Nigerians in the market for a new car just got a new option, and it comes from an unlikely-sounding pairing: a bank and a generator company.
United Bank for Africa (UBA) has teamed up with Mikano Motors to launch a vehicle financing scheme that lets customers drive off with a new car after paying only 30 percent of the cost upfront. The bank covers the remaining 70 percent. The partnership, tagged “Drive Your Dream Today,” was unveiled at the Mikano Motors showroom in Victoria Island, Lagos, in front of executives from both companies.
If you’ve been putting off buying a car because the full purchase price feels out of reach, this is worth a closer look. Here’s everything you need to know about eligibility, the interest rate, required documents, and how the application process actually works.
What the UBA-Mikano Auto Financing Scheme Offers
The structure is fairly simple on paper. A customer pays 30 percent of the vehicle’s cost as a down payment, and UBA finances the remaining 70 percent. The loan is repaid in installments over 36 months, at an interest rate of 23 percent.
UBA’s Group Head of Consumer Lending, Frank Okoh, said the scheme was built to work for both salaried employees and self-employed Nigerians. “We have kept the entry simple and the terms clear, whether you earn a salary or run your own business,” he said at the launch.
That last point matters more than it might seem. A lot of vehicle loan products in Nigeria quietly favor people with steady payslips and struggle to accommodate entrepreneurs, freelancers, and small business owners whose income doesn’t arrive in a neat monthly package. UBA says this scheme was designed with that gap in mind, opening the door to individuals who aren’t on a fixed salary as well as business owners looking for a structured route to car ownership.
Who Is Eligible
Based on details shared at the launch, the scheme targets:
- Salaried employees with verifiable income
- Self-employed individuals and entrepreneurs
- Other eligible Nigerians who meet UBA’s standard credit and repayment capacity checks
Beyond that, UBA hasn’t published an exhaustive public checklist of income thresholds or employment tenure requirements, and it’s likely these details vary depending on the applicant’s profile and the vehicle they’re financing. The safest way to know exactly where you stand is to run the eligibility check directly with the bank rather than guessing based on general assumptions.
Interest Rate and Repayment Plan
The scheme’s numbers are straightforward:
- Down payment: 30% of the vehicle’s cost
- Bank financing: 70% of the vehicle’s cost
- Repayment period: 36 months (3 years)
- Interest rate: 23%
UBA’s Executive Director designate for Personal and Business Banking, Chidi Okpala, framed the repayment structure as manageable by design. “A customer puts down 30 percent, we finance the rest, and they pay us back comfortably over a three-year period,” he said, adding that the goal is to remove what he called the single biggest barrier standing between everyday Nigerians and car ownership.
It’s worth doing your own math before signing anything. A 23 percent interest rate over three years adds up, and how much it adds up to depends on the vehicle price you’re financing. Ask Mikano or UBA for a full repayment breakdown, including total interest payable, before you commit to a specific car.
How to Apply for the UBA-Mikano Vehicle Loan
The process is built around two stops: your nearest UBA branch first, then Mikano Motors.
- Start with an eligibility check. Visit any UBA branch or send an email to consumerlending@ubagroup.com to confirm whether you qualify for the scheme.
- Get approved. UBA reviews your eligibility based on its standard credit and income assessment.
- Head to Mikano Motors. Once approved, you proceed to a Mikano Motors showroom to select your preferred vehicle and obtain a proforma invoice.
- Complete the financing. With the proforma invoice in hand, you finalize the loan paperwork and payment structure with UBA.
Okpala described the process as guided from start to finish: “A short eligibility check at any branch or by email is all it takes to begin, and our team guides the customer through every step to the moment they collect their keys.”
Why UBA and Mikano Are Doing This
Every bank partnership comes with a business case, and this one is no different. For UBA, the deal extends its consumer lending book into an asset class — vehicles — that carries collateral value and taps into steady demand from Nigeria’s growing middle class and business owner population. For Mikano Motors, it’s a way to move more vehicles by removing the upfront cost as the main obstacle.
Mikano Motors isn’t new to the Nigerian market. Established in 2018 under Mikano International, the dealership builds on more than 35 years of the parent group’s presence in the country, and it runs a diversified vehicle portfolio backed by nationwide sales and after-sales service.
For UBA, this isn’t its first vehicle financing push either. In December 2025, the bank rolled out a separate $100 million scheme with CIG Motors and ride-hailing platform Lagride, tagged “Drive to Own,” aimed at helping 3,500 drivers in Lagos acquire vehicles with just a 10 percent equity contribution over 48 months. Compared to that arrangement, the Mikano scheme asks for a bigger down payment (30 percent versus 10 percent) but runs a shorter repayment window (36 months versus 48), which suggests UBA is tailoring loan structures differently depending on the partner dealership and target customer.
UBA operates in 20 African countries plus the UK, US, France, and the UAE, and says it serves more than 45 million customers with a workforce of roughly 25,000 employees group-wide. This latest scheme is part of what the bank describes as an ongoing push to widen access to structured credit for personal and lifestyle purchases across its markets.
Should You Apply?
If you’ve been saving toward a car and can comfortably raise 30 percent of the purchase price, this scheme is genuinely worth exploring, particularly if you’re self-employed and have struggled to qualify for conventional auto loans elsewhere. Just don’t skip the arithmetic. Get the full cost breakdown, including total interest over the 36-month term, before you decide. A structured loan is only a good deal if the numbers actually work for your budget.
For the latest updates on this scheme and other UBA consumer lending offers, reach out directly to consumerlending@ubagroup.com or visit a UBA branch near you.
