Nord Automobiles is targeting a major shift in Nigeria’s auto market with the rollout of a single-digit interest vehicle financing scheme, offering loans from 9 percent to make brand-new cars more accessible to individuals and businesses.
- +Nord unveils single-digit financing to spur demand for new cars
The automaker said the initiative was designed to unlock demand for new vehicles and reduce the dominance of imported used cars, popularly known as Tokunbo.
The automaker said the initiative was designed to unlock demand for new vehicles and reduce the dominance of imported used cars, popularly known as Tokunbo.
The company tagged the initiative, Nord Finance, saying the plan would make vehicle ownership easier for individuals and businesses through flexible repayment options.
Oluwatobi Ajayi, chairman and chief executive officer of Nord Automobiles, said the company was determined to change the long-standing culture of relying on used vehicles, which he described as costly to maintain, unreliable, and often unsafe.
“Our goal is to make more Nigerians drive brand-new vehicles. For too long, Nigerians have been used to tokunbo cars. While tokunbo cars have played a role in improving access to mobility, there are growing concerns around their long-term reliability, safety standards, and overall cost of ownership,” Ajayi said.
As we look to the future, it is important to gradually transition towards more structured, reliable, and locally supported vehicle solutions that can better serve Nigerians and strengthen our economy.”
He said the financing package offers interest rates starting from 9 percent, and repayment tenures of up to 48 months.
According to him, the arrangement allows buyers to spread the cost of a new vehicle over several years rather than paying huge lump sums upfront.
“This means that instead of looking for N10m or N15m at once to buy a vehicle, you can pay a smaller amount monthly and drive a reliable brand-new car.
“You do not have to worry about frequent breakdowns or visiting mechanics regularly, as many tokunbo owners do,” Ajayi said.
He explained that the scheme is being executed through Nord Finance Limited, a subsidiary of Nord Automobiles, in partnership with a commercial bank.
He noted that prospective buyers can access financing for any of Nord’s 11 passenger and commercial vehicle models, as well as for four models under its electric-vehicle brand, Tavet.
Nigeria remains one of Africa’s largest automobile markets, with annual demand estimated at 500,000 vehicles. However, only a small percentage of that figure represents brand-new purchases, while the majority are imported used vehicles.
“Nigeria is a very big market of over 200 million people, with demand for about 500,000 vehicles yearly. Unfortunately, only around 14,000 to 20,000 of those are brand-new vehicles, depending on the data source.
“We believe that with Nord Finance, even if we move just five percent of the tokunbo market into the new-car segment, it will be a major shift,” Ajayi said.
He also said Nord vehicles are specifically designed to meet Nigerian driving conditions, unlike many imported models originally built for foreign markets.
“Our vehicles are robust; they have high ground clearance, cooling systems that can withstand Nigeria’s heat, and engines tuned to perform well with the fuel available here,” Ajayi said, adding that the company has the production capacity to meet rising demand, with its assembly plants in Epe and the University of Lagos.
Founded in 2018, Nord Automobiles focuses on designing, assembling, and distributing locally made vehicles from its Lagos base, with a growing portfolio that includes passenger, commercial, and electric models.
