United Bank for Africa Plc (UBA) has partnered with Mikano Motors to make it easier for Nigerians to buy new vehicles by providing financing for up to 70 per cent of the purchase price.
The initiative, known as “Drive Your Dream Today,” was launched in Lagos as both companies seek to improve access to vehicle financing at a time when the rising cost of cars has made ownership increasingly difficult for many Nigerians.
Under the arrangement, eligible customers will pay 30 per cent of the vehicle’s cost upfront, while UBA will finance the remaining 70 per cent. The financed amount can then be repaid over a period of 36 months at an interest rate of 23 per cent.
The scheme is available to both salaried employees and self-employed Nigerians. This means entrepreneurs, business owners and other individuals without conventional monthly salaries can also apply, provided they meet the required eligibility conditions.
The partnership was unveiled at the Mikano Motors showroom in Victoria Island, Lagos.
UBA’s Group Executive Director-designate for Personal and Business Banking, Chidi Okpala, said the programme was created to reduce the amount customers need to provide before purchasing a vehicle.
He explained that instead of paying the full cost of a car at once, customers can make the required 30 per cent initial payment and spread repayment of the remaining amount over three years.
The bank said the initiative is part of its broader strategy to expand consumer lending and provide financial products that address everyday needs.
UBA’s Group Head of Consumer Lending, Frank Okoh, said the financing programme was structured to accommodate different categories of customers, including people who earn income through businesses rather than fixed salaries.
Interested customers can begin by checking their eligibility through a UBA branch or the bank’s consumer lending channel. Once approved, they can obtain a proforma invoice from Mikano Motors for the vehicle they want and continue with the financing process.
For Mikano Motors, the agreement provides an opportunity to reach more customers who may otherwise struggle to afford a new vehicle because of the high upfront cost.
The company’s General Manager, Tarek Mostafa, said Mikano would support customers beyond the initial purchase by providing after-sales services.
These services include genuine spare parts, vehicle maintenance and other forms of customer support.
The partnership comes at a time when the cost of new vehicles in Nigeria has increased considerably, making it harder for individuals and businesses to purchase cars outright.
By allowing customers to pay a portion upfront and spread the remaining cost over 36 months, the arrangement could reduce the immediate financial pressure associated with vehicle ownership.
It also strengthens the connection between consumer banking and the automobile industry by making bank financing directly available for vehicle purchases.
For UBA, the partnership represents another step towards expanding its consumer credit business. For Mikano Motors, it could increase vehicle sales by giving more Nigerians access to structured financing.
As vehicle prices remain a major concern for Nigerian consumers, initiatives that combine automobile sales with affordable financing could become increasingly important in supporting vehicle ownership and business mobility.
