UBA, Mikano Cut Upfront Cost Of New Vehicles With 70% Financing Scheme

United Bank for Africa Plc (UBA) has partnered with Mikano Motors to finance up to 70 per cent of the cost of eligible new vehicles, allowing customers to acquire cars with a 30 per cent upfront contribution and repay the balance over 36 months.

The initiative, tagged “Drive Your Dream Today”, is aimed at lowering the initial financial burden of vehicle ownership and widening access to consumer credit for Nigerians, including salaried employees, entrepreneurs and self-employed customers.

Under the arrangement, UBA will finance 70 per cent of the vehicle cost, while customers provide the remaining 30 per cent as equity. The financed amount will be repaid over three years at an interest rate of 23 per cent.

The scheme was unveiled at Mikano Motors’ showroom in Victoria Island, Lagos, as banks and automobile dealers increasingly turn to structured financing to support purchases of high-value assets.

The partnership gives customers an alternative to paying the full cost of a new vehicle upfront while providing UBA with another avenue to grow its consumer lending business.

A key feature of the UBA auto financing scheme is its availability to customers beyond conventional salaried workers.

Chidi Okpala, UBA’s Group Executive Director-designate, Personal and Business Banking, said the partnership was designed to make vehicle ownership more attainable while strengthening the bank’s consumer credit proposition.

 “Owning a car should not be out of reach for hardworking Nigerians, and this partnership makes it far more achievable,” Okpala said.

“A customer puts down 30 per cent, we finance the rest, and they pay us back comfortably over a three-year period.”

He said reducing the upfront requirement would help remove one of the major barriers facing prospective vehicle buyers.

The facility is available to eligible individuals, including entrepreneurs and customers who do not earn conventional monthly salaries. 

UBA said this would allow self-employed Nigerians and business owners to participate in the financing programme, subject to the bank’s eligibility and credit assessment.

UBA’s Group Head, Frank Okoh, Consumer Lending, said the application process had been structured to accommodate different categories of borrowers.

“We have kept the entry simple and the terms clear, whether you earn a salary or run your own business,” Okoh said.

Prospective customers can begin by checking their eligibility at a UBA branch or through the bank’s consumer lending channel.

Following approval, the customer obtains a proforma invoice from Mikano Motors for the preferred vehicle and proceeds with the financing process.

While the scheme reduces the amount customers need to provide upfront, borrowers will have to account for the cost of financing when assessing the overall price of the vehicle.

Customers contribute 30 per cent of the purchase price, while UBA finances the remaining 70 per cent at 23 per cent interest over 36 months.

For example, a customer buying a vehicle for N30 million would provide N9 million upfront, while the financed portion would be N21 million, before applicable financing costs and charges.

The three-year repayment structure spreads the financial obligation over a longer period, potentially easing cash-flow pressure for customers who can meet the repayment requirements.

UBA already offers auto loans as part of its broader personal lending products. Its website lists vehicle financing for new and pre-owned cars, alongside other consumer and asset-financing products. 

The partnership comes as the cost of acquiring vehicles has increased, making outright purchases more difficult for many Nigerian households, professionals and businesses.

For automobile dealers, financing can help widen the pool of potential buyers at a time when high purchase prices can constrain demand.

For banks, vehicle financing provides an opportunity to expand consumer lending by attaching credit to a tangible asset and an established purchase transaction.

The development also follows UBA’s previous expansion into vehicle financing partnerships.

In December 2025, the bank partnered CIG Motors, LagRide and the Lagos State Government on a $100 million “Drive to Own” financing programme, under which eligible beneficiaries could contribute 10 per cent of the vehicle cost and repay the balance over 48 months. 

The new Mikano arrangement, however, targets a broader consumer market rather than being limited to ride-hailing drivers.

For Mikano Motors, the financing partnership provides a mechanism for reaching customers who may be able to afford regular repayments but lack sufficient cash to purchase a vehicle outright.

Tarek Mostafa, General Manager of Mikano Motors, said the company’s proposition extended beyond the initial vehicle sale to after-sales support.

“Mikano Motors was established to give Nigerians a high-end ownership experience, from the showroom to years down the road,” Mostafa said.

He said the company supports vehicles sold through its network with genuine spare parts, maintenance and other after-sales services.

“Partnering with UBA lets more customers enjoy that experience, and we are proud to build lasting relationships alongside a bank that shares our commitment to service,” he added.

Mikano Motors was established in 2018 under Mikano International, which has more than 35 years of operations in Nigeria. The company offers a range of vehicles and provides sales and after-sales services.