For a country where nine out of every 10 vehicle purchases involve pre-owned cars because new ones are simply too expensive, Access Bank has just launched a product designed to change that arithmetic entirely.
Access Bank has launched a vehicle financing initiative that will allow Nigerians to buy vehicles with as little as a 10% deposit, while the bank finances up to 90% of the vehicle's value. The initiative is part of its vehicle asset financing programme aimed at expanding vehicle ownership and mobility services across Nigeria. Customers can apply digitally for vehicle loans and receive approval within 72 hours, with applicants required to provide a minimum equity contribution of 10% before accessing financing for the balance.
The programme, known as Access AutoFest, was launched in partnership with major automobile distributors, including CFAO Motors Nigeria, CIG Motors, Elizade Motors, Kewalram Chanrai Group, Mikano Motors Division, and Stallion Group.
Executive Director of Corporate and Investment Banking at Access Bank, Iyabo Soji-Okusanya, framed the product in explicitly economic terms: "At Access Bank, we see mobility as more than transportation. It is productivity, commerce, inclusion, and economic participation. Our proposition is simple and powerful: convert aspiration into ownership."
The problem the initiative targets is structural and well-documented. Nigeria records annual vehicle sales of about 100,000 units, with only about 10% being brand-new vehicles, while the remaining 90% are pre-owned. Rising vehicle prices have significantly reduced affordability for many Nigerians.
The initiative extends beyond individual consumers to corporate organisations, schools, hospitals, and other businesses requiring vehicle fleets. Access Bank also disclosed plans to expand financing access to operators in the ride-hailing and transport sectors that are currently outside the formal banking system.
The product architecture is designed to reduce friction at every stage. The platform brings together vehicle manufacturers, dealers, and financing providers, enabling customers to purchase both new and certified pre-owned vehicles through a single process. Customers would also benefit from insurance, after-sales support, and a digital loan application platform that enables applicants, dealers, and the bank to track the progress of transactions. Repayment tenures extend beyond four years, with provisions in place for customers who encounter difficulties during the repayment period.
Credit decisions will be made within 72 hours through the fully digital application process, with successful applicants receiving their vehicles and documentation within the same 72-hour window after meeting the requirements.
For Nigeria's automotive sector, which has long been constrained by the absence of accessible vehicle financing infrastructure, the Access AutoFest programme represents an attempt to do what mortgage markets do for housing: separate the cost of a major asset from the ability to use it immediately. Whether a 90% financing ratio at current interest rates translates into genuinely affordable monthly repayments for middle-income Nigerians is the test that will determine how many of those 100,000 annual sales the bank can actually convert.
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