Nigerians can acquire vehicles with 10% deposit under Access Bank financing initiative

Nigerians can acquire vehicles with 10% deposit under Access Bank financing initiative

Nigerians will be able to acquire vehicles with as little as a 10 per cent deposit and receive financing approval under a new vehicle financing initiative launched by Access Bank, which offers funding of up to 90 per cent of a vehicle’s value and repayment tenures of more than four years.

Speaking at AutoFest, the vehicle financing initiative launched in Lagos on Friday, Executive Director, Corporate and Investment Banking Division at Access Bank, Iyabo Soji-Okusanya, said the programme is designed to address financing constraints that have limited vehicle ownership in the country.

According to her, customers can access financing covering up to 90 per cent of a vehicle’s value through a digital application process, with a minimum equity contribution of 10 per cent. “You apply online, and you go home with the keys to your car already in your pocket,” she said.

She noted that the platform brings together vehicle manufacturers like CIG Motors, Mikano Motors, Kewalram Motors, Stallion Motors, Elizade JAC, CFAO and other Mobility dealers, and financing providers, enabling customers to purchase both new and certified pre-owned vehicles through a single process.

For businesses, she said the initiative would provide access to vehicles needed for operations while helping dealers improve inventory turnover and unlock capital tied down in unsold stock.

Presenting details of the scheme, Group Head, Access Bank Mobility, Ishmael Nwokocha, said the bank spent the last six months engaging dealers and other stakeholders in the automotive value chain before rolling out the programme.

He said Nigeria records annual vehicle sales of about 100,000 units, with only about 10 per cent being brand-new vehicles, while the remaining 90 per cent are pre-owned vehicles. According to him, rising vehicle prices have significantly reduced affordability for many Nigerians.

“What are we offering today? Come with 10 per cent equity contribution, and we’ll finance the 90 per cent,” Nwokocha said.

He added that customers would also have access to insurance, after-sales services, and a digital loan application process that allows applicants, dealers and the bank to monitor progress.

Nwokocha said the initiative extends beyond individual consumers to corporate organisations, schools, hospitals and other businesses requiring vehicle fleets.

He also disclosed plans to expand financing access to operators in the ride-hailing and transport sectors that are currently outside the formal banking system.

Group Head, Product and Segment, Access Bank, Chizoba Iheme, said the bank had put measures in place to support customers who encounter financial difficulties during the repayment period. She explained that affected borrowers could seek loan restructuring rather than risk losing their vehicles immediately.

“So long as the vehicle is still valid, it’s still running on the road, we can look at your finance and then we’ll repackage your loan,” she said.

Iheme also clarified that customers are not required to maintain loans for the full approved tenor and can repay outstanding obligations earlier if they choose. On the scope of the programme, she said financing is available to individuals, corporates and small businesses seeking vehicles for commercial or operational use.

Managing Director of CIG Motors, Eniola Olutimilehin, whose company is one of the participating dealers, said the partnership would help connect vehicle buyers with financing while supporting mobility and business operations.

She said the collaboration is expected to improve access to vehicles for individuals and entrepreneurs requiring transportation assets for personal and commercial activities.

The bank said the initiative is part of its vehicle asset financing programme aimed at expanding access to vehicle ownership and mobility services across the country.