United Bank for Africa Plc has partnered Mikano Motors to offer financing covering up to 70 per cent of the cost of new vehicles, as lenders and auto dealers seek to make vehicle ownership more accessible amid rising vehicle prices.
Under the “Drive Your Dream Today” scheme unveiled in Lagos, eligible customers are required to provide a 30 per cent down payment, while UBA finances the remaining 70 per cent.
The financed amount is repayable over 36 months at an interest rate of 23 per cent, according to the partners.
The scheme is open to both salaried and self-employed Nigerians, including entrepreneurs and other eligible customers who may not have conventional monthly salaries.
The partnership was unveiled at the Mikano Motors showroom in Victoria Island, Lagos, with UBA saying the initiative is aimed at expanding access to consumer credit and encouraging a stronger credit culture.
UBA’s Group Executive Director-designate, Personal and Business Banking, Chidi Okpala, said the arrangement was designed to reduce the upfront financial burden associated with vehicle purchases.
“A customer puts down 30 per cent, we finance the rest, and they pay us back comfortably over a three-year period,” Okpala said.
He said the partnership reflected the bank’s broader effort to provide credit products that respond to customers’ everyday financial needs.
UBA’s Group Head, Consumer Lending, Frank Okoh, said the financing structure was designed to accommodate both salaried workers and business owners.
According to him, prospective customers can begin the process by undergoing an eligibility check at a UBA branch or through the bank’s consumer lending email channel.
Once approved, customers can approach Mikano Motors for a proforma invoice for their preferred vehicle and proceed with the financing process.
For Mikano Motors, the partnership is expected to expand the pool of Nigerians able to purchase its vehicles through structured financing.
General Manager of Mikano Motors, Tarek Mostafa, said the company would complement the financing arrangement with sales and after-sales support.
He said the company provides genuine spare parts, maintenance and other after-sales services to customers across the country.
The partnership comes as vehicle affordability remains a major constraint for many Nigerians, particularly as the cost of new vehicles has risen sharply in recent years.
By allowing buyers to spread the financed portion of the purchase price over three years, the initiative shifts part of the vehicle acquisition burden from an upfront payment to scheduled repayments.
The arrangement also deepens UBA’s consumer lending activities by linking bank credit directly to the purchase of a tangible asset.