life of the vehicle.
The initiative could also contribute to the development of Nigeria’s consumer credit market. By enabling customers to spread the cost of vehicle purchases over three years rather than paying the full amount upfront, the scheme introduces a more structured approach to financing large consumer purchases. It may also encourage greater formalisation of borrowing among self-employed individuals and entrepreneurs.
From a broader economic perspective, increased access to vehicle financing could stimulate activity across Nigeria’s automotive value chain, including vehicle sales, maintenance, insurance, spare parts, logistics and other related services. Easier access to financing could also support entrepreneurs and small-business owners who depend on vehicles for commercial activities.
The partnership demonstrates the growing role of financial institutions in developing asset-financing products tailored to changing consumer needs. As banks seek to expand consumer lending while managing credit risk, partnerships with established vehicle dealers provide an opportunity to combine financing expertise with structured vehicle distribution and after-sales support.
