LAGOS, Nigeria — United Bank for Africa (UBA) Plc and Mikano Motors have introduced a new vehicle financing scheme designed to make it easier for eligible Nigerians to acquire brand-new vehicles through flexible payment arrangements.
The initiative, known as “Drive Your Dream Today,” allows qualified customers to purchase vehicles by paying an initial 30 per cent deposit, while UBA provides financing for the remaining 70 per cent of the vehicle’s cost.
Under the arrangement, customers will repay the financed amount over a period of 36 months, with an interest rate of 23 per cent. The partnership is aimed at reducing the immediate financial burden associated with purchasing new vehicles and providing customers with access to structured automobile financing.
The scheme was formally unveiled on Monday at the Mikano Motors showroom in Victoria Island, Lagos, bringing together the financial institution and automobile company in a partnership focused on expanding access to vehicle ownership.
UBA’s financing component is expected to provide eligible customers with an alternative to paying the full purchase price of a vehicle upfront. By spreading repayment over three years, the initiative could make vehicle acquisition more accessible to individuals and businesses that meet the eligibility requirements.
The partnership between UBA and Mikano Motors also reflects the growing use of financial services to support consumer purchases in Nigeria’s automobile sector. Auto-financing arrangements allow buyers to acquire vehicles while paying for them gradually from their income or business proceeds, subject to the terms and conditions of the financing institution.
For Mikano Motors, the initiative provides prospective buyers with an additional payment option at a time when the cost of new vehicles and the wider economic environment continue to influence purchasing decisions. The company’s collaboration with UBA is expected to broaden the pool of customers who can consider purchasing new vehicles through formal financing.
The 30 per cent initial payment means customers will still be required to provide a significant portion of the vehicle’s cost before accessing the financing facility. The remaining balance will then be covered by UBA and repaid by the customer according to the agreed 36-month repayment schedule.
The partners said the scheme is targeted at eligible customers, indicating that prospective buyers would be subject to the applicable qualification and financing requirements before approval.
The launch adds to efforts by financial institutions and businesses to develop financing products that can support consumer spending and economic activity. For customers who qualify, the “Drive Your Dream Today” programme offers a structured route to vehicle ownership without requiring the entire purchase price to be paid at once.
