Nord Automobiles has introduced a new vehicle financing initiative offering single-digit interest rates to make brand-new cars more accessible to Nigerians and reduce reliance on imported used vehicles.
Launch of Nord Finance Scheme
At the launch of the Nord Finance Scheme in Lagos, it was disclosed that the programme offers loans with interest rates starting at nine per cent and repayment periods of up to 48 months, available to both individual buyers and businesses.
Chairman's Statement
The Chairman of Nord Automobiles, Oluwatobi Ajayi, said the initiative was designed to address long-standing barriers to new car ownership in Nigeria, particularly the high upfront cost. Ajayi said the company’s goal was to encourage more Nigerians to drive brand-new vehicles, noting that while used cars, popularly called Tokunbo, had improved access to mobility, concerns remain about their reliability, safety and long-term maintenance costs.
He explained that the financing structure allows customers to spread payments over several years rather than paying large sums up front, easing the burden on buyers.
Implementation and Coverage
According to Ajayi, the scheme is being implemented by Nord Finance Limited, a subsidiary of the company, in partnership with a commercial bank. It covers all of Nord’s passenger and commercial vehicle models, as well as units in its electric vehicle line.
Market Impact
Nigeria’s auto market is estimated to demand about 500,000 vehicles annually, but only a small fraction of those are new. Ajayi said the company hopes the financing option would help shift part of the used-car market towards locally assembled vehicles. He added that Nord’s vehicles are built to suit local conditions, including road quality, climate and fuel standards—factors that often affect the performance of imported models.
