United Bank for Africa (UBA) Plc has partnered with Mikano Motors to introduce a vehicle financing scheme aimed at expanding access to new cars for Nigerians, with customers required to provide only 30 per cent of the vehicle cost upfront.
Under the initiative, tagged “Drive Your Dream Today,” UBA will finance the remaining 70 per cent, with eligible customers allowed to repay the facility over 36 months at an interest rate of 23 per cent.
The scheme, unveiled at Mikano Motors’ showroom in Victoria Island, Lagos, is open to salaried employees, self-employed individuals and non-salaried entrepreneurs, widening access to structured vehicle financing beyond traditional salary earners.
Speaking at the launch, UBA’s Group Executive Director-designate for Personal and Business Banking, Chidi Okpala, said the partnership was designed to make vehicle ownership more achievable for hardworking Nigerians while deepening the country’s credit culture.
He said the financing structure removes the burden of paying the full cost of a vehicle upfront, allowing customers to spread repayment over three years.
“By removing the single biggest barrier to vehicle ownership, where a customer only commits an upfront cost, we are showing what customer-first banking looks like in practice,” Okpala said.
According to UBA, prospective customers can begin the process by visiting any of its branches or contacting its consumer lending team to determine their eligibility.
Following approval, customers will obtain a proforma invoice from Mikano Motors for their preferred vehicle before completing the financing agreement.
UBA’s Group Head of Consumer Lending, Frank Okoh, said the scheme was structured around simple eligibility requirements and transparent repayment terms.
He said both salaried workers and business owners could access the facility, with the bank providing guidance throughout the application and vehicle acquisition process.
For Mikano Motors, the partnership is expected to expand its customer base by reducing the upfront financial barrier to vehicle ownership.
The company’s General Manager, Tarek Mostafa, said the collaboration would enable more Nigerians to access its vehicles while benefiting from its nationwide after-sales support network.
He said Mikano’s offering extends beyond vehicle sales to include genuine spare parts, maintenance and servicing support.
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Established in 2018 as a division of Mikano International, Mikano Motors draws on the group’s more than 35 years of operations in Nigeria and offers passenger and commercial vehicles supported by its sales and service network.
The partnership reinforces UBA’s consumer lending strategy as the bank expands credit solutions designed to finance major personal and lifestyle purchases.
With customers able to finance 70 per cent of a vehicle’s cost and spread repayment over 36 months, the initiative provides an alternative route to vehicle ownership at a time when high vehicle prices continue to make outright purchases difficult for many Nigerian consumers.
