Nord Automobiles is targeting a major shift in Nigeria’s auto market with the rollout of a single-digit interest vehicle financing scheme, offering loans from 9 percent to make brand-new cars more accessible to individuals and businesses. The automaker said the initiative was designed to unlock demand for new vehicles and reduce the dominance of imported used cars, popularly known as Tokunbo.
The company tagged the initiative Nord Finance, saying the plan would make vehicle ownership easier through flexible repayment options. Oluwatobi Ajayi, chairman and chief executive officer of Nord Automobiles, said the company was determined to change the long-standing culture of relying on used vehicles, which he described as costly to maintain, unreliable, and often unsafe. “Our goal is to make more Nigerians drive brand-new vehicles,” Ajayi said, noting that while Tokunbo cars have played a role in improving access to mobility, there are growing concerns around their long-term reliability, safety standards, and overall cost of ownership.
The financing package offers interest rates starting from 9 percent and repayment tenures of up to 48 months, allowing buyers to spread the cost of a new vehicle over several years rather than paying large lump sums upfront. The scheme is being executed through Nord Finance Limited, a subsidiary of Nord Automobiles, in partnership with a commercial bank. Prospective buyers can access financing for any of Nord’s 11 passenger and commercial vehicle models, as well as for four models under its electric-vehicle brand, Tavet.
Nigeria remains one of Africa’s largest automobile markets, with annual demand estimated at 500,000 vehicles. However, only about 14,000 to 20,000 of those are brand-new purchases annually, with the majority being imported used vehicles. Ajayi expressed confidence that even shifting just five percent of the Tokunbo market into the new-car segment would represent a major shift.
Nord vehicles are specifically designed to meet Nigerian driving conditions, with high ground clearance, cooling systems suited to the country’s heat, and engines tuned to perform well with locally available fuel. The company has assembly plants in Epe and at the University of Lagos. Founded in 2018, Nord Automobiles focuses on designing, assembling, and distributing locally made vehicles from its Lagos base, with a growing portfolio that includes passenger, commercial, and electric models.
From an economic perspective, access to affordable financing for new vehicles could stimulate local assembly, reduce the foreign exchange drain associated with used car imports, and create jobs in the automotive value chain. However, the success of the initiative will depend on the stability of interest rates, consumer confidence, and the availability of durable, affordable vehicles tailored to Nigerian roads and conditions.
