UBA, Mikano Motors unveil 70% vehicle financing scheme
By Aboki Forex —
United Bank for Africa Plc has partnered with Mikano Motors to launch a vehicle financing scheme that covers up to 70 per cent of the cost of a new car. Eligible buyers pay a 30 per cent deposit upfront, with the bank financing the rest at 23 per cent interest over 36 months.
The scheme, tagged “Drive Your Dream Today,” was unveiled at the Mikano Motors showroom in Victoria Island, Lagos. It targets both salaried workers and self-employed Nigerians, including entrepreneurs without a regular monthly income.
How the financing works
Under the arrangement, customers make a 30 per cent down payment while UBA provides financing for the remaining 70 per cent. The financed amount is repaid over 36 months at an interest rate of 23 per cent, according to the partners.
UBA’s Group Executive Director-designate for Personal and Business Banking, Chidi Okpala, said the structure is meant to reduce the upfront cost of buying a vehicle. “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 added that the initiative reflects UBA’s broader strategy of developing credit products tailored to customers’ everyday financial needs.
Who can apply
The scheme is open to salaried employees and self-employed Nigerians. UBA’s Group Head of Consumer Lending, Frank Okoh, said it accommodates business owners and workers with regular income.
Interested customers can begin with an eligibility assessment at a UBA branch or through the bank’s consumer lending email channel. Once approved, they obtain a pro forma invoice from Mikano Motors for their preferred vehicle and proceed with the financing process.
Mikano’s role and market context
Mikano Motors General Manager, Tarek Mostafa, said the company will back the financing package with sales and after-sales services, including genuine spare parts and vehicle maintenance.
The initiative comes as rising vehicle prices push car ownership beyond the reach of many Nigerian households and business owners. By financing 70 per cent of the purchase price and allowing repayment over three years, the scheme could make new vehicle ownership more accessible while deepening UBA’s consumer lending portfolio.
Access Bank recently launched a similar programme, AutoFest, offering up to 90 per cent funding for new and certified pre-owned vehicles, with a minimum equity contribution of 10 per cent and tenures beyond four years.
For Nigerians struggling with vehicle affordability, the UBA-Mikano scheme offers another option to spread the cost of a new car over time. With interest at 23 per cent and a three-year repayment window, borrowers will need to weigh the total cost against the convenience of owning a vehicle now.