UBA and Mikano Motors Launch Nigeria Auto Loan Scheme

In Short

UBA and Mikano Motors have launched a new vehicle-financing offer called “Drive Your Dream Today.”

What Happened

United Bank for Africa (UBA) and Mikano Motors announced a vehicle-financing scheme aimed at making car purchases easier for salaried workers and entrepreneurs in Nigeria.

Under the plan, eligible buyers pay a 30% down payment (the upfront amount you pay before a loan starts). UBA funds the remaining 70% as an auto loan.

UBA says the repayment period can run for up to 36 months, which is three years. The stated interest rate is 23%, meaning borrowers repay the loan plus an added cost for borrowing.

The scheme targets two broad groups. These are salaried employees, and business owners who can show steady income.

Why It Matters

Vehicle financing is often difficult for small business owners in Nigeria, especially when lenders require large upfront payments or short repayment windows. A 70% bank-financed structure spreads the cost and can improve access for buyers who need a predictable monthly payment.

For entrepreneurs, a financed vehicle can also be a business asset, for logistics, sales visits, or service delivery. But the 23% interest rate is a key number to watch, because it can make the total cost of ownership much higher over three years.

For UBA, this is another push into consumer and SME lending, using partnerships to drive loan volumes. For Mikano Motors, it is a distribution lever, since financing can increase conversion from interested shoppers to actual buyers.

Borrowers will likely compare this offer against other auto loan and asset finance options in the market. They will also pay attention to documentation requirements, approval timelines, and whether the loan includes insurance or other bundled fees.