United Bank for Africa Plc (UBA) has partnered with Mikano Motors to launch a vehicle financing scheme that allows eligible Nigerians to finance up to 70 per cent of the cost of a new vehicle. The initiative, tagged “Drive Your Dream Today,” was unveiled at the Mikano Motors showroom in Victoria Island, Lagos.
Under the arrangement, customers are required to make a 30 per cent down payment, while UBA provides financing for the remaining 70 per cent. The financed amount will be repaid over a period of 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 individuals who may not earn conventional monthly salaries.
How the UBA-Mikano Financing Works
UBA’s Group Executive Director-designate, Personal and Business Banking, Chidi Okpala, said the financing arrangement was structured to reduce the upfront cost of purchasing 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.
UBA’s Group Head, Consumer Lending, Frank Okoh, said the scheme accommodates different categories of customers, including business owners and salaried employees. According to him, interested customers can begin by undergoing an eligibility assessment at a UBA branch or through the bank’s consumer lending email channel. Once approved, customers can obtain a pro forma invoice from Mikano Motors for their preferred vehicle and proceed with the financing process.
Mikano Promises After-Sales Support
For Mikano Motors, the partnership is expected to broaden access to its vehicles by allowing more Nigerians to spread the cost of ownership over time. The company’s General Manager, Tarek Mostafa, said Mikano would complement the financing package with sales and after-sales services, including genuine spare parts and vehicle maintenance.
The initiative comes amid sustained concerns over vehicle affordability in Nigeria, with the rising cost of new cars putting ownership beyond the reach of many households and business owners. By financing 70 per cent of a vehicle’s purchase price and allowing repayment over three years, the scheme could make new vehicle ownership more accessible to eligible Nigerians while deepening UBA’s consumer lending portfolio.
Popular Bank Launches Scheme to Make Car Ownership Easier
Legit.ng earlier reported that Access Bank Plc has unveiled AutoFest, a vehicle financing programme designed to make car ownership more attainable for Nigerians battling rising vehicle prices and tightening economic conditions. The initiative, launched at an event in Lagos, allows eligible customers to access up to 90 per cent funding for both new and certified pre-owned vehicles, with a minimum equity contribution of just 10%. Tenures extend beyond four years, and the programme features a streamlined digital application process.
